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20 Year Term Life Insurance

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While insurance has been among the necessities of life for a long, the added uncertainties from COVID-19 and other issues have made insurance the need of the hour. A term life insurance policy like a 20-year term life insurance plan can help an individual stay ready for any life changes.

A 20-year term life insurance plan is a level term insurance policy that locks in the policyholder’s premium for 20 years. Under this plan, the policyholder pays a levelled premium. In case of their demise during the coverage period, the beneficiaries receive the sum insured.

Read the article below to learn more about how 20-year term insurance works, its benefits, the top plans in the UAE, and more.

How to Choose the Right 20 Year Term Life Insurance Plan?

The following factors will help you compare and select the best 20-year term life insurance plan

  • Claim Settlement Ratio – This is the correlation or ratio of the claims made and the claims the insurance provider settled in the given year. The claim settlement ratio depicts the reliability of the 20-year term life insurance plan you select. It is essential to consider securing a term insurance plan from a provider that has a higher claim resettlement ratio, as this can help you be assured that your family will remain financially secure despite any unfortunate circumstances.
  • Riders – Riders are optional covers that you can choose to include in your term insurance plan to make it more comprehensive. You can include these add-ons to your plan with a minimum rise in the premium rate. Once you are clear with your requirements, you should check whether your selected plan or provider offers riders that suit your needs.
  • Critical Illness Cover – Several term insurance providers offer critical illness cover in addition to a basic life plan. This is particularly beneficial, as getting treated for a critical illness can result in burning a hole in the pocket. Thus, selecting a 20-year term life insurance plan with critical illness coverage becomes essential. Such a plan can offer financial cover to the insured and their family for costs incurred during hospitalisation, treatment, and more.
  • Solvency Ratio – The solvency ratio showcases the insurance provider’s ability to settle claims in case of any unfortunate event. For instance, when a natural calamity occurs, the provider receives a large number of claims. Here, the number of cases they manage to settle determines their solvency ratio. A higher solvency ratio implies that the provider can settle several claims at once. You should choose a plan from a provider with a higher solvency ratio.

Term Insurance Plans

5 Year Term Life Insurance 10 Year Term Life Insurance 15 Year Term Life Insurance

Benefits of Opting for a 20-Year Term Life Insurance Plan

Some of the general features and benefits of a 20-year term life insurance plan are discussed below.

  • Extended Coverage – The insured individual is covered for 20 years with such a plan. The term insurance plan here ensures that the insured and their family members can live their lives comfortably during the coverage period.
  • Death Benefit – In case the insured individual passes away during the policy period, their beneficiary will get the death benefit. This amount depends on the premium the policyholder paid. The death benefit amount is generally higher for 20-year term life insurance plans than the traditional life insurance policies.
  • Surrender Benefit – Policyholders can receive a surrender benefit if they decide to surrender the 20-year term life insurance plans before their maturity.
  • Scope of Riders – With help of riders, the policyholder can customise the plan as per their requirements. Riders make term life insurance plans more comprehensive at nominal additional costs.
  • Premium Payment Methods – You can pay the premium either monthly, quarterly, half-yearly, or annually depending on your budget.
  • Lower Premium Amount – The premium rate of a 20-year term life insurance plan is usually lower than the premium rate of other short-term insurance plans. This low premium can easily be paid without disturbing the budget of a policyholder.

Top 20-Year Term Life Insurance Plans 

Tabled below are some of the best 20-year term life insurance plans in the UAE –

Policy Provider

Policy Name

Premium Amount

HAYAH Insurance (Previously AXA GCIC)

Term Life Protect

AED 677 per annum

Noor Takaful – Watania

Pure Protection

AED 600 per annum

Takaful Emarat

Fixed Term

AED 669 per annum

Union Insurance

Smart Term

AED 1,799 per annum

Noor Takaful - Watania

Pure Protection Cashback

AED 2,220 per annum

Note – The premium amount may vary depending on the applicable discounts, your lifestyle, and other factors

Features of the Term Life Insurance Plans

Discussed below are the top features of the mentioned term life insurance plans –

Policy

Features

HAYAH Insurance (Previously AXA GCIC) – Term Life Protect

  • Level Term Plan
  • Waiver of Premium Benefit
  • Cover for –
  • Death due to any cause
  • Terminal illness
  • Passive war and terrorism
  • Worldwide coverage
  • COVID-19 Coverage

Noor Takaful – Watania – Pure Protection

  • Level Term Plan
  • Worldwide Coverage
  • COVID-19 Coverage
  • Coverage for Pre-existing Diseases – Subjected to the provider’s approval
  • Death Benefit only when –
  • The information provided and disclosed about the death by the beneficiary are correct
  • The death of the insured should not be suicide within the first year from the date when the policy comes to force
  • The participant has not asked to terminate the Takaful certificate before their death

Takaful Emarat – Fixed Term

  • Level Term Plan
  • COVID-19 Coverage
  • Worldwide coverage
  • Cover for pre-existing diseases – subjected to the provider’s approval

Union Insurance – Smart Term

  • Level Term Plan
  • COVID-19 Coverage – after 30 days from the date when policy tenure begins
  • Cover for pre-existing disease – same as the sum insured payout in case of death (waiting period of 6 months)
  • Worldwide coverage
  • No medical check-up required
  • Cover for sickness –
  • First 12 months – 20% of the sum assured
  • 13 to 18 months – 60% of the sum assured
  • After 18 months – 200% of the sum assured
  • Cover for accidental death – 200% of the sum assured
  • Cover for Terminal Illness (death is inevitable within 12 months) – cancer or kidney failure – covered after a waiting period of 12 months

Noor Takaful – Watania – Pure Protection Cashback

  • Level Term Plan
  • COVID-19 Coverage
  • Maturity Bonus Payout – 50% of the premium paid
  • Worldwide coverage
  • Accident Cover – Same as the sum insured to be paid in case of death
  • Sickness Cover – Same as the sum insured paying in case of death

Add-ons of 20-Year Term Life Insurance Plans

You can utilise the following add-ons to enhance the coverage of the 20-year term life insurance plans –

Policy Name

Add-Ons

HAYAH Insurance (Previously AXA GCIC) – Term Life Protect

  • Critical Illness (on diagnosis): Cover of AED 200,000 – AED 200.16
  • Temporary Life Cover: Cover AED 900,000 – Free
  • Permanent Total Disability: Cover same as the sum insured – AED 90.91

Noor Takaful – Watania – Pure Protection

  • Critical Illness (on diagnosis): Cover of AED 200,000 – AED 240
  • Permanent Total Disability (due to accident and disease): Cover of AED 200,000 – AED 7

Takaful Emarat – Fixed Term

Critical Illness (on diagnosis): Cover of AED 200,000 – AED 252

Union Insurance – Smart Term

Passive War Risk

Noor Takaful – Watania – Pure Protection Cashback

Repatriation Benefit – AED 5,000

Exclusions in 20-Year Term Life Insurance Plans

Listed below are the major exclusions of the said term life insurance plans –

Policy Name

Exclusions

HAYAH Insurance (Previously AXA GCIC) – Term Life Protect

  • Death due to participation in any criminal activity
  • Involvement in active terrorism, war, or warlike operations
  • Intentional self-inflicted injury
  • Congenital anomalies
  • Loss occurred when –
  • Participating in professional or hazardous sports like climbing, mountaineering, bungee jumping, paragliding, scuba diving, and more
  • Demise due to substance abuse

Noor Takaful – Watania – Pure Protection

  • Suicide
  • Active War Risk – includes civil war, riots, revolution, conspiracy, overthrow of the official government, insurrection, state of siege, military or usurped power, and more
  • Nuclear, Chemical, or Biological Explosions

Takaful Emarat – Fixed Term

  • Suicide
  • Active War Risk Restrictions – includes war, invasion, act of foreign enemies, warlike operations,  mutiny, riot, strike, terrorism, civil war, and more

Union Insurance – Smart Term

  • Active participation in war or similar operations like civil war, riot, civil commotion, insurrection, or any other act of violence
  • Participation in activities like aviation, gliding, or any other aerial flight that is not operated by a commercially-licenced pilot or crew
  • Attempted suicide
  • Intentional self-inflicted injury
  • Accidental or deliberate use of nuclear, chemical, or biological substance causing an explosion
  • Infections caused by HIV
  • Terrorism

Noor Takaful – Watania – Pure Protection Cashback

  • Suicide
  • Active War Risk – includes civil war, riots, revolution, conspiracy, overthrow of the official government, insurrection, state of siege, military or usurped power, and more.
  • Nuclear, Chemical, or Biological Explosions, Contamination, Pollution, or fire

Eligibility Criteria to Purchase a 20-Year Term Life Insurance Plan

To purchase a 20-year term life insurance plan, it is essential to meet the eligibility criteria. The general eligibility requirements followed by most term life insurance plans include –

  • Age –To secure a 20-year term life insurance plan, the applicant needs to be at least 18 years old. However, with some providers having set the age limit to 21 years, you need to check the policies of the providers before purchasing a plan.
  • Nationality –To get a suitable 20-year term life insurance plan, you should be a UAE national or a resident with a credible UAE resident visa. When you are buying a term insurance plan, you may be required to present some other documents that serve as proof of your residency.

Common Eligibility Criteria for 20-year Term Life Insurance Plan

Given below are the common eligibility criteria for 20-year term life insurance plan –

Particulars

Eligibility

Minimum Entry Age

18 years

Maximum Entry Age

Between 65 and 79 years (depending on the insurer)

Ideal for

  • Salaried individuals
  • Newly married couples
  • Senior citizens
  • Parents

Nationality

UAE National and Residents with valid Visa

Documents Required for 20-Year Term Life Insurance Plans

Here is the list of documents required to secure a term life insurance plan in the UAE –

  • Emirates ID
  • Passport-sized photographs
  • Passport with a UAE residence visa for expats
  • Proof of address or utility bills, rent agreement, and more
  • Bank statement for the last three to six months
  • Certificate of Income or Salary Slip
  • Medical Record

General Claim Procedure for 20-Year Term Life Insurance Plans

The following is the process by which a beneficiary can file and settle the claim for a 20-year term life insurance plan – 

  • Inform the insurance provider about the insured individual’s death and state the events that resulted in this situation. If the death was due to an accident, it is essential to provide every detail related to it.
  • Upon the policyholder’s unfortunate demise, the beneficiary first needs to submit the claim form. This form can be downloaded from the provider’s official website.
  • They should then affix the documents to support the claim. The documents for the same can include but are not restricted to the following –

For death within the UAE

  • Original claim form – signed and filled
  • A credible copy of the beneficiary’s passport or Emirates ID
  • Certificate of Insurance
  • Policyholder’s copy of passport with a valid visa page to prove the residency status
  • Original medical report stating the detailed diagnosis and the reason for death
  • Copy of the autopsy report and police FIR (if the death is caused by an accident)
  • Other documents, as and when required by the provider

If the death happened outside the UAE, additional documents would be required –

  • Verified, original copy of the death certificate, attested by the UAE Embassy of the country where the death happened
  • A copy of the UAE visa cancellation page
  • Other documents as and when required by the insurance provider
  • Once the insurance provider receives all the documents, they initiate the process of reviewing the documents and analysing their authenticity. Once they find the documents authentic, they transfer the case to the billing department.
  • The billing division estimates the amount payable and compensates the beneficiary with the death benefit

Why Purchase Term 20 Year Term Life Insurance Plan from Policybazaar UAE?

Over time, purchasing a 20-year term life insurance plan online has become preferable owing to its convenience and accessibility. Online shopping on third-party portals helps in comparing and choosing the best insurance policy. In the UAE, one can come to Policybazaar UAE for this, as it is an easy-to-use portal that brings term life insurance policies from the leading providers in the UAE under one roof.

You can simply visit policybazaar.ae and fill out the lead form in the ‘term insurance’ or ‘life insurance’ section with the requested details. You will then be directed to the quotes page, where you can browse through the options and read the policy wordings in detail. With this, you can select a term life insurance plan as per your requirements after carefully comparing the best options.

Some of the benefits of purchasing a 20-year term life insurance plan via Policybazaar UAE are –  

  • Affordable premium rates of all the life insurance policies
  • 24-by-7 customer care if you are confused in the process of selecting the term insurance policy
  • Assistance from an expert team of insurance advisors via phone, WhatsApp, and e-mail
  • Incredible after-sales service
  • Rebates and discounts on the premium rates

For better clarity on the topic, check out the FAQ section below!

Frequently Asked Questions

Q1. How does the 20-year term life insurance planwork?

Ans: When an individual purchases a 20-year term life insurance plan, they can choose to pay the premium annually, half-yearly, monthly, or quarterly. If they pass away during the policy period, their beneficiary will receive a corpus known as the death benefit. However, no death benefit will be paid in case the policyholder passes away after the policy matures.

Q2. What factors can affect the premium rate for your 20-year term life insurance plan?

Ans: The following factors can affect the insurance premium rates –

  • Health condition
  • Smoking habits or consumption of tobacco
  • Age
  • Riders
  • Family’s medical history
  • Occupation

Q3. Do you receive any benefit in case your 20-year term life insurance planexpires?

Ans: You don’t receive any maturity benefit once your policy lapses. Term insurance only offers a death benefit when the policyholder passes away during the policy period.

Q4. Can a policyholder cancel the term insurance policy?

Ans: The insured individual can cancel the term insurance plan within the first 30 days. Once the policy gets activated, they can only surrender the plan. Note that the policy can get cancelled even when the insured fails to pay the premium regularly.

Q5. When should you secure a 20-year term life insurance plan?

Ans: Here are some situations where you can consider securing a 20-year term life insurance plan –

  • You have a young family
  • You want maximum coverage
  • You are going to attain your retirement age within the next 20 years
  • You want to support your permanent coverage plan

Q6. Do you need to undergo a medical examination for a 20-year term life insurance plan?

Ans: Once you apply for a term insurance plan, the provider may ask you to undergo a medical examination. The examination includes measurement of height, weight, and blood pressure, collection of urine and blood samples, and certain questions associated with your health.

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