This article delves deep into the realm of holding multiple term insurance policies, highlighting the benefits and answering your pressing queries regarding this facet of financial planning.
Buy a term plan and secure your family
Before buying term insurance you should know about What is term insurance?
A term insurance policy is a subtype of life insurance plan where the policyholder’s family receives financial coverage in case of his/her death within the coverage period. Here, one purchases the policy for a term of 5 to 35 years and has the option to renew it after that to continue the coverage.
There is a variety if term insurance plans that’s meant to cater to a wide range of customers and their varying needs -
Age-wise Term Insurance Plans |
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5 Year Term Life Insurance | 10 Year Term Life Insurance | 15 Year Term Life Insurance |
20-Year Term Life Insurance | 25-Year Term Insurance | 30-Year Term Insurance |
A term insurance UAE plan determines the extent of coverage and premium based on a few factors. These are your age, current health condition, existing medications, smoking habits, and family history. Moreover, in some cases, there will be a medical examination to determine an applicant's current health condition.
Based on all this information, the insurance company will decide on the premium amount, coverage amount and policy tenure. Let’s take an example to get a better idea of this.
For instance, Mr. A is a 28 years old working professional who wants to buy a term insurance plan of AED 4 million. However, his medical history is not good; he is diabetic and has a family history of heart disease. In this case, the policy provider will be cautious and may charge a higher premium amount. And, in some cases, the policy tenure may not be as long as he wants.
On the other hand, Mr. B is a 35-year-old working professional with no serious illness and has no family history of critical diseases. Now, if he wants to purchase a term insurance plan of the same amount, he has to pay a lower premium amount compared to Mr. A for obvious reasons.
Moving ahead, if you die within the policy term, the insurance company will pay the coverage amount as specified in the insurance agreement to the beneficiary/beneficiaries. However, no such coverage will be available if your policy expires before your death. Nonetheless, you can renew your policy to enjoy the coverage in the long run.
A point to note here is that a term insurance policy does not offer any additional coverage apart from death benefits.
Choosing the right term insurance UAE plan according to your needs takes some time and effort. For your convenience, we have made a list of the best term insurance plans in UAE.
A term insurance plan is a necessity because of its most highlighted benefit, the lump sum coverage it offers following the death of a policyholder. Here, the amount comes without any end-use restrictions, which means the beneficiaries will be able to spend it any way they want to. This can include, repaying debt, managing education expenses, or making further investments.
You get a lot of benefits to enhance your life protection with a term plan.
Expatriates working in the UAE can opt for a term insurance plan for its obvious benefits, i.e. the financial security it offers. Here are some reasons why expatriates should opt for a term insurance policy in UAE.
Before buying a term insurance plan in UAE, you must fulfil a few eligibility requirements.
For buying a term insurance plan in UAE, a table with various eligibility criteria is provided below -
Particulars |
Eligibility |
Minimum Age |
18 years |
Maximum Age |
65-79 years depending on the insurer |
Policy Duration |
1 to 35 years |
Who is allowed to purchase a term insurance plan? |
Working Individuals Newly Married Couples Parents Senior Citizens |
Payout choices |
Lump sum Monthly or yearly payout Lump sum with fixed regular payout |
Additional Riders |
Critical illnesses cover Accidental death cover Family income cover Permanent total disability cover Premium waiver cover |
Medical Test |
Depending on the insurer, you may require medical test |
You should buy a term insurance plan early on because premiums are lower when you are young. As your age increases, the premiums increase.
The reason behind this notion is that, usually, with age, you suffer from various health-related complications. These can include all the major and minor diseases. Now, if you apply for term insurance later in your life, chances are you will not get the best possible deal.
Term Insurance for NRI |
Comparing term insurance plans will help you to understand more about each policy from different insurance companies. After going through each term insurance plan, you will be able to understand which plan is the best fit for your requirements. Then you can shortlist the one with the maximum benefits.
You can compare various insurance plans by visiting each insurance provider’s website individually. But, that will be a time-consuming process. Alternatively, you can browse through term insurance plans here at Policybazaar Insurance. Here, you can find term policies from different insurance providers and compare and learn about them easily.
Here is a table offering an overview of the comparison –
About Term Insurance |
Increasing term plans |
Decreasing term plans |
Convertible term plans |
Return of the premium |
Level-term insurance plan |
---|---|---|---|---|---|
Definition |
The coverage amount increases each year |
The coverage amount lowers each year |
Can convert to a whole life insurance plan if required |
Receive the premium amount, if survived the policy tenure |
The premium amount remains same throughout the tenure |
Coverage amount |
Increases ever year |
Decreases every year |
As per the policy terms |
As per the policy terms |
Remains level throughout the tenor |
Return of premium |
NA |
NA |
NA |
Yes |
NA |
Facility of renewal |
Yes |
Yes |
Yes |
Yes |
Yes |
You need to consider the following factors before you purchase a term insurance plan –
The cost of a term insurance plan may vary depending on who’s subscribing to it. If you lead a healthy lifestyle and you are comparatively younger, you may have to pay lesser premiums. However, indulging in life-threatening lifestyle habits and an overall poor health status may lead to higher premiums. We’ve listed a few prominent factors here that can affect your premiums. Let’s take a look:
Insurance providers in the UAE have an easy process for term insurance claims. The following are the necessary steps that are required to settle a claim -
Step 1: To file a claim, beneficiaries need to submit a duly filled claim settlement form.
Step 2: The following documents need to be submitted to settle the claim -
Step 3: With all the processes completed on your end, expect a waiting period of 4-5 business days.
Step 4: After the insurance provider verifies all your documents and finds them satisfactory. It disburses the pre-agreed insurance amount to the beneficiaries.
Here are some common exclusions of a term insurance plan-
Term insurance is undoubtedly a great safety net for dependents as it secures their financial future. In absence of a provider, they can use these funds to meet a host of monetary requirements. The sole earner of a family can secure their family’s future simply by opting for a term insurance plan for the Family that’s affordable and yields great benefits.
Pro tip: Before opting for a plan, the buyer must go through all the terms of the policy and understand them. In case of any confusion, it’s best to clear them and then sign the agreement to make a sound decision.