One of the most important financial decisions you will make is to purchase life insurance. The future is unknown, and many people die too soon each year because of accidents or catastrophic illnesses. Have you ever considered how your family members would cope if you were to deal with such a calamity?
It is your obligation as the family's single earner to ensure the financial security of your loved ones' future. Even if you are no longer able to provide for your family, a life insurance policy can help them maintain their standard of living and meet all of their financial demands.
Let's take a look at what a life insurance policy is and how it can help you provide for your family in the event of your death. And that's not all! We will also guide you through the best life insurance plans available in the UAE.
What is Life Insurance and how does it work?
Life insurance is a contract between a policyholder and an insurance provider in which the insurer (insurance company) promises to pay a certain amount of a death benefit to the beneficiary if the policyholder dies unexpectedly during the policy's term.
In exchange, the insured agrees to pay a set amount of money as a regular premium, a limited premium, or a one-time premium. One can safeguard the financial stability and security of their family's future by purchasing adequate life insurance coverage.
UAE Life Insurance Policy
In the United Arab Emirates, there are a few life insurance firms that offer a wide range of life insurance plans, including endowment policies, term insurance, whole life insurance, ULIPs, and so on. Premium rates for life insurance in the UAE vary by policy and are determined by the applicant's age, medical history, sum assured, income, and a variety of other factors. Applicants, on the other hand, can simply obtain the best life insurance coverage at the greatest price by conducting thorough market research and comparing best life insurance quotes. The due price for a fair coverage of AED 1 million ranges from AED 1200-1400.
A Step-by-Step Guide to Purchasing Life Insurance in the United Arab Emirates
The following are five simple steps to purchasing life insurance products –
Select the Policy Type
When purchasing life insurance in Abu Dhabi and throughout the UAE, the first and most crucial step is to determine the type of coverage. To determine the sort of coverage, insurance applicants should first examine their insurance needs and budget, then conduct online life insurance research.
Determine the Area of Protection
The next step in the process is to figure out how much coverage the life insurance Dubai plans will provide to properly satisfy the loved ones' financial commitments. For a safe and secure future, one should typically obtain coverage equal to ten times one's present annual salary.
Examine your financial Budget
Because life insurance is a long-term commitment, it's critical to review and examine your budget before obtaining life insurance policies in the UAE.
Obtain Life Insurance Estimates
To obtain different life insurance quotations, the applicant can conduct research online using the life insurance provider's official website or a web aggregator or contact insurance providers offline using their official contact number.
Compare, narrow down, and buy
The final step is to compare various life insurance quotes based on criteria such as price and features, then narrow down the providers and plans. Finally, choose the most affordable life insurance coverage that meets all of your insurance needs.
Documents Required to Buying a Life Insurance Policy:
An applicant needs to submit the following documents to buy a life insurance UAE policy:
- Passport-sized photographs
- Emirates ID
- Passport with UAE residence Visa (for expats)
- Address Proof (For example utility bills)
- Bank Statement from the past three to six months
- Income certificate
- Salary slip
- Proof of health status
Note: However, policy buyers may also need to submit some additional documents as requested by the insurance company.
Benefits of a Life Insurance Policy in the United Arab Emirates
Consumers can profit from life insurance in a variety of ways. The following are some of the most important advantages of life insurance policies:
If a policyholder dies during the policy's term, leaving their family without an income, the life insurance company will compensate them with a death benefit.
Life insurance contracts include a guaranteed sum assured amount, which is paid to the beneficiaries by the insurance company upon the policyholder's death.
Medical Expense Coverage
Life insurance policies also cover severe illness and hospitalization costs. In the event of a handicap or a diagnosis of an illness, a life insurance policy helps you to seek appropriate treatment.
Peace of Mind
Purchasing the greatest life insurance coverage provides an individual with peace of mind, knowing that their loved ones will be cared for in the event of an unforeseen occurrence.
Assists in Wealth Creation
There are several life insurance products on the market that offer both coverage and investment opportunities. The policyholder's premium is dissected and used to deliver coverage and investment benefits
Most life insurance plans in the UAE include add-on riders such as temporary/permanent disability coverage, critical illness coverage, terminal illness coverage, premium waiver benefit, personal accidental coverage, and so on, which are supplemental coverage over the basic plans that are typically purchased with the goal of enhancing the plan's protection.
As we can see getting a life insurance is not a big task you just need to be aware of the of the type of insurance that best fits you at a good price. Many companies at UAE are providing great insurance covers. We hope this article gave you a good insight of how to buy an insurance, its benefits and documents needed, to know more about the topic you can connect to our experts at Dhanguard which would have great delight to assist you. You can also visit our website to learn more.