Term Insurance

Term Life Insurance provides financial coverage to the nominee in case of sudden death of the insured. This coverage is delivered for a specific period of time. It is the most basic insurance policy with affordable premium rates available in UAE. Dhanguard will guide you through the whole process as well as solve your queries.

The insurance also offers coverage to the insured family in case of any financial crises due to the unintentional disability of the insured that has led to loss of their income.

With the changing lifestyle and higher cost of living in the UAE, attainment of term life insurance for your family is very much useful. The main need of acquiring a term insurance policy is that it approaches with less premium rates.

The other reasons for having the term insurance are as follows-

  1. In case of an sudden death of the insured, the advantage can be availed by the family members;
  2. As compared to other premium insurance, the premium for term insurance is less as well as affordable that will help you to plan for your child education, retirement, purchase of any property and many other things for your livelihood;
  3. The payments are customized as per the obtainability of the insured. The insured person can pay it as monthly payment or as a one-time payment;
  4. Various conditions can be added to your prevailing term insurance policy which surges the coverage. Conditions such as critical illness, permanent disability, and accidental death can be added further as an additional coverage to the policy.

The minimum eligibility of availing term insurance in UAE is the age criteria. Person availing this insurance has to be minimum of 18 years and the maximum of 65 to 75 years which is totally based on the insurance provider.

Based on the necessities of insurance companies, the documents differs. Still, the common documents required in UAE are as follows-

  1. Emirates ID
  2. Residential Visa
  3. Recent Photographs

Acquiring insurance always comes with numerous questions and thoughts such as which is the best term insurance policy and the assessment with other insurances would be advantageous. A few tips on how to select the best term insurance are as follows-

Affluence Ratio

Affluence ratio aids the insurer you select with an insurance based on the fiscal capability of resolving the claim if the necessity arises.

Age

Always choose for insurance that offers you with maximum coverage. It is challenging to get insurance for people of age as their chances of pre-existing illness are greater.

Inflation

The significant point that one needs to understand is that inflation plays an important role in insurance policies. One should always look for insurance which offers increasing coverage every year by a locked percentage or is guided to the inflation frequency.

Term insurance comes with certain inclusions that are stated as follows-

Death benefit

The insured amount can be used by the family members in case of the sudden demise of the insured person.

Family Income Benefit

In some circumstances, the insured can come across any kind of disability and is incapable to provide an income to the family. Thus, this policy will help with a monetary amount on a regular basis that might meet their day-to-day expenditures.

Financial Protection

Financial assistance can be availed from the policy in any inevitable situations such as school fees, EMI, debt repayment and many more.

Family Takaful

Such assistances are provided by some insurance companies that can help cover any fatal illness of the insured or family member of the insured.

What are the Benefits of Term Life Insurance?

Term life insurances are more affordable as it can be availed for a high life cover on the same premium amount.

Some of the benefits of having a term life insurance are as follows-

Benefits of Term Life Insurance

Affordability

With the best plans obtainable at a reasonable premium rate that covers the advantages of having term life insurance with viable premium available.

No maturity value

There is no maturity value presented for a term insurance policy. It provides benefits post-death of the insured as well.

Flexibility

This type of insurance policy is flexible. Once the insured stops paying the premiums the coverage will also stops.

Easiness

Apart from the other life insurance policies, the term insurance policies is the basic form of available policy.

What are the Exclusions in Term Life Insurance?

Term insurance has certain exclusions that cannot be covered, they are as follows-

  1. If the death has occurred due to HIV or AIDS;
  2. Claim raised due suicide or attempted suicide or self-inflicted injury;
  3. Claims related to any illegal activities;
  4. Death due to alcohol driven accident;
  5. Claims related to childbirth or pregnancy complications.

How to Claim a Term Life Insurance?

To claim Term Life Insurance in UAE, following are the things to be kept in mind.

Claim Intimation

It is very vital that the claim has to be first informed to the insurance company. The insurer requires to register the claim through customer service or through the company directly.

Claim Assessment

Once the claim is surrendered, the insurance company will examine the claim with the required documents and evaluate to proceed further.

Claim settlement

Post assessment, the claim is established directly to the protected bank account.

What are the types of Term Insurance Plans available in UAE?

There are numerous types of term insurance policies available in the UAE. Subject to the provider, these policies comes with different benefits and features.

the types of Term Insurance Plans available in UAE

Convertible Term Policy

The policy comes with a limited number of years that allows the policyholder to adapt the term policy to a whole life insurance policy. The main advantage of this kind of term policy is that the insured is not obligatory to submit any medical test while changing the policy.

Increasing Term Policy

An increasing term insurance plan permits the policyholder to upsurge the death benefit with time. On the other hand, the premium rate may or may not remain the same during the tenure of the policy.

Decreasing Term Policy

It is just opposite to increasing term policy, in this type of term plan, the total of the assured amount reduces each year up to a fix percentage. The available premiums are moderately lower than a pure term plan and the payments remain constant during.

Level Term Insurance

Under this type of policy, a fixed constant sum is paid for a claim, irrespective of whether the claim is made at the early stage of the policy or towards the end of the term of the policy. Furthermore, the insurance payments stay the same and there will be only one payout.

Few Tips to Choose the Best Term Insurance Policy

The market is filled with plenty of term life insurance plans with diverse policy tenures, benefits and guaranteed sum. So, selecting for the best term insurance policy as per your appropriateness can be an intimidating task. But if you know that how to get the best deal then you will find the right one easily. 

The below-mentioned tips should be followed when looking for the best term plan available in UAE-

Reliability

When picking up a term plan, it is extremely advisable to look at the insurance company’s status in the market. It is very important since term insurance plan is a long-time investment and as an assured, you should not be left in the heave. If in case the company shuts down all of a sudden then it will not provide claim on time or encounters with any other difficulties faced by the assured person. That is why it is vital to check the company’s constancy as well as dependability before buying any term insurance plan in UAE.

Claim Settlement Ratio

The claim settlement ratio portrays the market value of the insurance provider who plays an essential role in selecting the best term insurance policy available in UAE. You need to check the claim settlement ratio with the lowest available premium cost and great aids for the safe and secure future. Insurance companies with a high claim settlement ratio are deliberated to be a better option or reliable since high claim settlement ratio are promising.

Riders or Additional Coverage

Some of the best insurance companies in the UAE offer conditions or additional coverage along with regular term insurance policies which can be claimed by paying an extra premium. A term insurance plan which provides the basic coverage and also provides riders is deliberated as a secure one because it provides wider coverage.

Policy Comparison

It is highly recommended to compare different term plans online so that you can choose the right plan according to your requirements.

Premium

Most of the people select a policy that is based on just their premium that how much they want to pay in order to enjoy the profits. It is extremely advisable not to rely on premium but also the coverage and benefits.  The reason for this is that insurance policy with the low premium that can offer you less coverage that will not solve your purpose of purchasing the policy. To buy the best term insurance policy, you have to compare the different plans and examine each and every details of each plan so that you can make the most of your insurance policy.

Term Insurance Related FAQ

Frequently Asked Questions