6 Things to Keep in Mind While Buying A Term Insurance Plan in the UAE

Term insurance is a type of life insurance plan that provides coverage only for a specified time period or "term". In case, the insured dies within the time period as specified in the policy, a death benefit is paid to the beneficiaries of the insured. There are several types of term insurance policies available in the UAE. Some of them offer level premiums for the entire duration of the policies while others may offer an option to receive life cover and a steady monthly income for a higher premium. However, after seeing a variety of coverage options and plans, you may not know which plan to buy.

If you are also looking forward to buying a term insurance plan, here are the things that you must definitely keep in mind:-

Coverage amount must be decided

Before you start finding the most suitable term life insurance plan for yourself, you need to decide on the coverage amount. Some of the aspects that can be considered while making this decision are your age, family's future financial requirements, any active loans, etc.

Age will always matter

The period for which you will buy term insurance directly depends on your age. If you are young and decide to buy a term life insurance plan, it is advisable to take it for a longer duration. This is so because once the term expires you will need to pay higher premiums for buying another term insurance policy.  Therefore, one must decide on the policy period as per their present age and need.

A thorough comparison will be required

Term insurance not only offers pocket-friendly premiums but also offers financial security. However, there is only one problem; finding the most suitable and economical term life insurance plan. For this, you will need to do some thorough research and compare the various term insurance plans offered by different insurers. This will help you find out the best life insurance plan, as per your budget and financial requirement.

The insurer must be chosen wisely

Even after deciding the term life insurance plan you wish to buy, it is very important to choose an insurance partner that suits you best. When deciding on your insurer, it is vital to carry out some basic checks. You must carefully check the financial background, market reputation, settlement, and solvency ratio of the provider.

Lying will increase the risks

We all know that lying to lawyers and doctors always goes bad, and so does lying to an insurer. If you have finally decided to purchase the term life insurance plan of your choice, you should provide the insurer with correct details. For instance, if you purchase a plan at an age of 25 without disclosing your medical conditions with a hope that you will definitely outlive the policy period. And, the reason behind your demise turns out to be a health condition that wasn't disclosed in the form, the insurance company will reject the claim. Therefore, keep in mind to fill each and every detail about you correctly.

Payout options must be checked beforehand

There may be different payout options available from different insurers. The insurer may offer to pay a lump sum payout or a payout with regular monthly income. You can choose to be paid as per your requirement and even compare other term life insurance plans.

Conclusion

If you have anyone who is financially dependent upon you then having a term life insurance plan is absolutely necessary. It will not only assure your family’s finances in your absence but will also offer a sense of mental peace.  If you are having a hard time deciding the right plan for your family, keeping the above-mentioned points in mind will definitely assist you in taking the right decision.