How to Purchase Term Insurance Plan at the Lowest Cost?

Term life insurance plans are pure risk protection tools that have no maturity benefit and savings component associated with them. The primary purpose of these plans is to provide financial cushioning to the family of the insured in case of any unfortunate that may lead to the demise of the policyholder. The death benefit received from the insurance policy may be used by the family of the insured to settle outstanding debts and manage the day to day expenses. 

Term life insurance plans or simply life insurance plans offer a sum assured to the nominees of the insured and charge a premium that is to be paid consistently by the provider in order to avail the services. These plans are valid for a pre-decided period ‘term’ and hence are known as term insurance plans. In case the policyholder passes away with the policy period the nominees are entitled to receive a death benefit, contrary to this if the policyholder passes away after the expiration of the policy, there is no payout form the provider’s end. 

In today’s era, the insurance market is filled with numerous providers that offer a wide variety of plans at highly competitive prices. If you are stuck and unable to figure out how to get the best term life insurance plan in the UAE, this quick read will help you. So stay tuned! 

Tips to get Term Life insurance at the Lowest Cost 

Choose the right coverage

Amidst the huge insurance market, there are numerous providers that offer term insurance plans. While purchasing term life insurance plans in the UAE buyers should lay emphasis on choosing the right coverage. If you go for the whole of life insurance plans you’ll end up paying the maximum premium as these plans are guaranteed payouts. 

Contrary to this, if you go for simple term insurance plans in the UAE you’ll have to pay a much lower amount in comparison to the whole of life plans as the probability of paying out the amount to nominees is quite low since they are covered for a fixed term. Insurance providers set up the rates of premium by looking at the probability of paying out the sum during the policy period of the plan.

Buy Online

Digitization has taken over every industry, it is omnipresent. The insurance market was majorly driven offline but with the introduction of web aggregators, the market has completely transformed. Insurance seekers should compare the price of the policy both online and offline and choose the medium that offers the plan at a lower cost. Another major advantage of purchasing term life insurance plans online is that the process is hassle-free and less time-consuming. Furthermore, buyers can compare insurance providers and plans online to select the plans that offer maximum coverage at the lowest term insurance premium in the UAE. 

Understand the Product and Recognize your Goal

Before you go ahead and purchase any insurance it is very important to carry out thorough research and planning. In order to extract the maximum benefit out of the plan, one needs to understand the various benefits and features of the plan in depth. Term life insurance plans are policies meant for the long run hence insurance seekers should be aware of the services offered by the plan. 

Options for Paying Premium

Insurance seekers can pay for their term insurance premium in four different ways depending on their ease and convenience. The major options available for insurance seekers to pay for their premium are single payment of premium, regular payment of premium, limited premium of payment. In the case of a single premium, the entire amount is paid once in the form of lump-sum, in case of the limited premium of payment insurance seekers can pay the payable amount in a particular number of years. In case of regular payment of premium insurance seekers can pay for the policy throughout the policy period. 

Limitations and Exclusions

Insurance seekers should be aware of the various inclusions and exclusions in the policy as the investment and returns on the plans are not guaranteed. Having a clear and precise idea about the inclusions and exclusions of the term life insurance plan will help you to assess the amount of coverage that is necessary for securing the future of the family. 

Choosing a Trustworthy Insurer

While purchasing term life insurance plans in the UAE buyers should prefer trustworthy insurers. You can make use of the internet to check the customer reviews which will help you to get a clear idea about the reliability of the provider. Furthermore, buyers can visit the website of the provider and contact customer service executives via chat or call-support platforms to clear off their doubts and queries. Reliable and trustworthy insurers have high CSR (claim settlement ratio) which is another factor to consider while choosing a provider.

Research, Compare and Select

The golden rule of research, compare and select is probably the best approach to select term life insurance plans at a low cost. Before choosing a particular plan or provider buyers should research the internet extensively, followed by making valid comparisons amongst shortlisted providers and finally selecting the best plan based on the price and services offered. 

Conclusion

The term insurance premium depends upon the set of various factors that include age, health status, coverage, the policy period, etc. The extent to which these factors affect the premium of the plan depends on the methodology and rating of insurance providers. Therefore insurance seekers should compare quotes from different providers and their plans to get the plan that offers maximum coverage at the lowest premium. The tips mentioned in the article will help you to reduce the overall costing of the term life plan in the UAE.