Dubai Life Insurance

Life insurance is the cover extended to one’s life by financial institutions. It guarantees a significant amount as compensation after the passing of the insured person. Buying life insurance is one of the most important financial decisions you make in life. In the event of a disaster, the assured returns could be used to pay bills, help your spouse take care of your child’s education, carry on with the family business and so on. 

Dubai life insurance is a very essential aspect of the life of both nationals and expatriates in Dubai as it takes care of your family in the event of an unexpected calamity be it death, accident or illness. 

“What will happen to my family if I cease to exist tomorrow?” Isn’t this question on everyone’s mind and your mind too? Life is uncertain and we are only mortals. Anything can happen to us anytime and we need to be prepared for the worst at all times of our life though we carry on with the hope of living for a long time and plan many things for our future. Life insurance is one of those realistic plans you make now that would lend a helping hand in times of need much later in life.

Benefits of buying Dubai life insurance

Life insurance in Dubai is opted for by individuals who plan well ahead for a secure future for them as well as for their family. There are several benefits from buying life insurance in Dubai. 

  • In the event of an emergency such as an accident, the costs involved are compensated by Dubai life insurance. In case of death of the insured person,  the income so lost or at least a major part of the income is paid to the family so as to secure their future
  • Total protection for you and your loved ones
  • It covers all your loans and mortgages
  • In case of terminal illness, it takes care of the cost of treatment

Types of insurance plan

There are several insurance plans offered by banks and insurance companies but the most popular ones are as follows:

Term Insurance plan

This insurance plan covers loss of life and pays the proceeds of the insurance to the family in case of death of the policy holder during the term of the policy. It is also referred to as the high-coverage plan with the lowest premiums. In this insurance plan, a cover of up to 5 million USD is offered. This is the most popular plan as it involves a very affordable premium and it is taken for a specific period. 

The term of this plan may range between 1 and 40 years. It is important to note that this plan is conditional in that the premiums should have been paid regularly until the specified period before the insurance benefits can be paid to the family.

Whole life insurance plan

As is evident from the name, the whole life insurance plan is valid till the end of the insured person’s life. This plan is based on an accumulated cash value system wherein part of your contributions are invested in funds that you choose and increases in value with time.  

In the event of the policy holder’s death, the family gets an assured cash value and other insurance benefits. The premiums for this plan are generally higher but they do not increase with one’s age.

Endowment plan

The advantage of buying this plan is that even in the case of death of the insured before the maturity of the policy, the endowment insurance benefits are payable to the beneficiaries. The entire insured amount is paid to the family at the end of the term. You also have the provision to surrender the policy and get back the amount paid as premium after the necessary deductions by the company according to their rules.

Investment-linked insurance plan

This plan requires your bank account to be linked to your insurance. The agreed premium amount is automatically withdrawn from your linked bank account and invested in various investment funds that help boost your finances. This plan has a dual advantage of investment and insurance.

Eligibility to buy Dubai life insurance

Every insurance company may have different requirements in selling their insurance products. However, there are some basic rules that would qualify you to purchase life insurance.

The minimum and maximum age for buying life insurance differs with different companies. Some companies let you buy life insurance for children as young as 2 years and for adults as old as 65 years. In most insurance companies, the maximum age at the end of the policy term may be 95 years but this can change depending on the company.

You will be asked to give details such as your height, weight, your general lifestyle including your habits like smoking, drinking and illnesses if any which gives them an idea whether you are at a risk of loss of life. Your financial status will also have to be made known to the company. It is always better to be honest with all the information you give the insurance company, for any discrepancy in the facts may even lead to the cancellation of the policy depriving your family of the insurance benefits.

How to find the best life insurance package

We, at MoneyGulf, offer you our expert advice and knowledge to find the best insurance deal for you. We help you decide whether to buy term insurance or permanent life insurance depending on your requirements, preferences and your financial position.

We answer all your insurance-related queries and explain the different kinds of offers made by the insurance companies. Having our guidance will reduce your stress in finding the right type of insurance as life insurance in Dubai is a vital part of your financial planning and the most important part of your family life.