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Term Insurance in the UAE 2022

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Term insurance is a form of life insurance that provides coverage for a specific period of time. During the term of the policy, if the insured expires, the benefits of the policy will be provided to the candidate. It is a life insurance that provides coverage for a specific period. There are different term plans designed to cover the insurance company and provide security for the family in case of doubt. For the beginning and continuation of the insurance term, the insured must pay the premium in accordance with the chosen plan. There is a fixed amount of coverage provided over the life of the insurance.

Read more: How to get Health insurance in the UAE?

Do you need term insurance in the UAE?

One of the most important decisions in life is planning for the future of the family. When you buy insurance, you are ensuring the future of the family, especially in countries like the United Arab Emirates, where the cost of living is very high. The importance of Takaful has been recognized in the United Arab Emirates. These are the reasons why you should purchase life insurance in the United Arab Emirates.

  • Term life insurance is less expensive than other life insurance policies.
  • In the event of sudden death, the family can obtain financial support.
  • Policy benefits can be issued based on the insured's assignment, either as a one-time payment or as monthly payments.
  • Annuity amounts are relatively lower and the amount saved can be used for the child's future education, asset purchases, retirement plan, and more.
  • To increase the base insurance, the term insurance can be added to other riders. These passengers have coverage for permanent disability, serious illness, fatal accident and other coverage that can be purchased at an additional cost.

What does term life insurance include?

The following are generally covered by term life insurance.

  • Family Takaful - Family Takaful is offered as internal protection against chronic diseases offered by some insurance companies.
  • Protection of dependents: if there is any disability that results in the loss of monthly income, since the insured is the only person who wins in the family. Depending on the term of the insurance, the policy pays a lump sum on a regular basis. The amount can be used to pay expenses.
  • Unexpected Event Payments - Family members can get the financial benefit in the event of unexpected events, such as sudden death. Policy benefits are provided to family members.
  • Financial benefits: the amount made available to candidates or beneficiaries can be used to pay for unavoidable major expenses such as rent, utility payments, mortgage payments, children's higher education expenses and more.

What are the types of term insurance in the UAE?

In the United Arab Emirates, there are different types of term insurance. Depending on the requirements of the insurance company, benefits and types of insurance are available.

  • Transferable Term Insurance: With a limited number of years, this policy is offered to the policyholder and after a specified period it can be converted to full life insurance. It is not necessary for the insured to present any type of medical examination during the transfer time. This is the main advantage of this term insurance.
  • Increased Term Insurance - As time increases, the policyholder can increase the death benefit under this policy. During the entire term, the amount of the insurance premium may or may not be the same.
  • Reduced term insurance: up to a fixed percentage, the guaranteed amount decreases each year. The premium payment will remain the same throughout the term. It is completely contrary to incremental term insurance. Insurance premiums are lower compared to the traditional plan.
  • Tier Insurance Plan - A fixed claim amount is paid and can be claimed in the early stages of the policy or at the end of the policy term. However, the premiums will be the same and there will only be a one-time payment.