Safeguarding Your Family with Life Insurance in the UAE

Have you ever thought about life insurance? Yes, it may take a little planning, but it is well worth it to make sure those who matter most to you are taken care of.

A well-chosen life insurance policy can help ensure your family is always financially protected, giving you peace of mind and giving your family long-term security. If you’re starting to explore your options, there are a few things to consider when choosing the best life insurance policy for your needs.

Choosing Your Policy

Life insurance policies in the UAE vary widely. The right plan for you depends on what stage of life you’re in, your health and what your family needs most. Broadly speaking, there are two main types of life insurance coverage to consider:

Term Life Insurance

This offers coverage for a set amount of time, varying from 1 year to 30 years. It’s typically the most affordable life insurance option and is often a good fit if you’re looking for protection during key stages of life, for example, when raising children or paying off a mortgage. 

Sometimes, you have the option to convert a term life insurance policy into a whole life insurance policy, but this is largely dependent on your insurance provider and their set terms and conditions.

Whole Life Insurance

As the name implies, this type of policy is designed to cover you for your entire life (as long as you pay your premiums) and as a result, it is more expensive. One of the key things to note about whole life insurance is that the premiums usually stay the same throughout the policy, so you always know how much you’ll be paying. 

This type of policy offers a guaranteed payout to your beneficiaries, often referred to as a death benefit, which can grow in value over time.

Whole life policies also build something called cash value – think of it as a savings component that increases year by year, eventually matching the value of your coverage. Sometimes, you have the option to borrow or withdraw from the cash value if needed.

There are of course options to tailor life insurance policies to better suit your needs, as well as investment-related options. If you’d like to explore further details, we suggest contacting your insurance provider.

What Does Life Insurance Cover?

We’ve mentioned that life insurance is there to make sure your loved ones are financially secure. That’s because it provides:

• Financial support: A life insurance payout, which as mentioned earlier is also referred to as a death benefit, is a lump sum that helps replace lost income, cover daily expenses and maintain your family’s overall quality of life.
• Debt protection: The payout can also be used to pay off any outstanding debts, for example a mortgage or car loan, so your family isn’t left with a financial burden. 
• Education and future planning: The payout can help support your children’s education and their future dreams. 
• End of life expenses: Unfortunately, funeral costs and other associated expenses can be significant. Life insurance means that your family won’t need to take on any debt to cover such costs. 

Making a Claim 

Insurance providers recognise that losing a loved one is already hard enough so, making a life insurance policy claim is usually very straightforward.

If you ever need to make a claim, simply reach out to your insurance provider as soon as possible. In most cases, a claim advisor will be assigned to help you navigate the process.

Final Thoughts

Every policy and provider is different, so it’s important that you take the time to explore your options and understand exactly what works for you.

*Kindly note, this information is for general guidance only and should not be considered financial advice.