Life insurance is an agreement between the person and the insurance company to pay a certain amount of money to the beneficiary on untimely death. With suitable insurance coverage, one can ensure the financial stability and security of the family’s future. The premium rate for the best life insurance in Uae varies from policy to policy. It entirely depends on the applicant’s age, medical history, sum assured, income, and several other factors. Hence, the applicant must do proper market research and choose accordingly. Here listed below are some different types of insurance available in the UAE.
Term life insurance:
It is a basic and affordable type of life insurance. The term insurance in Uae offers financial coverage to the insured for a specified term. If the insured person loses their life within the specified term, the sum is paid to the beneficiary. Otherwise, the amount is paid to the insured person when the period completes.
Whole life insurance:
As the name suggests, the policy offers a financial cover for the entire lifetime. Upon the untimely death of the insured person, the sum is held to the beneficiary. The advantage of this policy is the insured person can borrow or withdraw the cash as per convenience. It is due to the saving component in the policy. The premium rate paid is partly divided and saved for future purposes.
It also covers the losses of the insured person and, an advantage of this policy is maturity benefits. They provide maturity benefits at the end of the policy which is an advantage for a policyholder.
Unit linked Insurance Plan (ULIP):
It is a combination of investment and insurance. This plan is more beneficial because the premium is divided into two parts. One part of the amount goes into protecting life and the other part is invested in future wealth.
In this policy, the policyholder receives the percentage of the sum assured at regular intervals during the plan. The insured person avails the sum assured on the survival of the term. The advantage of the policy is the nominee avails the assured sum on the demise of the insured person no matter how many installments have been paid out.
Hence, consider the tips told in the post to avail best life insurance in Uae.