Life and Critical Illness Insurance
What is term insurance and why I should buy one?
Term Insurance is an affordable and popular form of Life Insurance.
What is Term Insurance?
Term Insurance is a simple and the most affordable risk-cover plan having no cash surrender or maturity value.
It covers you for a specific number of years and pays out the Sum Assured in the event of death during the term of the plan.
It is also the most affordable form of life and critical illness insurance. The regulatory changes in 2020 have made term insurance in UAE more affordable.
Term life insurance is an efficient risk management tool. You can use it to transfer the risk of loss of income from you to an insurance company that can absorb the risk and pays out the claim in exchange for a very small regular premium.
This risk transfer mechanism works efficiently because there are thousands of people like you who pay their premiums every year, helping the company accumulate a large corpus.
Insurance Claim proceeds are typically much smaller than the total premiums collected in a year. So the company can easily pay them from the accumulated corpus, and the surplus is invested for the future.
Until a few years back, people were mostly keen on buying endowment plans, which paid back the premiums and a specific bonus on maturity.
Term Insurance has become popular of late, thanks to the awareness created on the Internet by fellow bloggers, Financial Forums, and Social Media.
Before we look at the list of Top 5 Term Insurance in UAE, it is essential to understand why you should consider buying Term Life Insurance.
Now that we understand the scope and benefits of Term Insurance in the UAE, we can now look at the Top 5 plans from various insurance companies in the UAE.
First on the list is the term insurance plan from Zurich International Life. This plan provides a cover for a maximum term of 35 years and covers up to age 80. Zurich Term Insurance provides the following riders on its term insurance;
Click here to learn more about International Term Assurance from Zurich International Life.
Next on the list is the Live Life term plan from MetLife UAE. It provides financial protection for you and your family when you are unable to provide for them due to critical illness or death. The maximum policy term is 30 years and the maximum age of cover is 85.
This plan gives you two options to choose from;
The live life plan also has three premium payment options to select from
In addition to the usual riders, Live Life provides a Unique rider called Forever Plan.
It provides the insured with a lifetime monthly income in case of Permanent Partial Disability or Permanent Total Disability resulting from an Accident or Sickness. (Minimum guaranteed period of 20 years)
Live Life also provides a free second medical opinion service and a medical discount card.
International Protector Middle East is an award-winning Term Insurance plan from Friends Provident International. It provides you with three different cover options to choose from:
The premiums for IPME are very affordable, and they start at $17.50 per month.
Like Live-life, IPME also provides limited and regular pay premium payment options.
Friends Provident International (FPI) also provides the world-class second medical opinion service provided by ‘Best Doctors®’. This is a free benefit on their International Protector Middle East (IPME) plan.
Click here to know more about IPME from FPI.
Oman Insurance is one of the oldest insurance companies in the UAE, operating since 1975 and with a Financial Strength Rating of A (Excellent) for 2020. Lifeguard is a term insurance plan offering cover for residents between the ages one to 80. It also comes with the level and decreasing term options.
The unique feature of this plan is that it does not differentiate on premium rates for smokers or nonsmokers. This means the premium rate for smokers will be relatively lower.
The following are the riders on Lifeguard;
Lifeguard also offers single and regular premium payment modes.
SALAMA – Islamic Arab Insurance Company is a leading provider of Shari’ah compliant Takaful solutions around the world. Hemaya Plus is a Term plan with the following unique benefits;
It is an ideal solution for residents looking for a Sharia-approved protection plan.
Click here to know more about Hemaya Plus Family Takaful Plan from Salama.
As an Independent Financial Advisor with more than 15 years of experience, I can help you choose the best life insurance in UAE, after considering the various options, your protection needs, and your budget.
Arrange a free initial consultation for a detailed report on your protection needs and appropriate recommendations.
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Term Insurance is an affordable and popular form of Life Insurance.
Hemaya Plus is a Life Takaful / Islamic Insurance Term Plan with unique riders from Salama - an...