Tips to help you make a smart Life Insurance decision
Life Insurance is one of the most essential things in life. It might also be the one thing you might be putting off. Opting for life insurance UAE is a life-long commitment, a one-time decision that you have to stick by all your life. And top that off with confusing terms and mentions of unforeseen circumstances, life insurance seems to be an overwhelming subject to deal with.
But the truth is, unexpected does happen and it pays well to prepare for it. This post offers tips on buying life insurance so you can make a wise decision for yourself.
a. Find your purpose
Life insurance is designed to help your family, who depend on your income, with finances in the unfortunate event of your death. It can offer them a new lease on life, whether it’s paying for education, help retirement or pay off mortgages. If these are the aims that you intend to have in future for your family, then you should consider getting life insurance.
b. Age is more than just a number
It’s a good idea to start young, because the younger you are, the cheaper your life insurance will be. Because the risk of illness and death is high as you grow old, you will have to shell out more to get a life insurance then.
c. Determine your coverage
It’s important to know the amount you would need to be covered for to avoid the risk of being underinsured. While there are different tools to find a ballpark figure, the best way is to consult an insurance advisor.
d. The term tale
Though all policies mean to provide for the family after the policy holder’s death, there are different types of life insurance. Term life insurance policies cover a defined period, while whole life insurance covers you till you are 95 years of age. The premiums also differ according to the term of insurance.
e. Compare it all
Analyze each policy offered by life insurance companies in UAE for their coverage, price of premium, duration and benefits. Talk to an insurance broker, who would have knowledge of life insurance quotes from different companies, to make an informed decision.
f. Understand the finer print
Take the effort to understand what the documents say. Consult insurance advisors who would not only explain the process of claims and exceptions to insurance, but also get you the best coverage and best price.