All people have distinct motivations for purchasing insurance in the UAE. However, the main consideration in choosing insurance is ensuring yourself and your loved ones financial stability.

People have started to see health insurance as a substitute for life insurance, which is a fairly prevalent trend that has been observed in recent years. The primary reason for such a move appears to be a lack of awareness that life insurance and health insurance are not substitutes for one another. The two insurance plans are meant to work best together.

The fact that there are so many insurance companies in the UAE makes it simple to become confused about the different forms of coverage, which is another factor. Life insurance comes in a variety of forms, including endowment and term, and there are also non-life insurances, including health insurance. 

It becomes vital that we first comprehend both types of insurance plans to have a better knowledge of why one needs both life and health insurance.

Let's find out in this blog whether you purchase life insurance even if you have health insurance.

Why Do People Need Life Insurance?

Providing the insured with a life cover is the primary goal of a life insurance policy. A policyholder chooses life insurance when he wishes to guarantee that his family can maintain their current standard of living even after the policyholder's death. 

This kind of insurance company in Dubai offers the beneficiaries cash advantages that might take the place of the policyholder's salary for the household.

Why Do People Need Health Insurance?

Health insurance Dubai pays for the expenses related to the policyholder's illness or medical problems. This plan does not offer life insurance and is subject to a total sum assured. It implies that while your medical expenses are covered, there will be no reimbursement if the policyholder passes away.

It is evident from the stated objectives of both types of insurance coverage that, contrary to popular opinion, they are quite unlike one another.

Top 6 Reasons To Buy Life Insurance

With the knowledge that you have left a legacy, life insurance can provide you with long-lasting peace of mind. It can provide a useful mix of advantages, many of which are guaranteed to-pay claims so that you and your loved ones are aware of exactly what you're getting. 

Naturally, maintaining the policy in place and paying the premiums requires a long-term commitment from you. Several of the most popular justifications for purchasing life insurance include:

Assurance of safety

The life insurance benefit of a whole life policy serves as a safety net for your finances if you have dependents such as a family, a company, or others. Your beneficiaries will be given a lump sum payment that is assured to be paid in full when you pass away.

It is a safety protection to know that you can depend on your loved ones to be there for you in times of need.

Replacement Of Income

What would happen to your family if you suddenly lost your source of income? By purchasing whole life insurance, you may ensure that your loved ones have the resources necessary to:

Mortgage Payment.

Able to pay for daycare, medical care, or other services.

Pay for tuition and other costs.

Get rid of personal debt.

Maintain a family business.

Tax-free Advantage

Every amount you give to your beneficiaries will be theirs to keep and enjoy. It is because the life insurance policy benefit is often frequently transferred to tax-free under federal law.

A guaranteed rise in monetary worth

As you make premium payments, your whole life insurance policy accrues cash value that is guaranteed to grow tax-deferred and can help you achieve several financial objectives:

Boost retirement income and invest in the education of a child or grandchild

Settle a mortgage

Safeguard current assets

Create an emergency fund.

Income potential

You will be qualified to get profits if you purchase whole life insurance through an insurance broker in Dubai which is one of the advantages.

When dividends are issued, even if they are not guaranteed, you can accept them in cash, use them to lower your premiums or use them to purchase paid-up supplementary insurance that broadens your coverage and improves your cash value.

Critical Illness Protection and Multiple Coverages

Insurance policies can be modified in several ways to suit your unique requirements. You may utilize riders to pay for premiums if you become handicapped, add more protection without further underwriting, use a portion of your face amount to cover chronic conditions or add coverage for your kids for an additional fee. Your insurance broker in Dubai and across the UAE can assist you in determining which of these riders is best for you.

The Importance of Having Both Types of Insurance in Your Portfolio.

Both medical and life insurance policies provide unique benefits to the policyholders, making it pretty clear that a person needs both types of insurance in their portfolio. Analyzing these policies reveals that those who support their families as the main source of income must choose a life cover. 

The policyholder must make sure that the type of coverage they select is sufficient to pay for their living expenditures as well as their responsibilities.

On the other side, health insurance is available. Anybody can have medical emergencies at any time. Our nation's medical industry is constantly expanding, thus healthcare is not inexpensive. Any medical emergency has the potential to put your money and you under a great deal of stress. People must have adequate health insurance because of this.

In A Nutshell

It should be obvious that while health insurance keeps you stress-free while you're alive, life insurance's purpose is to support your family financially in the event of your passing. The best course of action is to speak with your financial advisor if you haven't done so previously and make arrangements for the essential coverage that best meets your needs.

Purchasing from the finest and top health insurance companies in UAE is perhaps the easiest and clearest approach to protecting your loved ones from times of financial instability when you aren't around to take care of their requirements.

Never forget that it's never too late to protect and secure your loved ones from unexpected events, and the finest life insurance in UAE is the instrument that can help you do so.

Want to connect with us

We would love to assist you on this journey. Drop us your details and let us help you.