Life insurance policy is a policy that protects an individual or family from sudden unforeseen events like the death of the insured. This involves contracts between the individuals and company. It provides financial stability to your family by looking after the illness and death of the policyholder. This is a protection cover that guarantees and sustains your life. There are many beneficiaries attached to life insurance. There are also certain exclusive features in it. For this, the insured pays a premium amount to safeguard the family of the insured. These rates are fixed according to the age, medical history income etc of the policyholder.
UAE possesses a good deal of life insurance policy plans like endowment plan, whole life insurance plan, term plans and many more. Life insurance is basically an understanding between the insured and the insurer where the insurer consents to pay a specific measure of death advantage to the recipient upon his/her passing.
- Passport size photographs
- Emirates ID
- Passport with UAE residence visa
- Address proof
If requested, you will have to submit additional documents as well
Types of Life Insurance in Dubai and Across UAE
UAE has a wide variety of Life insurance. They are;
Term life Insurance
The term insurance is one of the simplest life insurance. It protects your family and loved ones in the most affordable amount. This provides lifelong financial stability and security to your family members for a specified term of years. A death benefit is paid if the insured dies in this term.
Whole Life Insurance Plan
This policy prevails for the entire life of the insured. The sum can also be partially withdrawn if necessary.
Pension requires relaxation of your mind and body. Opting for retirement or pension plan, provides you a regular pension income later. This plan provides financial security after your retirement.
If the insured lives until the maturity date, he/she will get a lump sum amount. These are known as traditional insurance plans. In case of unforeseen death nomination is also an option provided in this policy.
Unit Linked Insurance Plans (ULIPs)
Unit linked insurance plans serve a dual purpose for the policyholder. On the one hand, it is a hedging tool to protect the near and dear once against financial trouble arising from the death of the policyholder, and on the other hand, it is an investment tool. The policyholder can invest certain sections of the insurance premium fund in an asset class and generate capital growth for the same. The policy cash value will change based on the net asset value (NAV) of the concerned investment asset portfolio.
Money back policy
If you take this policy, you get a sum in regular intervals. The balance sum amount can be attained by the insured after the maturity of the period. If the insured dies, the nominee gets the full amount.
How Life insurance policy works in UAE?
- A monthly coverage is provided by the insured to the insurer as a monthly premium amount.
- The insurer provides a guarantee for the agreement for financial stability of the family of the insured in case of death or other serious threats.
- The insured gets maturity benefit when the agreement is matured. This may differ according to the type of the policy.
Benefits of Life Insurance
The benefits of life insurance can mould your life into a positive direction. The benefits are as follows:
- Health Expenses - It provides full coverage on your hospitalization beginning from admit to discharge from hospital. This covers your critical illness treatment
- Range of Life Insurance Plans - According to the needs and demands of individuals, various customized insurance plans are available
- Security to Family - The insurance plans safeguards family and provides financial assistance after the demise of the insurer
- Guaranteed Income - There is a provision of guaranteed saving amount to the family. This ensures beneficiaries on the demise of the insurer
- Peace of mind - Each one of us are scared of a future unforeseen event but life insurance can guarantee support for the family and hence can be peaceful
- Loan Feature - There is a loan facility also available in the life insurance plans
- Promote Savings - Some insurance policies provide bonuses whereas some give sum of money after the maturity period of the insurance. This can save money as well
Factors That Affect Life Insurance Premium
Life insurance provides safety and security to the family member and loves ones of the insured in case of his/her ultimate demise. A premium amount is paid to the insurer usually on a monthly basis.
Mortality, age, and health status - The general payable premium of life insurance plan in UAE is controlled by the endorsing procedure. Aside from this a plenty of components, for example, the age of the candidate, clinical history, occupation, yearly salary, way of life and innate sicknesses assume a vital job. There is no pre-characterized formula utilized by insurers to compute the premium of a life insurance plan UAE, rather the insurance provider evaluates the level of risk related to the life of the policy holder. Senior citizens are liable to pay higher premiums since they are bound to become sick constantly in contrast with young individuals.
Expenses and marginal profits - The payable premium of Life insurance plans differs with each other. It mainly views the costs brought about in the endorsing of the strategy. The last payable premium that the insured pays is a mix of expenses and risk factors, operational cost and profit margin.
Requisite Elements - Contingency charges are a minor factor that affects the insurer to a high degree. This is hence an add on to the life insurance premium.
How to Claim a Life Insurance in Dubai?
Step 1 - Consult the insurer regarding the claim as soon as possible. The details required at this time would be roughly, name of the insured, policy number, date of birth, place of death, cause of death etc
Step 2 - Submit all the documents to the insurance provider in order to acquire the claim. This would roughly include original documents of the insurance agreement, death certificate etc.
Step 3 - Verify and process the claim documents and once it is done, the claim can be proceeded
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