Shopping online gives you many choices, but it’s hard to pick the right one if you don’t know what you need. Many people don’t know what to check for life insurance. They just look at how much coverage they’ll get and how long the policy lasts, then buy a basic plan. But looking deeper, they can find better life insurance plans with good features and benefits.
Don’t stop reading if you want to learn what to look for in a life insurance plan to help you save money and pay a fair price.
Why does life insurance matter in the UAE?
Before we get into the tips, knowing why life insurance is important in the UAE is good. Many expats have family members who depend on their income. A life insurance policy helps protect your family financially if something happens to you. It can cover rent, education, or even sending your family back to their home country.
Many insurance companies in the UAE offer life insurance plans that are cheaper than you might think. You just need to look around and find them.
Start early
The best way to save money on life insurance is to get it when you’re young. The cost is lower because younger people are less risky for insurance companies. If you wait, the price will increase as you get older or your health worsens.
Example: If you get life insurance at 25, you’ll lock in a lower rate compared to getting it at 40 when premiums rise due to age and potential health issues.
Pick term life insurance
Term life insurance is usually much cheaper than whole life insurance. Whole life insurance has a savings part, but term life insurance only gives you protection for a set time. Term insurance can help lower your payments, making it a good option if you want simple and affordable coverage.
Example: If you’re in your 30s, you might opt for a 20-year term insurance plan. This plan ensures protection during your working years at a lower cost than whole-life insurance, and it includes a savings component.
Choose the right coverage amount
It’s easy to think you need a lot of coverage, but figuring out how much you really need is important. Think about your family’s living costs, any debts you have, and future expenses. Picking the right amount will help you avoid paying too much for your insurance.
Example: If your family’s expenses are AED 10,000 per month, you don’t need a policy that pays out millions. Instead, choose a policy that realistically covers debts, living expenses, and future needs.
Pay premiums once a year
Insurance companies often give discounts if you pay your premiums yearly instead of monthly or every few months. In the UAE, some companies may give up to 5% off if you pay the whole amount at once. This can help you save a lot of money over time.
Example: Paying AED 5,000 annually might save you 5% compared to monthly payments of AED 450, which adds up to AED 5,400 over the year.
Compare different plans
Don’t go with the first life insurance plan you find. Many insurance companies in the UAE offer good rates. You can use comparison websites like InsuranceMarket.ae or talk to an insurance broker to check premiums and coverage from different companies.
Example: By comparing quotes from leading local insurance brokers like InsuranceMarket.ae, you might find a policy with better coverage for less money than the first plan you see.
Stay healthy
In the UAE, insurance companies look at your health when deciding how much to charge you. Smokers and people with health issues usually pay more. You might get a lower premium by staying healthy, quitting smoking, exercising, and eating well.
Example: If you’re a non-smoker with no medical conditions, you’re likely to pay much less for insurance than a smoker or someone with chronic health problems.
Get a joint life insurance policy
If you’re married, think about getting a joint life insurance policy. In the UAE, many insurance companies give discounts to couples because it’s cheaper for them to manage one policy for two people. This can help you save money while covering both you and your spouse.
Example: A couple might get joint life insurance for AED 2,000, while two separate policies might cost AED 1,200 each. You save AED 400 by opting for joint coverage.
Do not forget to renew your insurance policy
Always make sure to renew your life insurance policy on time. If you remember, your coverage will continue, and you may have to pay more when getting a new policy. Keeping track of renewal dates helps you stay protected and avoid higher costs later.
Example: If you let your policy lapse and apply for a new one later, you may have to pay significantly higher premiums due to age or new health conditions.
A step-by-step guide to lowering your life insurance costs:
1. Check how much coverage you need
Start by figuring out how much insurance you really need. Think about your family, any loans you have, and future expenses.
2. Get a health check-up
Make sure you are in good health before you apply. If you are healthy, your insurance will cost less.
3. Compare different policies
Use online tools or talk to brokers to find the best deals. Look for any discounts or special offers from insurance companies in the UAE.
4. Pay annually
If you can, pay your premium once a year to get a discount.
5. Review your policy regularly
Life changes, and so should your insurance. Check your policy every few years to make sure it still fits your needs and that you’re not paying too much.
What’s the final takeaway?
You don’t have to lose coverage to save on life insurance in the UAE. By starting early, picking the right type of insurance, and staying healthy, you can keep your costs low while protecting your family. Always compare policies to find the one that fits your needs and budget. For more tips on life insurance savings, get in touch with leading local insurance experts like InsuranceMarket.ae to figure out what’s best for you.
