Looking for a Life Insurance? Helpful Tips on What to Do Next

In Dubai, while health insurance is mandatory, residents are not required by law to insure their lives. But an ever-increasing number of UAE residents are recognizing the importance of not adding the extra burden of unpaid debts, loans and mortgages, and concern more about their future finances and they are therefore seeing the importance of buying life insurance.

Buying life insurance in the UAE is not without its pitfalls, and it is fairly easy to tumble into one of those pits. Mistakes can lead to such situations where the expected payout gets cancelled, or it can end up far less than one has imagined. It also might not cover all the angles, or meet all the needs.

6 Tips for buying life insurance in Dubai

The following tips will help put you on the right track in finding the right life insurance in Dubai:

  • Get the right advice and guidance 

Pick a qualified financial adviser or visit InsuranceMarket.ae to help you determine which type of life insurance you will need to handle any outstanding debts, loans and mortgages, as well as protect your loved ones from a dire future. The financial adviser will carefully take into account the intention why you’ve decided to take out life insurance, your current financial situation, and an estimation of your future financial status, and will suggest the amount of cover you should take out.

  • Choose the right cover, not the lowest price 

Research the types of life insurances available. The premiums charged for different kinds of cover will vary considerably, and so will the cover.

With a Level Term, a payout is only made when the insured person dies during the policy period. Decreasing Term, in addition to being restrained by a specific premium payment period, also sees the sum insured decreasing in size as time progresses. Both of these are cost-effective, but the premiums paid are lost if the insured outlives the policy period. The whole of Life policy pays out the sum insured whenever the insured person dies, but its premiums are higher as compared to the Term or decreasing term policy as the payment period is limited.

Always ask for quotes from reputed insurers or visit InsuranceMarket.ae, bearing in mind that the lowest insurance is not always the best choice.

  • Read and Research Everything

Study the insurance policy you’re considering to make sure it covers everything you want and needs to be insured and that you understand what is excluded, and what charges are included.

  • Why are you looking for life insurance? 

Consider whether you want the insurance purely to pay off your mortgage and any other loans, or whether your main aim is to ensure your family can also live in reasonable comfort, and still meet the extra costs of child care and/or tertiary education for your children.

  • Don’t delay

Don’t put off buying a life insurance policy in Dubai. The younger and healthier you are, the lower the premium will be.

  • Don’t skimp on your coverage 

Higher premiums may be tougher on your budget, but when the cover is too low, the payout may not meet the needs. A rule of thumb is to go for a cover that’s able to replace the highest earner’s income or at least sustain the current standard of living.

Also consider add-ons like Critical Illness Coverage, to protect you and your family if you cannot work; waiver of premium insurance to cover you if sickness or an accident makes it impossible to pay the premiums for a while.

How InsuranceMarket.ae Can Help You

Insurancemarket.ae can help you find your way through the haze and maze involved in finding the right form of life insurance for you. Working as an expert advisor on your behalf, this online site takes an independent and unbiased approach to the varied selection of policies available for life insurance in the UAE.

Visit InsuranceMarket.ae before deciding on life insurance, and do so before signing on the dotted line. You will be glad you did.

About Author

Rachel Al Mughairi

About Author

With over 34 years in the international insurance industry in a variety of senior management roles, and as holder of the Diploma in Insurance from the Chartered Insurance Institute, Rachel surely knows her insurance! With experience in London, continental Europe and the Middle East, Rachel is here to share her knowledge and help you understand more about insurance products in this easy-to-understand series of videos and blogs.