There is always an excitement in the sector of life insurance in Dubai which is likely to be spotted by expats. According to reports, this sector is gaining importance at an annual growth rate of 10%. And there are over 50 insurance companies in competition that offer great plans and deals. If you have made up your mind for buying a particular life insurance deal, then read on the following to know about the things that you must consider.
- Consider your options: you must consider the basic plans of life insurance before opting one. These include
- Level Term insurance – This is an expensive insurance policy (not more than whole of life term) in which lump sum is paid only if the holder dies during the payment term.
- Whole of Life Term insurance – This is the most expensive types of all the three where the lump sum is paid out whenever the insurance holder dies. In this policy type the premiums can be paid up to the age of 95.
- Decreasing Term – this policy is cheaper where the lump sum is paid out only if the policyholder dies during the payment terms. In this policy the premiums are paid only for a fixed term and the lump sum amount decreases with the maturity of the policy.
- Link your life insurance to your mortgage: you must consider linking your life insurance policy with your mortgage payments. This will help your family to afford and continue paying them in case of your death.
- Decide for a joint or single policy: you can consider for a joint life policy, which although are cheap, but pay out just once. That means in the event of your death, your partner will be paid out but without any future cover. You can therefore consider a separate life insurance policies for you and your partner, which although costs more and offer a flexible cover.