October, Friday 05, 2018
If you have children, it should be one of your priorities to plan for their financial security. There are many unexpected events that you should prepare for, including your own passing, so when the time comes you’ve got all the funds covered for your dependents.
Although the thought of leaving your family behind and them trying to survive without you and your income might sound disheartening, it’s an inevitable situation that you must prepare for. Death, among many other unfortunate events, shouldn’t necessarily mean losing everything and leaving nothing for your family.
What’s good news is that there is a way to secure your family’s future – through life insurance. Investing in a life insurance policy could give you peace of mind as you know your dependents’ expenses and education are covered.
For some, they might find buying life insurance as complicated. There are various life insurance policies to choose from and several insurance companies in Dubai are asking for too many requirements. Additionally, people who are still healthy and young do not find the immediate need to buy one. Well, it’s important to put in mind that we’ll never know what’s coming our way, and sometimes misfortune strikes without warning signs.
While it might be a real hassle at first, getting a life insurance is totally worth it. Even the process may be tedious and long, you’ll have to go through the process only once or twice because many life insurance policies are either permanent or lasts for a specified term, such as 10, 20 or 30 years, which will put your dependents at an age where they can finally support themselves.
Life insurance – rates and types
There’s a good reason to think about getting a life insurance plan at a young age. You’re likely to get a good rate for the entire term of the policy if you’re rather young and in good shape.
You might be wondering which insurance you should choose. It’s best to go with an extended term insurance if your children are still young or if you have a lot of debt. An extended term insurance can give you a low rate and a large amount. However, this insurance won’t allow premiums, which means that if you live until its expiration, you won’t get paid anything at the end. But you can always renew into a new policy best suited for your age, health condition, etc, which probably will be at a much higher premium.
Another type you can select is a convertible term policy, which can turn into a permanent one if the term ends at a higher rate, without the need to go through medical check-ups, etc.
If you want to secure the future of your dependents regardless of their ages, it’s most ideal to go with a permanent life insurance policy. This insurance plan will have a higher premium compared to a term policy but will pay the beneficiaries in full amount regardless of when the claim is made.
Explore the various types of permanent life insurance policies to know what suits your specific needs and financial abilities. It’s always recommendable to consult with financial advisors regarding these matters. If you invest in the right insurance plan, you fully know that it’s going to be all worth it.