Posted on Nov 28, 2019

4 Instances Wherein You Will Benefit From a Life Insurance Policy

Father carrying his son on his shoulders, facing the sunset

Life insurance is crucial because it is the financial defense that will help protect your family’s future. It does this by presenting financial security and a secure income for your household in case of illness or death, covering debts such as credit cards and mortgage, assisting your family in the case of medical expenses, and guarding your family’s assets. 

Want to know more? Read on to discover four crucial instances wherein you will benefit from having a good life insurance policy in place. 

1. When you are getting a mortgage 

A life insurance policy in Dubai will aid you in achieving your long-term goals, such as purchasing your dream house for your family. This is because the right life insurance policy will provide you with various investment options that pay dividends. Therefore, if you are considering buying a home with a mortgage, you will benefit from having a life insurance policy that covers your mortgage debt. This will protect the interest while also enabling you to avoid the need to obtain extra mortgage insurance. 

If you still have outstanding debts at the time of your passing, your family will have to pay these. Unfortunately, this means that everything you worked for will be lost, and your heirs will not receive everything you want them to. To prevent this devastating scenario, opt to purchase a life insurance policy that (at least) covers the amount of your mortgage. Then, in the event that you pass on during the policy coverage, your family will receive the life insurance payout to pay off the mortgage

2. While you are young and healthy 

When you are still young and in the pink of health, the last thing you want to think about is purchasing life insurance; however, this is actually the best time to get it. Life insurance policies get more expensive the older you get, so by opting to get insurance while you are young, you will not need to pay a significant amount when you do need it. Generally, at this age, you are still building your assets and are not in a position to cover the costs of your obligations (mortgage, college funds, car payments retirement planning) if you were to encounter disruption to your income.

In the UAE, you want to get life insurance while you are young so that you are eligible for the best price. While you may be completely healthy at the moment, when you abruptly encounter an unexpected event or critical illness, you will benefit from a life insurance policy. Life insurance policies are intended to cover uncertain events, so it is never too early to protect yourself. 

3. When you have a family 

If you are considering starting a family, you should also be considering purchasing life insurance. This is because the sooner you buy life insurance, the cheaper the rates and the more protected your future children will be

Alternatively, if you are a single adult, you may still want to consider getting life insurance as it will help pay for your funeral costs or aid you in supporting an elderly parent

If you already have a family, it is essential that you purchase life insurance. You have people who depend on you, which is why you need to make sure they will be covered if something goes awry. Keep in mind that you do not only want to include people who work outside the home, but also the person who works in the house because having to replace someone who does domestic chores, home budgeting, and childcare can create serious financial struggles. 

4. When there is a death of a breadwinner 

If one spouse provides most of the income for the entire household, then it is essential to get a life insurance plan to ensure that the significant other is left in a more stable financial position should the breadwinner pass away. After all, the purpose of life insurance is to protect the lifestyle of your family and dependents upon your death. 

Even if you have life insurance provided by your employer, you still want to have your own policy because you do not want to rely on your company’s life insurance. If you were to lose your job or switch to a new firm, you would lose that policy. As policies get more expensive as you get older, you want to be purchasing a backup policy to guarantee that you are covered no matter what happens. 

Similarly, if you own your own business, you want to purchase an additional life insurance policy that covers your business obligations. This is especially crucial if you have others who rely on you. 

Final Thoughts

There has never been a better time to get life insurance than right now. By purchasing a policy, you can have peace of mind knowing that you and your family are covered in case of unexpected events. To ensure you are getting the right policy for your specific needs, at the right price, make sure to get an best insurance deals. At Compare Dubai, we help you plan today for a better future.

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