Safeguarding Your Loved Ones in the UAE: Understanding the Relevance of Life Insurance

Rajat is an Indian expat residing alone in the UAE for work while his family remains in India. Every month, he sends a certain portion of his monthly income home so that his wife and children can continue to live an economically stress-free life. However, one day Rajat passed away in an accident. His family back in India could no longer lead a financially stress-free life and his wife had to ultimately start earning to make ends meet. 

Do you see what went wrong over here? Rajat had no life insurance policy in place that could have helped his family maintain a financially stable life. A life insurance plan is an important element of your life that ensures your and your family’s overall financial well-being. It ensures that a death benefit is paid out to the beneficiary in case a sole breadwinner like Rajat passes away unexpectedly. 

This type of insurance coverage ensures that the deceased’s family continues to maintain a similar living standard as before. So if you are still confused about how a life insurance plan can financially assist your family in your absences, let’s read the forthcoming section of this write-up. 

Ways in Which a Life Insurance Plan Will Protect Your Family

Buying a life insurance plan makes a huge impact on your family’s life – whether you are the sole breadwinner and caretaker of your family here in the UAE or responsible for sending money back home. With a life insurance plan, the nominee receives a lump sum in case of the policyholder’s demise, which helps them continue living the same lifestyle as before.

Here are the ways in which a life insurance cover can help your family and help them achieve their dreams irrespective of the circumstances –

• Financial Stability – This is indeed the foremost purpose of buying a life insurance plan. The death benefit disbursed provides your family with a substantial sum assured as per the terms and conditions of the policy, helping them handle the finances efficiently.

• Creates a Lifetime Income Stream – When you buy a life insurance plan, you can spread the sum assured distributed uniformly over several years. This is a smart and effective way to manage the claim amount and estimate your family’s annual income. This way, the beneficiaries will continue to get annuity payments in the form of an income stream.

• Repay Debts – In case the insured individual borrows from a bank but passes away before its full repayment, their dependents pay the outstanding loan amount as per the bank’s policies, which can add extra financial stress to them. This is where a life insurance plan comes into the picture. In such cases, the insurance provider will help the dependents settle the remaining debts on behalf of the insured, thus, saving their family from paying the remaining debts out-of-pocket. 

• Savings for Children’s Future – Rajat had children who required funds to pursue their higher education in an Ivy League college. However, they cannot afford it anymore since his demise. Had he taken a life insurance policy, however, the sum assured could have helped the children in financing their further education. A life insurance plan like a family protection plan covers your children’s educational expenses and life milestones. 

• Covers Critical Illness Expenses – If the death of the insured is due to a terminal illness, a life insurance plan helps the family to cover the substantial costs of the medical expenses. 

To Conclude – Secure Your Family!

A life insurance policy is one of the most affordable ways to financially secure your family during rainy days. If you are the sole breadwinner of the family, it becomes even more important to get a life insurance plan to ensure a steady income flow even in case of your absence. 

When an insured individual passes away, the insurance company gives a lump sum or pays the sum assured at regular intervals to their beneficiaries and helps them lead a stable financial life (and save for the future in some cases too). With a life insurance plan, one can have much-needed peace of mind in adverse circumstances.