By Neeraj Gupta, CEO, Policybazaar UAE
A global pandemic, a crisis, or a recession can be faced by anyone at any age because we can never predict the future. Thus, there’s always a need to protect the people you care about. The best way to financially safeguard the people dearest to you is to buy a Term insurance policy as soon as you can. But, don’t worry because it’s not too late if you don’t already have it as you’re eligible to buy a Term Insurance plan for as long as you’re between 18 and 65 years.
Term insurance plans offer financial stability in the unfortunate event of your death, disease, or disability. The sum assured your beneficiaries will receive from your Term insurance will make up for the loss of income and will pay off any outstanding debts in case you die of accidents, critical illness, or happen to meet any disability such as loss of limb etc. It is one of the easiest and most cost-effective ways to provide you and your loved ones to build a financial nest that will protect them in your absence or turbulent times.
Here’s the importance of Term insurance at every stage of your life:
Term Insurance in Your 20s- In your 20s, you’re a young and unmarried adult who has limited liabilities and responsibilities. Therefore, buying a term insurance plan is the perfect choice for you. The best part about buying term insurance at this stage is that it would help you get a larger cover at a lower premium. Also, the premium paid towards the policy will not increase with age as it is locked for the entire duration of the policy.
Example – In your 20s a few of you might have debts to pay off for an education loan. God forbid, if something happens to you, a term insurance policy will help pay off your debts, or else the entire burden of re-paying the education loan would fall on your parents in your absence.
Term Insurance in Your 30s- By 30s most get married and have children. Though by now your income too has increased considerably from when you started your professional life but simultaneously your responsibilities too have increase manifold. You can’t just rely on your monthly savings as they aren’t sufficient to fulfill the financial necessities in the future. At this stage, you have to take care of your children and their education, your parents too might become financially dependent on you. Therefore, this is the time when you should think about buying a term plan so that your family’s financial future is protected even when you are not around.
Term Insurance in Your 40s- During your 40s, you usually have long-term debts like a home loan, car loan, etc. Also, there are other several responsibilities of children’s higher education, retirement planning, etc. Thus, it is advisable to buy a term policy with a large cover to secure your family’s future.
Term Insurance in your 50s- If you’re in your 50’s and still have not purchased a term insurance plan, you should not delay any more. Even your health can take a severe hit in the late 50s, and you are prone to fall sick often. Being the sole earning member of your family you might have financial debts to pay off or your children might pursue their higher education abroad. As parents, you will never want them to drop off their plans in case of your absence.
Term Insurance for Senior Citizens- A few years ago, it was difficult for senior citizens to buy Term insurance in the UAE. While today people above the age of 60 years can even avail the benefits of the term plan. If you think buying a Term insurance for senior citizens is waste of money, it’s not because it can be helpful to protect your spouse after death or pay off any outstanding financial liabilities. However, for this Senior citizens will need to have a clear medical record before purchasing the policy.
Step into a secure future with Term insurance cover and lead a stress-free life. In case, you’re not around or happen to meet any uncertainty your loved ones will not have to step -back to fulfill their dreams and aspirations due to lack of financial support.