Term life insurance for spouse in the UAE
Written by Lawrence
In this blog we’ll share with you all that you want to know about term insurance for spouse in the UAE and term insurance features.
What is spouse term insurance?
As the name suggests, it is term insurance policy for your spouse. The policy provides an opportunity to insure oneself and their spouse through a single policy. These are comprehensive policies that offer multiple benefits to both the husband and the wife. The idea of this insurance is to give due respect to your spouse and acknowledge the fact that their life is really precious to you. In this way, a term plan for husband and wife will ensure that the both the members are protected, even if one doesn’t have an individual policy.
This type of insurance provides pay-out on the death of either of the two policyholders. And in some cases, it provides a regular income to pre-mentioned living family members. There are certain spouse term insurance plans that also cover critical illness, dismemberment, accidental death, and permanent disability.
For working couples, term insurance plans are available as joint insurance plans, offering extensive coverage against untimely death and other life threats. Earlier, the term plans were mostly opted by the working male member of the family. Earlier term insurance was opted only by working males in the family. But not times have changed and females are also working and making a living for themselves. That’s why it is important that as a couple you take spouse term insurance plan. The insurance providers in the UAE offer joint term insurance plans for husbands and wives. Being a joint plan, this insurance is affordable and easy to manage. It also offers various add-on riders that couples can opt for to customise their protection plan by paying an additional premium.
Key features of spouse term insurance in UAE
Here are some of the main features of spouse term insurance that you should be aware of –
Greater benefits
In this insurance, the nominee can avail higher death benefits if any of the policyholders dies. However, you need to ensure that the term plan provides coverage for both spouses instead of just one.
Convenience in managing the policy
If you have two separate policies for yourself and your spouse, it can be a slightly challenging task. All the paperwork and remembering to pay premium for both the policies can be a daunting task. Instead, if you have a single policy for yourself and your spouse, it is much easier to manage.
Waiver of insurance premium
One of the important reasons for preferring a spouse term insurance plan over a separate plan is the premium waiver. In the event of the untimely death of one of the spouses, the other policy member doesn’t need to pay premiums to keep the term plan active.
Cheaper premium
These plans are the cheapest among all the life insurance plans in the UAE. However, buying separate life plans is not a cost-effective option since you need to pay premiums for yourself as well as for your spouse. With spouse term insurance, both you and your spouse are covered in the same policy. You can avail of several add-ons and coverages with a nominal increase in premium.
Who should buy spouse term insurance?
It is ideal for young married couples. Due to financial constraints and fewer savings in comparison to established families, both spouses need to work to meet their expenses. In such cases, it is imperative to choose affordable term insurance plans with maximum benefits.
A joint plan not only provides a larger sum assured but also gives them the flexibility to pay their insurance premiums. The plan will protect both the husband and the wife against death and disability while also securing their beneficiaries (children and dependent family members).
If you are planning to start a family, then here’s all you want to know about maternity insurance in the UAE.
Benefits of spouse term insurance
The main benefits of spouse term insurance UAE plans are –
Cost effective
It is a more cost effective and affordable option to get this insurance, rather than getting individual term insurance policies for the husband and wife. Additionally, with a joint term insurance plan, the non-working spouse can also avail of a term plan simultaneously with his/her working counterpart.
Sum assured is higher
The assured sum is higher as compared to separate plans for husband and wife.
Premium waiver
Separate term insurance plans for husband and wife do not offer a premium waiver if one of the spouses dies. And to keep the policy active, the living policyholder needs to continue the premium payment. While in the case of a spouse term insurance plan, if one policy member dies, the other member gets a premium waiver.
Less paperwork
There is less paperwork that needs to be submitted and taken care of, as compared to when you get individual policies.
Best spouse term insurance companies in the UAE
You can check out the plans from the following insurance service providers to choose the best plan –
Insurance provider Plan name Alliance insurance Solidarity – New Joint Insurance Plan LIC International Double Cover Joint Life Insurance AXA Insurance Simple Life Zurich Insurance International Term Assurance
Why buy term insurance early?
Here are some factors that can increase the premium cost and that’s why you should consider to buy this insurance –
- The premium is decided by your age. So, it all depends on what age are you buying the policy. The more the age for your spouse, the higher would be the premium that you would have to pay.
- Health insurance policy premiums can increase between 4 – 8% each year after your birthday.
- The policy application could be rejected or premium cost can increase by 50 – 100% if you or your spouse (for whom you are getting the policy) gets any lifestyle disease.
In conclusion, opting for a spouse term insurance plan not only provides comprehensive coverage for both partners but also offers discounted premiums and additional benefits such as premium waivers and critical illness cover. This makes it a practical choice, particularly for young married individuals with nuclear families, ensuring the financial security of their loved ones during unforeseen circumstances.
FAQ
Spouse term insurance offers a payout upon the death of either policyholder, with some plans extending to provide regular income to surviving family members. Additionally, certain spouse term insurance policies include coverage for critical illness, dismemberment, accidental death, and permanent disability.
Rates vary among insurance providers, but you can anticipate premiums starting as low as USD 50 per month for a fixed duration tailored to your requirements.
Term insurance: Offers coverage for various situations like untimely death, critical illnesses, and disabilities. It pays out a death benefit to the policyholder’s family upon their demise. Life insurance: Provides financial security to your loved ones in emergencies and helps grow your wealth over time. It supports lifelong goals and post-retirement life. Though it usually has higher premiums than term insurance, it offers long-term protection.
Death by suicide, self-inflicted injuries, driving under the influence of drugs or alcohol, participating in illegal activities, engaging in adventure sports, and deaths resulting from natural calamities are typically not covered by term insurance.
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Originally published May 19, 2023 04:06:18 AM, updated Apr 08, 2024
