Term Insurance is a matter of necessity, rather than choice

By VNeeraj Gupta, CEO, Policybazaar.ae

Most of the time, life throws up nasty surprises and things don’t go as we had planned. The last two years have shown us that being laid-back or living in denial can prove to be tragic when misfortune strikes. While Covid has changed the perception of an average person about buying term insurance, there are several who still live with the misconception that they don’t need a term plan. Some feel it as a burden on their pockets while, others feel they are young and healthy. Unforeseen events spares none, people must soon change their mindset. A Term insurance plan can shield both your future as well as your family’s well being from risks posed by your sudden death, disease, or disability.

According to research by Statista.com done in 2020, the highest insurance penetration rate among the GCC countries was in UAE at a rate of 3.2 percent. The average insurance penetration rate for the region in the same year was 1.9 percent. The life insurance penetration in UAE currently stands at a mere 0.5 percent which indicates a clear need for better awareness among customers regarding their health and financial risks.

People of all age groups across the GCC must consider Term life insurance as a must-have financial instrument. They need to realize that it is necessary to purchase Term insurance as it acts as a protection shield in any unforeseen event, provides financial security for your family’s future, and helps in achieving the collective financial goals of the family.

Avoid any future financial crisis by choosing a term plan: In case you are the only earning member in your family, term insurance is a must for you! Just for once, think about what would be the situation of your parents, spouse, or kids in your absence. How difficult would it be for them to manage everything? Would there be enough resources available for them to pay for ongoing daily expenses and impending future costs?

Ensure extra protection with riders: Uncertainties like critical illness or accidental disability can prove to be emotionally and financially stressful. By paying a little extra premium one can extend the safety net of a term plan with riders or add-ons like accidental disability rider, critical illness rider, etc. They prove to be extremely helpful for the policyholders during times of distress.

Term Life Cover has an affordable premium: Buying term insurance early (ideally before crossing 30) would mean paying a low premium for a longer term. Thus, while continuing to pay the same rate of premium (regardless of the rate of inflation), you can financially secure your family’s future against all eventualities.

Don’t Delay, Get Term Insurance NOW!

You must see term cover as protection and not just as any other financial expense. Spare a moment and think thoroughly about buying term insurance for your family’s well being and to protect their future.