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Recently the people of the UAE have become much more self-aware regarding their financial condition. They expect to have some return for their investment of hard-earned money in any financial instrument. These are the reasons that have led to various monetary plans and policies like mutual funds and equity. It is this fact that also led to the development of high-end life insurance plans. Thus, life insurance these days isn’t merely life coverage to protect the future of your loved ones but also an investment component to building a corpus.

The basics of life insurance

Life insurance can be defined as an agreement between the insurer and the policyholder wherein the policyholder has to pay some amount of money to the insurer in return for which they get life coverage for a fixed set of amounts. Thus, in case of an untimely death of the insured while under the policy’s tenure, their family will receive a certain sum of money that is assured in their death benefit. On top of that, it also comes with great investment plans that offer excellent returns during the policy’s tenure.

Best life insurance plans for your investment

Currently, in the UAE, there are many types of life insurance plans available. Some of them are – term life insurance, Unit-linked insurance, whole life insurance, child insurance, and many more. In individual life insurance plans like term insurance, if the policyholder outlives the policy’s tenure, neither them nor their family members will receive many benefits. This is where you can find specific life insurance plans that work perfectly, even when the policy’s tenure gets over. Some of them are:

- Endowment Plans

Endowment plans provide fixed returns on your investment along with high life coverage. In general, it’s a fixed-term insurance plan where the insured gets the benefits of both maturities and the accumulated bonus at the end of the policy term. Even if the insured’s untimely death within the tenure of this policy can provide the nominee with the assured sum; thus, it acts as a perfect fit for both insurances and investment.

- Whole Life Insurance Plans

Whole life insurance is also known as permanent life insurance. It provides coverage for an insured entire life. In return, they offer insurance premiums in time. When the insured buys the policy, they can decide the sum that they want to get assured at the end of the system while the sum gets paid to the nominee when the insured dies. The maturity age is 100 years. Therefore their death can make the nominee receive the assured sum. But in cases where the policyholder survives through the policy’s tenure, the insurer will pay the matured endowment coverage to the insured.

- Unit-Linked Insurance Plans(ULIPs)

They are commonly known as ULIPs; these life insurance plans are life cover and wealth creation, all under one plan. Here, the insurer invests a particular portion of the premium at life insurance. In contrast, the remaining is invested in equity, debt, or a mixture of equity/debt of their choice.  There’s also a death benefit that offers a certain sum of money, which is paid to the policyholder during their death within the policy’s tenure. While if they survive the term, they get benefited with the maturity amount. Whether it’s children’s education or wedding planning, this insurance plan is the perfect match to attain long-term financial goals.

Conclusion

The life insurance plan is related to investment plans in Dubai and other parts of Emirates. Although one can find considerable returns regarding life insurance policies regarding life cover due to the various life insurance policies available. Therefore, choose the life insurance plan that suits your insurance and monetary needs.