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After the global pandemic hit the entire world, the need for life insurance among the UAE people has increased drastically. People have finally begun to understand the real need and value of life insurance policy in their life. However, it is essential to remember that purchasing life insurance isn’t always easy. It requires buying a policy that not only fulfills one’s specific insurance needs but also covers the premium, tenure, and coverage within the purview of one’s finances. Therefore, if you are planning on buying the best life insurance policy, here are the top 5 mistakes you need to avoid –

1. Do not avoid reading the entire terms and conditions

When you opt to purchase a life insurance policy, it is crucial to undergo their terms and conditions in detail. The T&C section holds all the necessary information about the entire scope and limitations of the policy you are applying for. These are the points you should require specifically when going through the T&C part:

- Exclusion clauses

- The entire cost and expenditure of the policy

- Rights and responsibility of the policyholder

- The claim process

- Conditions that can deny you a claim

- Implications in case of death/disability

2. Misrepresentation of facts

When you fill out the insurance form, make sure that there are no hidden or distorted facts. In the UAE, such type of misrepresented information is taken seriously and can immediately lead to a case of “fraud.” Moreover, certain circumstances might further deny you from any claims. Following are the crucial facts that you should disclose: Current health condition Medical history Family health status Present lifestyle Presence of smoking habits

3. Incurring excessive expenditure

Generally, a life insurance policy incorporates a small but crucial portion regarding your financial portfolio. It should be noted that a life insurance policy incurs an expenditure that is more than 5% of total disposable income. Spending more than this amount might end up leaving you with a lesser amount to invest or save.

4. If the coverage is not focused

Perhaps one of the most crucial aspects of a life insurance policy lies in the amount of coverage it provides. If you have a proper understanding of the policy’s coverage, it can help you determine the right type of plan that suits your needs. This can help you to meet your crucial financial goals more efficiently. Therefore in case of an under-insured or over-insured policy, focus on the following

- Age

- Income

- Net-worth

- Future inflation

- Number of dependents

- Short or long-term goals

5. If the illness cover isn’t purchased

A life insurance policy isn’t just about purchasing financial aid at the time of death. Instead, it should also be purchased in case of a significant illness that might threaten the policyholder’s life. These include life-threatening diseases such as cancer, diabetes, paralysis, and so on. This can help you make massive financial relief when a family member might get diagnosed with an acute disease.

If you are careful enough to purchase the life insurance policy, it can help you buy the right life insurance policy that suits all your needs efficiently in the UAE. Insurance isn’t just a means to protect your life but also a way to safeguard the future of your loved ones. Purchase the best life insurance from policyhouse.com to get yourself a coverage of AED 1 million.