Need life insurance for you and your partner? Here's everything you need to know
6 February 2020| Last updated on 9 February 2020
We take a look at what joint life insurance is, and when you should go for it...
Traditionally, life insurance has been designed to cover the life of the primary breadwinner of a family. However, this has evolved over times and these days, couples are seeking joint life insurance opportunities to ensure both spouses are covered.
As the name suggests, joint life insurance offers the chance to cover oneself along with a spouse under one contract. Having one allows comprehensive protection with multiple benefits, and helps to ensure the future of your family is secured if either of you is no longer there.
We take a look at the benefits of having joint insurance in the UAE...
Why take out joint life insurance?
It if takes two incomes to pay your bills, you should insure both of you. Most joint life policies will give payment on if the death of either of the two insured occurs.
Other benefits also include a regular income to the surviving spouse for a fixed period, in addition to the death benefit paid. What's more, some policies provide an extra amount paid along with the death benefit if the death is due to an accident. On another note, younger couples wishing to save money on premiums should also opt for joint insurance.
Some insurers will also offer free critical illness cover for children. Critical illness insurance provides additional coverage for medical emergencies, like a heart attack, stroke, or cancer. Because these emergencies or illnesses often incur greater than average medical costs, these policies pay out cash to help cover those overruns where traditional health insurance may fall short.
Disability insurance provides a source of income to people who are unable to work due to an accident or illness. Without disability insurance protection, workers and their dependents are “living on the edge,” at risk of losing their homes, savings, and investments.
There are several reasons as to why you should consider taking out joint life insurance, and these should be discussed in-depth with your partner and chosen financial advisor.
Make sure you're getting adequate cover
The main reason to get life insurance is to secure a lifestyle or wealth for your family - or chosen beneficiary - after you pass. Consider facts like how much income your family would need per year to replace your lost income, and if you have a spouse, would they work after your death? How much income do they make to contribute towards family expenses? Lastly - how long will they work?
Other things to take into consideration include whether your policy will need to provide funds to be used for education, such as college or university for your children. Consider how much existing debt your family (or you) already have, and what investments or savings do you have?
The answer to income replacement is not always straightforward, so this must be considered carefully.
How to choose the right financial advisor
In order to find the best policy for you both, finding a good financial advisor who understands your financial goals is imperative. They can help you to make an informed decision since they will identify the best plans for your needs and help you to grow your money. The right financial advisor will manage your portfolio over the long term.
When selecting a financial advisor, consider factors such as how long has the insurer has been in the region? Do the insurance proceeds get paid based on the law of the land or beneficiary nomination? What are their claim payout ratios? Is the policy globally portable or is there restrictions?
These are all questions that will help you choose the right insurer for you.