Pure Term Insurance Vs Whole of Life Insurance In UAE

To secure yourself and your dependent family, insurance policy is a necessity. An insurance cover provides a financial cushion to your loved ones by offering the beneficiary sum assured in case of your absence and other benefits. The policy keeps your family safe from any financial trouble and helps to maintain the same lifestyle.

When it comes to choosing one amongst the policies, you will need to compare Term Insurance Vs Whole of Life Insurance plans. If you're contemplating between the insurance plans, you need to assess the policies on various parameters.

• Pure Term Insurance offers compensation to the beneficiary of the deceased policyholder, and there is no benefit if the insured person survives through the term. WOL option offers survival benefit if the policyholder survives until the policy maturity. Along with this, it also considers death benefit, a major trait of a Pure Term Insurance policy. On the other hand, WOL provides lifetime coverage to the policyholder with death benefit and a savings component.
• In terms of premium cost, the Pure Term Insurance plan is cost-effective. A Return of Premium plan has a high premium rate. A WOL Insurance policy has a fixed rate of premiums, a policyholder needs to pay throughout his/her life. The premium of whole of Life Insurance is more costly as compared to the Pure Term Insurance policy.
• Whole of Life Insurance protects the insured person until death. In the case of Pure Term Insurance, it would operate for a specific term period, which could range for a period of 10, 15, 20, or 30 years.
• Pure Term Insurance is best suitable for individuals who want to protect their families financially. The Return of Premium policy or whole of life is ideal for individuals who seek returns along with the coverage. Permanent Life Insurance is suitable for all individuals – single married or married and have kids.

Whether you choose Pure Term Insurance or whole of life insurance, all policies have their benefits. It is always necessary that you assess your coverage needs and select a plan that suits your budget.

Do not hesitate to ask your questions in the comments in case you require further clarifications.