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Advantages of investing in owning a life insurance policy

    Shiimaa Mohamed
    By Shiimaa Mohamed

    Categories: Insurance


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    Advantages of investing in owning a life insurance policy

    The life insurance policy can be used for future use. In case of sudden death, the life insurance policy can provide protection for the family and protect it against financial problems. The real benefit comes when you feel that you have taken steps to protect your family.

    In life insurance, it is necessary to choose the appropriate company and the appropriate document. It is important that the client talks to the representatives of the licensed companies in order to obtain the desired benefit.

    One of the most important benefits of a life insurance policy is to realize the benefits of investing in life. Many do not know that they can get loans on their documents, enabling them to meet their interest-free needs on the one hand while continuing to cover the document as well.

    There are so-called life-insurance companies that can only give their client the insurance or investment insurance policy without any interest after the second year of the contract with the company, which is not less than 10 or 15 years.

    It is not advisable for the client to obtain a loan from his document before reaching the point of convergence or balance between the profitability of the document and its cost, which is often after the sixth and seventh year for the life insurance policy of the client.

    The Agent is entitled to submit a partial refund request for his document from its insurance company, which is estimated at 75% of the amount in the customer's investment account. The Company's response to the approval of the loan will be within 5 business days only, Request redemption.

    The customer can repay the loan again or refund part of it or put a larger amount than borrowed and is free to do so.

    In addition, a client can have an investment account of LE 10,000 and request a good loan on his document to get 75% of them, up to LE 7,500. The remaining 2500 LE will be invested by the insurance company for the benefit of the client. The insurance company invests on the basis of the total amount - the old plus the loan paid by the customer - through the interest account thereon.

    The customer receives a check for the loan amount, and may be non-repayable as a right for the customer to take part of his money if he wishes or need it. He pointed out that the Takaful customer is entitled to a good loan 4 times during the first 10 years, Of the age of his document and then it becomes a legitimate right annually after this period.

    Advantages of participating in securing protection and saving

    Planning for the future has become a vital necessity, in order to provide financial stability for you and your family, whatever the circumstances. Here comes the protection and savings programs that help you achieve future financial preparedness to meet your financial goals while providing financial protection to your family in the unlikely event of unexpected risks, allowing you and your family to live in a life of less financial stress. Insurance can also help you increase your savings by participating in a protection and savings program for a certain period of time. You can also increase the savings you have made by taking advantage of savings and savings programs that provide investment options for your savings managed by the insured.

    According to the Saudi Insurance Market Report of 2016 issued by the Saudi Arabian Monetary Agency (SAMA), the total insurance and savings premiums subscribed rose slightly, representing 3% of the insurance market by 1.5% to reach SR 1.05 billion in 2016.

    What are the insurance and savings programs?

    Is an insurance contract whereby the insurance company pays a certain amount if the insured is harmed or at the end of the agreed period according to the insurance contract, in return the insured pays the value of participation in this type of programs.

    Types of insurance and savings

    Insurance companies in Saudi Arabia offer two types of protection and savings insurance:

    1- Insurance: The insurance company pays a certain amount of money to the beneficiaries registered in the insurance contract in the event of the death of the insured or a total or temporary disability of the individual and groups for the payment of the monthly contributions agreed upon in the contract until the end of the contract period.

    2- Insurance and Savings: Here the insurance companies pay an amount or amounts, including the proceeds of savings at a future date against the payment of monthly contributions agreed upon in the contract.

    Advantages of securing protection and saving

    Insurance and savings insurance contracts vary among insurance companies in terms of insurance coverage and the value of monthly contributions. Therefore, we have listed the main benefits (insurance coverage) that can be used for this insurance.

    • Coverage in case of natural death or as a result of accident God forbid
    • Coverage in case of total disability or incurable diseases, God forbid
    • A financial plan that offers you a variety of savings, protection and investment packages
    • Repayment of loan installments payable by the Insured in case of death or total or partial disability
    • Subscription payment options
    • Under the insurance policy, the joint person shall pay the agreed installments during the period specified in the contract. Payment options vary depending on what is agreed upon. Payments may be made on an annual, bi-annual, quarterly or monthly basis.

    6 reasons will change your outlook for insurance

    Insurance helps us to cope with the risks we may face and contributes to mitigating their negative effects, as the insurance company assumes the financial burden of these risks in return for certain premiums. Insurance products have evolved into several areas, enabling individuals to insure their health, vehicles and other property against many of the risks they may face such as traffic accidents, illness, theft or otherwise.

    What is the importance of insurance?

    Protect your financial future

    Insurance is a successful way to help you protect your financial future if you are exposed to any accident or illness that hinders you from working and earning money. There are insurance programs that protect you and cover the risks you may suffer as a result of disability or incurable diseases such as personal accident insurance .

    Effective risk management

    The life of any person is not free from exposure to crises and accidents, so it is prudent to hedge against this by taking the necessary measures. One of the best ways to prepare for these risks is to participate in insurance programs that suit your needs and your potential. 

    Protect your family financially

    Insurance plays a key role in relieving the financial pressures your family may suffer in the event of an emergency - God forbid. There is a type of insurance product called the insurance and savings insurance, which provides financial protection for your family by providing a specific income according to the insurance policy helps you and your family to pay the emergency financial expenses arising from the occurrence of any abomination to you such as death or total disability or any other risks covered in Insurance document.

    Insurance means investment

    Insurance coverage is in itself a type of future investment. Many types of property insurance offer coverage against damage, damage or theft. The insurance company compensates you or replaces your property with a new one or provides maintenance service in case of any of the risks covered by Of the insurance policy, which saves the value of your property.

    Keep your savings

    Do not look at insurance premiums as unnecessary monthly expenses that increase your financial burden, because choosing the right insurance for your future needs helps you avoid taking emergency expenses that were not taken into account without compromising your savings.

    Ensure the stability of your business

    Insurance may be the safety collar if your project is at risk. There are many insurance programs designed to suit the needs of businesses, providing insurance coverage to withstand the risks of business interruption or protection of the company's property such as the contents of the stores, commercial property or vehicle fleet of the company against damage, theft or other.