When you take life insurance in Dubai, you safeguard the future of your family members and loved ones. Life insurance is best described as a contract between an insurer and an insurance policyholder. As per the contract terms, the insurer promises to pay the beneficiary a certain amount when the policyholder or the insured person dies.

After opting for a life insurance policy, you must pay a small sum as a premium to put together a big protective sum. When an untimely demise happens, the insurer will transfer the amount to your dependents or family members.

A life insurance policy is primarily valid for a limited period. If the policyholder’s death occurs within this timeframe, the life insurer would have to pay a death benefit. This is also referred to as the sum assured. If the policyholder survives the term, they will be liable to get a maturity benefit. When getting a life insurance policy, you need to know its key provisions.

Here are some of the most essential provisions of a life insurance policy:

  • Grace Period

This particular provision provides the policy owner with extra time to pay the premium after the due date. The grace period offered by most insurance policies is 31 days.

  • Free Look Provision

After accepting the policy and paying all premiums, the free look provision offers the policyholder some time to return the policy. Usually, 10 days is given by the insurance company.

  • Incontestable Clause

The incontestable clause provision is designed to make the policy incontestable. This is done after the policy has been effective for two years. The period could vary slightly based on the insurance provider. Since some permitted exceptions are a part of this clause, it must be read and analyzed carefully.

  • Suicide Clause

If the policyholder commits suicide two years after getting the policy, the insurance company will not cover it.

  • Reinstatement

This provision enables a policyholder to acquire coverage again within the realms of a policy that has suffered from a lapse because premiums have not been paid for it. While reacquiring coverage, the policyholder must clear all the pending premium payments and show proof of insurability.