steps and features of wife insurance Blog Image

steps and features of wife insurance

30 June 2024

There are various types of insurance and coverage, each with its purpose and goal. Marketing terms are diverse and different, aimed at attracting new clients, such as insurance for the spouse or family, education policies, marriage policies, loan insurance, or pension insurance. However, when you delve into the core of the coverage, you will find that it is essentially a life insurance policy. For example, a client may request the issuance of a life insurance policy, either temporary, investment-based, or both, to provide financial protection for his family in case he is exposed to any of the risks covered by the insurance policy.

For instance, in the event of the insured's death, the insurance company pays the compensation amount to the beneficiary specified by the insured in the insurance application at the time of issuing the policy. Let’s say the wife is the beneficiary; the compensation amount will benefit her and help cover living expenses, complete her children's education, and meet financial obligations.

Life insurance policies for the spouse vary in terms and amounts based on the individual's choice of benefits that the beneficiaries will receive later.

What is Insurance?

Insurance is one of the financial systems aimed at reducing individuals' exposure to financial risks that generally affect people's lives. Insurance companies offer various programs that you can choose from, whereby the insurance company pays the amount stated in the insurance policy in the event of a covered risk, such as the insured's death or incapacitation due to an accident that prevents them from working.

Importance of Personal Insurance

Personal insurance generally provides financial protection for the insured's family upon his death by providing them with a sum of money according to the policy terms to help them pay debts and continue life after the loss of the family breadwinner, who provides the income source that helps them live.

Why Do Insurance Companies Require Beneficiaries to Be Mentioned in the Insurance Application?

Some individuals issue an insurance policy in favor of a specific bank or one of the financing companies as a guarantee for obtaining a loan or facilitating credit.

Others issue an insurance policy stating that the beneficiaries upon death are the legal heirs, and the compensation amount is distributed to the deceased's family and relatives according to Islamic law.

Others issue an insurance policy to protect their wife and family by stating that the beneficiary is only the wife. The husband ensures the wife provides funds to cover daily living expenses, children's education, and savings in case of the husband's death or incapacitation, ensuring continued income in the event of the family's income interruption. The terms and features of the insurance policy vary based on the husband's choice from the offers presented by insurance companies. Thus, the primary goal in this case is the financial protection of the wife and children from financial distress if the husband dies or becomes unable to work.

Types of Insurance Policies a Husband Can Obtain to Cover His Wife and Family

Temporary Life Insurance

This insurance provides the husband's heirs with money in the event of his death. The husband purchases an insurance policy so that the wife and young children benefit in case of his death. This serves as financial support to cover funeral costs, pay off debts, and compensate for the husband's income.

Additionally, the husband can issue an insurance policy in his name and another in the wife's name, specifying the beneficiaries in each policy.

Investment Insurance

This type of insurance is called long-term insurance, lasting for 10, 20, or 30 years until retirement age. There are insurance policies that remain valid until the insured reaches 75 years old. Upon the policy’s expiration, the insured receives the amounts paid throughout the insurance period along with investment returns. In the event of the insured's death during the coverage period, the legal heirs and/or beneficiaries receive the death insurance amount along with the amounts the insured paid during his lifetime, plus the investment returns.

Medical Insurance

A husband can issue an insurance policy for himself, his wife, and children. He can also issue a policy only for the wife or only for the children, depending on the subscriber's budget and his medical insurance status at work.

Health insurance covers inpatient treatment costs in hospitals, and surgical operations, as well as outpatient treatments such as doctor visits, medical tests including analyses and X-rays, physical therapy costs, and medication expenses. The policy can also extend to cover additional benefits like dental treatment, optical care, and maternity and childbirth follow-ups, according to each insurance company's terms and policies.

Critical Illness Insurance

The purpose of critical illness insurance is to reduce the financial burden on those with serious illnesses, in addition to completing the medical coverage benefits provided by general health insurance.

Doctors may differ in describing patients as having incurable diseases, but within this variation, all the following diseases can be classified as critical conditions, including:

  • Cancers, including certain types of cancer

  • Strokes

  • Heart attacks

  • Paralysis

  • Kidney failure

  • Coronary artery bypass surgeries or vascular grafts

  • Transplantation and transfer of various body organs

  • Alzheimer’s disease

Cancer Treatment Insurance

The purpose of cancer insurance is to reduce the financial burdens borne by cancer patients and provide financial support to policyholders. However, the policy is not issued to the insured who is already diagnosed with cancer, as the purpose of this policy is to cover treatment costs if the disease occurs after the contract.

Personal Accident and Injury Insurance

Accident insurance provides financial protection for the husband or wife in the event of an unexpected accident leading to death or bodily injury resulting in disability.

Exclusions in the Insurance Policy

The insurance policy does not cover cases of death or disability arising directly or indirectly from any of the following:

  • Loss of consciousness due to insanity or being under the influence of drugs or alcohol

  • The insured intentionally injures himself or herself or exposes themselves to danger by committing or attempting a crime

  • Participation in hazardous sports

  • Wars, atomic dangers, nuclear reactions, and the use of chemical and biological weapons

  • Suicide or attempted suicide

  • The insured's participation in sabotage and terrorism

  • Due to performing military service in peace or war, or during mutiny or revolution

  • If the accident is intentional, insurance does not cover it

Procedures for Obtaining Spouse Insurance

Basic Requirements

Initially, you need to understand the purpose of the insurance policy, its terms and coverage, and the exclusions. Additionally, you should identify insurance companies that offer these benefits and choose a policy that suits your needs. A brokerage company provides many options that meet all needs in cooperation with major insurance companies, as it is a trusted company in the insurance field.

Required Documents

Each company has its own requirements for providing price quotes, the most important of which include:

  • A copy of the national ID card (personal identification card)

  • Marriage certificate

  • Medical history, if any

  • Insurance application form

  • Height and weight measurements

Health and Age Conditions

Conditions may vary from one company to another and from one insurance policy to another, but there is some basic information you need to know to choose the appropriate insurance program for you, such as:

  • Age: As age increases, the likelihood of experiencing health problems rises. Choosing the right time and obtaining insurance early can save you potential future expenses, such as care and treatment costs.

  • Health Status: Provide the insurance company with accurate information about your health status and medical history, if any. The insurance company will review the health condition, and there is a possibility of covering some chronic diseases with a specified amount, or the insurance company will inform you about what is covered and what is excluded.

What Are the First Steps to Obtain Spouse Insurance?

Initially, you need to determine the amount you can pay monthly or annually based on your choice of insurance policy. You should discuss the wife’s needs and her health condition to choose the appropriate policy for her, whether it is for life insurance or health insurance.

Can You Change Insurance Companies After Starting the Contract?

Yes, you can, but you must understand the insurance company's policy regarding your request to cancel the policy, as some insurance companies do not refund the policy value after the contract. You can also change the insurance company after the policy expires and before renewing it for another year, but you also need to be aware of the advantages and disadvantages of doing so.

What Is the Validity Period of a Spouse’s Insurance Policy?

In most insurance policies, the policy term is annual and renewable. However, there are some types, such as investment life insurance policies, which remain valid until the insured reaches 75 or 80 years old in some companies. The policy ends either upon the expiration of the policy term, the death of the insured, or the liquidation of the policy at the client's request after 10 or 20 years.