5 Key Benefits of Having a Life Insurance Policy in UAE as an Expat
There are many expats who live, study, and work in the UAE for the long-term. As they grow older, they might get married, start families, run a business, etc. Now at this point of time, there are many important things to think about since the responsibility of an individual also increases towards his/her family. Among all, one of the most significant things that should be addressed as soon as it is possible- Have you opted for life insurance in UAE?
It is a very important question specifically when living in an outside home country. As an expat in the United Arab Emirates, you live miles away from your native country, being the sole bread earner of the family, it is your responsibility to protect your family members such as your wife, parents, and children financially even in your absence. And that financial protection can be offered to your loved ones by opting for life insurance in UAE.
Even, if you are living in the UAE for a short-term, say a few years as you work towards your goals, there are some major benefits of having life insurance in place- many of you have opted for a loan, planning to get married, have a plan to start a family, or if you run your own business in the emirates.
But the recent study revealed that nearly 50% of the expats in the UAE do not have enough insurance coverage. Many of them either believe that the insurance premiums are quite high or some people are not familiar with this concept and the benefits associated with life insurance.
Here in this article, we will first understand what life insurance is all about and what are the benefits of having life insurance in UAE as an expat?
What is Life Insurance?
Life insurance is an agreement between the insurance company and the policyholder wherein the insurance company guarantees a pay out in terms of the death benefit to the beneficiary stated in the policy contract upon the sudden demise of the policyholder during the policy tenure. Well, the death benefit offered by the insurer is in return for the premium payments made by the policyholder.
The sole aim of life insurance is to offer financial protection to your family members when you’re not around so that they can meet all of their financial needs without any hassle. Additionally, there are some life insurance polices offered in the UAE that also offer investment benefits upon the maturity of a life insurance policy.
Key Benefits of Having Life Insurance in UAE as an Expats:
Though there are plenty of benefits of having life insurance as an expat, some of the serious benefits are as follows:
1. Protects You & Your Loved Ones Financially
In an event of your untimely demise, your business, property, and all other personal and financial liabilities automatically become the responsibility of the next person in your family that could be your spouse, parents, and siblings. In such a case, your loved ones may end up being the ones who have to pay off your car loans, mortgage, credit card bills, debts, and other outstanding payments. If you have opted for life insurance in UAE, your family members will be able to pay off all these debts without any financial burden since the insurance company provides the sum assured to the nominees so that your loved ones will not be left with any financial burdens.
In addition to this, if your family members depend on you financially for their livelihood, an apt life insurance policy enables your spouse, parents, and children, to sustain their living standard even in your absence.
Besides offering protection against death, many life insurance plans offer the benefit of monthly income which is a great boon especially for old-aged people who are going to hit the retirement age and have diminishing income.
2. High Returns on Your Investment
Many financial experts in the UAE suggest that everyone must buy a life insurance policy to not only protect your family members financially in your absence but also from the perspective of gaining high returns from the investment. There are many life insurance plans in the UAE that offer valuable returns in the form of bonus that no other investment tool provide.
Also, life insurance in UAE is one of the safest investment tools when compared to other investment options available in the market. The money you invest in your life insurance policy is returned to you in full as the sum assured at the end of the policy tenure or after the death of the policyholder.
3. Helps You Achieve Your Long-Term Goals
Planning your finances in the right manner through different stages of life is paramount. This is where life insurance comes into the picture.
You can opt for a term life insurance and provide financial support to your loved ones in an event of your premature death. This will not only help your family members to cope up with the financial obligations but also help them to live a financially independent life without having to compromise on their lifestyle. In addition to this, by investing in the right life insurance policy, you can achieve your various long-term goals such as paying your child’s education, child marriage, buying a dream home, or creating a corpus for the post-retirement life. Be sure that you opt for the right life insurance in UAE that perfectly suits your insurance needs.
4. Ensures Peace of Mind
We can never predict that when we will die but yes, we do know that we all will die one day. Opting for life insurance in UAE ensures complete peace of mind as it offers financial protection to you and your loved ones. You won’t have to worry whether your family members financial needs will be taken care of in your absence as life insurance provides compensation in the form of the death benefit. The appointed beneficiary receives the full sum assured to meet their all financial requirements.
You can also buy riders by paying an extra premium in order to enhance your life insurance coverage. There are several riders come with life insurance plans such as critical illness insurance, accidental total permanent disability, waiver of premium, etc. All of these riders basically safeguard you and your loved ones against several instances wherein your life insurance policy may not come into play. In short, you can get comprehensive coverage by opting for the rider as per your insurance needs.
Among several things that we may know and learn throughout life, death is a bitter reality that is unpredictable. Though it may feel quite depressing to consider, it is important to consider what will happen when you are no longer in the world? What will happen to your loved ones especially those who are financially dependent on you? Who will support them financially? Who will pay your outstanding debts in your absence? What happens to your business?
There is one monetary solution for all these problems and that is none other than life insurance in UAE. It is a risk minimization and safeguard tool that helps the policyholder and his/her dependents in different ways while dealing with an array of life events.