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Life Insurance in UAE - Financial Planning in Dubai
Have you ever thought about how your family would manage their finances if you did not wake up tomorrow?
It is a difficult question, thankfully, the answer is not so complicated!
Life Insurance is a simple answer to this dreadful question.
Life Insurance in UAE
The following are the three major types of life insurance in the UAE
The primary purpose of all kinds of plans is to provide lump-sum cash to your family, helping you secure their future in the unfortunate event of your death.
A life insurance policy can be useful to you in the following ways;
To replace your regular income for the daily living expenses of your family
For clearing your outstanding loans like mortgage, credit card, personal loan, car loan, etc.
To fund your children's education, marriage, dreams, and ambitions
To ensure the peaceful retirement of your spouse
For leaving a long-lasting legacy for your loved ones
If you are a business owner, it will provide your business with the necessary cash flow to survive the severe phase
To pay for the repatriation expenses of your family
If you are from a country that levies an estate tax, Life insurance can help you save your estate
To establish a corpus for a charity if you support a charitable cause.
And much more…
Also read: Top 5 Term Insurance Plans in UAE
A Solid Base
Your life insurance can provide a solid base for your financial pyramid. You can build your dreams and goals and rest your assets and liabilities.
It supports your efforts in creating a strong financial foundation for your family.
You should consider buying Life Insurance in UAE if;
You are Single
While you are single, you may not have dependents on your income; but your life insurance premiums are very low when you are young.
As you grow older, your premiums will increase substantially. So buying life insurance when you are young is a good idea.
Most life insurance companies provide critical illness cover as a rider along with life insurance. Availing of critical illness coverage will help you remain financially independent even when diagnosed with a severe illness.
Marriage brings together two individuals who agree to share their happiness and sorrows along with the family's financial obligations.
If you and your partner are working, you are most likely to plan your future based on joint incomes.
You may borrow to buy a cozy apartment, a bigger car, or a luxury holiday. God forbid if one of you dies, the surviving spouse's life is devastated, filled with grief and the enormous pressure of having to clear the debts on his / her own.
Married with Young Kids
Like many families in UAE, if both of you are earning, both of you should buy life insurance at the earliest.
If one of you were to die, then the surviving spouse would be left with young children, half or less income to pay the bills, fund education, and clear the debts, along with additional expenses of babysitting and probably repatriation to the home country.
Even if you are the sole breadwinner of your family, you must
Your spouse makes vital contributions to child care, cooking for the family, managing your house, and other necessary chores. In the event of his / her death, you will have young kids to raise and less time to maintain your home while trying to earn a living.
In the event of a Critical illness to your spouse, you can help your partner recover and take care of kids without worrying about your job or bills, thanks to your life insurance with critical illness benefit.
Proceeds from life insurance can help you afford a full-time nanny /cook /maid and enable you to settle in a position that allows devoting more time to kids and family.
As a single parent, you play the roles of a breadwinner, father, mother, cook, friend, driver, and much more.
While losing the only parent would be a tragedy for your child, having no money to pay for bills and education can be further devastating.
You would be surprised to know that many single parents do not have life insurance. Even if they have, they do not have adequate life insurance to address the financial needs of their children.
Be practical and set up life and critical illness insurance today to protect your child's future.
Married with Older Children
Your kids may have finished college, and your commitments like mortgage might be paid up.
You still need life insurance to provide for your spouse, who may outlive you by 20- 30 years.
Thanks to medical advancements, life expectancy
Your spouse may have a difficult time maintaining the current lifestyle or may have to depend on your children, who are about to start their family.
You are retired
Many countries levy up to 40 % as estate taxes. A life insurance plan can enable your heirs to claim their inheritance without having to sell the whole or part of your property.
In case you have not saved enough to leave a legacy, a life insurance plan is a viable option to create a legacy for your children and provide for your spouse.
If you are a Business Owner or Partner
As a business owner or partner, you are responsible for providing for your family and the continuity of your business.
In the event of your death, many employees, co-owners, and their families will also get affected financially. Your death may also lead to the closure of your business.
Key Man / Partners Insurance is a life insurance policy taken on the lives of key people in the business whose death can significantly impact the profitability and continuity of the firm.
Life Insurance in UAE - Start Here Now
Arrange a free initial consultation to understand how to protect your family/business.
Author, Blogger & Independent Financial Advisor. My goal is to give you actionable tools for creating passive income and building wealth. More than 10,000 expats have already used my ideas to jumpstart their journey towards financial independence. Connect with me to start yours...