Investments, Education Savings
7 easy steps to invest in the best child education savings plan in UAE
Investing in your child’s education is more than a financial goal; it’s a lifelong gift that...
Life insurance is perhaps the only product you will buy, hoping you don't have to use it anytime soon.
Hence, it makes perfect sense to spend as little money as possible on it.
However, having the wrong type or inadequate life insurance can put your family's financial future and your hard-earned wealth at risk.
It is crucial to buy adequate coverage and the best plan that fits your protection needs and budget from a reputable insurance company.
Determining how much life insurance you need can be a complex process involving multiple steps. It would help to seek professional guidance from a financial advisor.
As an expat and a breadwinner, it is essential to determine the following;
You can calculate how much money your family needs to sustain a living based on the above factors.
You might also consider that they may not be able to leave the UAE immediately due to several factors like;
In this situation, you may want to ensure that your life insurance is adequate to cover their living expenses in the UAE for 3 - 5 years.
Schooling is a basic need that has to be taken care of. How much coverage you need for schooling depends on the following;
As an Expat parent, you may aspire to provide your children with the best education platform to help them launch their future. Having adequate life insurance can make this happen even when you are not around. You can determine how much you need for higher education for your children with the following.
Evaluate any outstanding debts and liabilities, such as a mortgage, personal loans, or other obligations. Ensure your life insurance coverage is sufficient to pay off these debts.
Life insurance is the most affordable and quickest medium to create a legacy for your loved ones. For EG: If you are a 40-year-old Indian and non-smoker, you can buy a term life insurance to create a million Dollar legacy at a mere $135.30 per month( 0.162% PA).
Over 20 years, you would have only paid $32,472 as a premium, but you could leave a million-dollar legacy.
If you own assets in a country with inheritance and or estate taxes, your life insurance should also cover the extent of the tax liabilities. Typically people buy a Whole Life policy to fund Estate / Inheritance Tax liabilities.
Additionally, there may be many other reasons why your family may need further sums of money for one or more of the following;
Your life insurance needs will depend on your circumstances, such as age, marital status, number of dependents, desired lifestyle, financial goals, etc...
As a Financial Advisor I have more than 11 years experience in helping people buy the best life insurance in the UAE. I can help you determine the required coverage and buy the best life insurance that provides you the peace of mind that your loved ones will be financially independent in the event of your untimely death.
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...
Investing in your child’s education is more than a financial goal; it’s a lifelong gift that...
Understanding Life Insurance