Critical Illness Insurance is a living benefit that helps you protect against loss of income on the...
What is Critical Illness Insurance and why you need it?
Major Ailments like Cancer, Stroke or organ failure can keep a person away from work for months or even years resulting in temporary or permanent loss of income!
Have you ever imagined how your life would change if you were diagnosed with such an ailment?
"Employees are entitled to sick leave of not more than 90 days per year subject to conditions stipulated in the law. They will receive full pay for the first 15 days, half pay for the next 30 days and no pay for the rest 45 days." - https://www.khaleejtimes.com
Risk of Losing of Income and more...
In the event of diagnosis, treatment and recuperation of an ailment extending beyond 45 days, employees are not eligible to receive salaries while absent from work.
Sick leave extending beyond 90 days may also lead to the loss of employment and associated benefits like residency visa, employer-provided medical and life insurance.
Self Employed professionals who offer personalised services like Doctors, Lawyers, Architects & Chartered Accountants are also at risk of losing income and clients in the event of diagnosis of a serious illness.
Business Owners and Partners have much more than income at stake. Their business performance may slack or stall due to their absence and lack of management efficacy resulting in loss of revenue, profits, capital and goodwill.
Whether you are a business owner, a professional or a Salaried individual, it can be difficult or almost impossible to sustain in UAE without a regular income.
Having adequate critical illness coverage can be very useful in such situations.
What is Critical Illness Insurance?
Critical Illness Insurance is a Living Benefit. It is designed to mitigate the loss of income, by paying the insured an agreed cash lump-sum on the diagnosis of a major illness covered by the policy.
It helps the insured focus on recuperation instead of worrying about;
- Living Expenses
- Rent / Mortgage
- Children's school /University Fees
- Loan Repayments, etc.,
- Loss of Business Revenue, Profitability and Capital
Typically expats choose to move back to their home country in the event of diagnosis of a major ailment, forcing them to rely on their savings or assets for supporting their medical and living expenses.
Given the rapid technological disruption, slow economic conditions and extreme competition, it could be difficult to get back into employment/profession or restart a business after a long break.
Critical Illness Insurance can be very useful in such situations to realign one's finances by helping the insured
To pay off large debts like a mortgage
To keep aside money for children's higher education/Marriage
To support an early retirement
Or to create a passive income source while managing to live on a lower than before income
In UAE Critical Illness Insurance is offered by major international Insurance companies like;
- Zurich International Life
- Friends Provident International
- LIC International
- Salama - Islamic Arab Insurance Company
Expert and Unbiased Advice
To know more about Life and Critical Illness Insurance, schedule a 15 minutes Free Discovery Call with me, or read the following articles;
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...