A risk transfer mechanism to protect the biggest and most important asset - Your income-earning ability.
"There are two basic motivating forces: fear and love. When we are afraid, we pull back from life. When we are in love, we open to all that life has to offer with passion, excitement, and acceptance" - John Lennon
John Lennon may not be referring to life insurance through this quote, but sure we can find a strong connection.
Life insurance is one of the important things you will buy, driven by both fear and love.
Fear that you may not be around and the love for your family.
It is a simple answer to one of life's most difficult questions. How will my family manage financially when I die?
While it is almost impossible to replace what you are to your family, you can certainly make provisions to replace your income via adequate life insurance.
If you have people who are dependent on your income, then you need life insurance.
Life Insurance is an efficient risk transfer mechanism. When you buy it, you transfer the risk of loss of income from your shoulders to a life insurance company for a small premium.
In the event of death during the policy term, the life insurance company will pay out the cover amount to your beneficiaries.
While your family cannot afford the loss of income, the insurance company certainly can afford to pay the claim.
Because every year thousands of policy-holders pay their premiums helping the insurance company accumulate large sums of money. They sure can pay out a few claims every year from the money collected and the balance is invested."While nothing is more uncertain than a single life, nothing is more certain than the average duration of a thousand lives." Elizur Wright - (1804 – 1885, American mathematician, “father of life insurance” for his pioneering work on actuarial tables)
You may consider buying life insurance for one or more of the following reasons;
Life Insurance can be generally classified into 3 broad categories;
There could be many sub-variants of the above categories.
The most affordable form of Insurance, with a choice of riders like Critical illness Benefits, Waiver of Premium & Disability Cover. As the name suggests it covers over a specific term, usually up to age 80.
There is no cash surrender value during or at the end of the policy.
Click here to know more about Term Insurance
Aims to provide life cover, critical illness cover, and other living benefits for the whole life. Also provides access to a wide range of Investment funds and Strategies to help you Grow Wealth and Protect against Loss of Income.
Comes with the flexibility to add or remove benefits, and also to increase or decrease the premiums and coverage amounts in the future.
Click here to know more about Whole of Life Insurance
Much like term insurance, endowment plans provide coverage up to a certain number of years. On maturity, the premium invested along with the bonus is paid back to the insured.
It is a fine blend of risk protection and savings leading to an assured wealth accumulation strategy.
Click here to know more about Endowment Plans
The thumb rule on how much life cover Expats should have is at least 10 times annual income. If you have as much, it can support your family for at least 15-20 years considering future inflation and changes in lifestyle.
If you are looking to cover your children's higher education and other key aspects, you might want to add more cover.
I have built a calculator to determine how much life insurance you need to cover the following;
Arrange a Free consultation to help you determine the right amount of cover you should have, along with suitable living benefits.
Yes, you can as long as you declare the existing insurance plans providers when you are adding one every time.
Zurich Internationa Life, MetLife & Friends Provident are the leading International Insurance providers in UAE.
They regularly publish their claim settlement statistics online.
Click the following links to know more about this
I am an Independent Financial Advisor, whose aim is to provide unbiased professional advice.
Yes, we support the management of your policy, submitting claims and renewals as well.
We can complete the whole process online and the policy will be delivered by email. Some companies even will send the nurse to your home or office for medical tests.
Whether it is Holistic Financial Planning, Life Insurance, or Investing to grow your wealth and create passive income, whatever your needs are, I will endeavor to provide the best financial advice. Arrange a Free Online Meeting to discuss your objectives and explore potential solutions.