Medical insurance is mandatory in the UAE. While, on the surface, this can seem like a positive, what it also does is leave many complacent about getting critical illness cover.
Life Insurance, Critical Illness and Medical Insurance: The Differences.
It can be hard to decipher the differences and benefits of different types of insurance, and why you should have all three. While there are innumerable different products and takes on these types of insurance, the basics are as follows:
Life Insurance – Life insurance pays a lump sum to your financial dependents in the event of your death.
Critical Illness – Critical Illness cover provides a lump sum to your financial dependents in the event that you are afflicted with a long-term illness or medical condition.
Medical Insurance – Covers the cost of medical treatment in the event that you are ill or injured.
Critical Illness and Medical Insurance.
For those living in the UAE who are already paying for medical insurance, it’s difficult to see how having critical illness cover can benefit you. Many then view it as an unnecessary expense. But this is far from the case. While, superficially, they might look like they perform the same function, they actually function quite differently.
If you are afflicted with a debilitating illness, the financial consequences can start to snowball. The first and most obvious of these is the loss of income. Depending on the nature of your illness, this can be a long time that your family has to cope without a source of income. And, of course this is not covered by your medical insurance.
Further, medical costs in the UAE can often far exceed the value of your medical insurance. For example, according to the Rahma Cancer Patient Care Society, the average monthly cost of chemotherapy in the UAE is around Dh32,000. These costs can quickly reach far beyond the limits of your coverage. Other treatments can also be costly, with the cost of an open-heart surgery in the UAE exceeding Dh150,000.
Different Methods, Same Ends.
While all of these types of insurance are designed to serve the same end – affording your financial dependents a continuity of lifestyle and financial stability – they all do so by different methods. And all are equally important. Medical insurance will help to pay for the often-expensive cost of medical care. Critical illness cover can also help to pay for potential medical costs. But, as well as this, it supplements your loss of income to ensure that your family can continue their lifestyle as best as possible. And life insurance helps to supplement for the absence of income in the event of your death, as well as helping to pay for death-associated costs like funerals and legal work.
If you’re concerned about whether you have enough cover or want to discuss what policy is right for you, contact IAE Insure today at firstname.lastname@example.org or call +971 4 396 1878 for a FREE no obligation quote. Visit us at www.iaeinsure.ae.