With COVID-19 prompting people to cut their expenses, we explain why life insurance should remain a priority in the UAE.
Why Would People Cut Life Insurance?
COVID-19 is continuing to affect the income of UAE residents and many are looking for ways to tighten their purse strings and cut expenses wherever possible. Whether it’s through reduced hours or job losses, the pandemic has massively affected the earnings of much of the UAE’s workforce. According to predictions by Oxford Economics, UAE could lose 900,000 jobs (around 10% of the UAE’s population). And, without social welfare schemes to help them see out the remainder of the pandemic, it’s not surprising that people are looking to cut expenses that they can live without.
Life insurance has a low uptake in the UAE. For those with a policy who are facing a loss of income from the pandemic, it could very tempting to see life insurance as an expense that you can live without. The UAE’s 90% expat population means that the demographic tends to skew younger. And, as a younger person, it can be easy to think ‘life insurance isn’t for me’ or ‘I don’t need life insurance’. After all, it can be difficult to see how you could be afflicted with a debilitating or long-term illness. But the worst can, and does, happen. COVID-19 has shown this to be the case and people that never would have thought the worst could happen to them or someone close to them, have been shown the real-world consequences of not taking proper precautions. So, why should life insurance stay at the top of your priority list?
Why Life Insurance Should Remain a Priority.
- Funeral Costs. Aside from the obvious emotional implications of losing a loved one, there are also practical costs to consider. The cost of funerals can quickly spiral out of control and these can be crippling for a family’s financial future – especially if they’re also contending with the loss of the deceased’s income. A life insurance policy can help cover the cost of funerals and help to alleviate some of the financial strain of bereavement.
- Protecting Your Loved Ones. The purpose of life insurance is to protect the futures of those you love. If you have financial dependents, then you need life insurance. In the event that you are afflicted with a long-term illness or become deceased, then your loved ones will have a whole host of death-associated costs to contend with, as well as the more general loss of your income. Without this, the cost of living in the UAE can quickly become unmanageable and force people to uproot their lives and move elsewhere.
- Critical Illness. Medical bills in the UAE are expensive. While medical insurance is compulsory, if you are faced with a protracted battle with illness then costs can quickly reach unmanageable sums.
- Contain cost while you’re young. Taking out life insurance while you are younger helps to contain the cost and allows you to save considerable amounts in insurance premiums whilst covering for unforeseen eventualities.
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 info@iaeinsure.ae or call +971 4 396 1878 for a FREE no obligation quote. Visit us at www.iaeinsure.ae
