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Your financial plan is incomplete without these insurance

Sun 15 Aug 2021    
| 3 min read

Life is full of uncertainties and the year 2020 has made us realize this fact even better. During the coronavirus pandemic, people in the UAE region with a set of few essential insurance policies were able to deal better than those without it.

It is obvious that insurance acts as a safety net when things go wrong. It offers a cushion of financial support by providing safety and security against any uncertain event. If you are a UAE resident/expat, make sure that while planning your financial investments, you do not forget to include various insurance policies that can help in the protection of your assets and your family members in a stronger currency value. Also, remember the decision to purchase the apt insurance is related to several factors like the age of the insured, his/her lifestyle, the number of dependents in the family (kids, parents, spouse, etc.), sum assured, or amount of insurance policy and the employment benefits. Make sure to start your investments by buying the insurance policies early, so that you can reap more benefits. There are three types of insurance that everyone in the UAE must have – Health insurance, Term insurance, and Auto insurance.

Health insurance: As per the Health Insurance Law of Dubai, all the residents must have health insurance coverage that meets or exceeds the minimum benefits. Health insurance typically covers the whole or part of the risk for medical costs such as teleconsultation, surgical expenses, lab tests, prescription drugs, maternity benefits for eight prenatal appointments, and sometimes the dental costs, mental health treatment as well.

Regardless of your employment benefits, you must have individual health insurance as you would not want to find yourself facing a life-threatening illness with no way to pay for the medical expenses. So by the time a health emergency strikes, make sure that it is not too late to get affordable health coverage for yourself and your dear ones.

Term Insurance: Term insurance is necessary for individuals, especially given the current pandemic situation. Do not delay investing in the protection that is most important to look after your family if you are not there. After buying term insurance, you rest assured that your family will have complete financial support in case you happen to lose life due to an accident or any critical illness or disability where you become unable to work due to bodily injuries. In the unfortunate event of your death or disability, the term plan provides the necessary financial support to your designated beneficiaries. Term insurance plan gets you the higher value of life cover with smaller premiums. Rather it would not be wrong to say that buying a term plan is a brilliant method to assemble financial well-being for your loved ones.

Motor Insurance: Anyone who owns a car in the UAE needs motor insurance as per RTA law. By paying annual premiums, your vehicle is secured against damage or loss of the insured automobile. At a minimum, you must have Third-party liability coverage — insurance coverage for the other driver’s car, in case if you hit them. A comprehensive motor insurance coverage is the best as it offers wide insurance coverage and financial security in case you meet an accident. Otherwise, you will have to pay out of pocket to fix your car.

Buying an insurance policy will not leave anyone go bankrupt, not buying might leave several families to face trouble. Thus, insurance planning is a vital part of the financial planning process at all stages of life. Signing up for term insurance and health insurance at an early age makes one pay a lower premium. Though motor insurance is need-based, as if you own a car then according to the UAE RTA law, it is mandatory for all vehicle owners to get car insurance cover. Apart from this, several other parameters such as the benefits offered, add-ons/riders, premiums, claim settlement ratio, company’s financial health, and background need to be verified before choosing these must-have insurance policies for yourself.

-Above writeup is contributed by Neeraj Gupta, CEO- Policybazaar UAE

Disclaimer: All views and opinions expressed in The Brew View – our opinion section – are those of the authors and do not necessarily reflect the official policy or position of, the company, or any of its members.

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