Two out of three expats and residents living in the United Arab Emirates have no life insurance, according to a new survey.
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And only one in five have bothered to take out critical illness cover to look after them and their loved ones if they suffer an accident or serious illness that stops them from working.
The research, by life insurer Friends Provident International asked UAE residents why they had no cover.
A third claimed life insurance was too expensive, while one in four were ‘unfamiliar with the concept’ of insurance.
The figures were slightly higher for those who had no critical illness cover – with 28% arguing the cost was too high and 37% unfamiliar with the concept.
Cause for concern
Marcus Gent, the Friends Provident International managing director for the Middle East and Africa, said: “It is quite disturbing that the number of people without life insurance has increased in the last year, and the number without critical illness cover is also a cause for concern.
“I appreciate that no one likes to consider their own mortality or to think about becoming seriously ill, but it is important to think about the potential impact on a family if the worst should happen.
“Protection should form a cornerstone of any robust financial planning. Life and critical illness are important areas to consider and should never be overlooked.”
Life insurance pay out on the death of the insured, while critical illness cover pays when they are diagnosed with a serious illness.
Fewer women have life cover
Insurance will also protect a loan or a business should an important employee suffer a serious illness or die.
“Life insurance and critical illness insurance are probably the only things you buy and hope you never have to use,” said Gent.
“The cost implications of not having such insurance cover if the worst should happen is likely to far outweigh the amount of premium necessary to secure a reasonable level of cover.
“I am concerned that so many respondents said they were not familiar with the concepts, and this is something that needs to be addressed.”
The research also showed fewer women had life cover than men – 37% compared with 45% of men, while 18% had critical illness cover compared to close to one in four men.
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