As expats, we always want to compare costs and benefits, for all products and services we use in UAE.

If a cheaper or better alternative is available in India, then we prefer using it for obvious reasons…

Term Insurance plans are such products, where a lot of comparisons happens between plans in UAE and India.

This post provides 8 reasons Why NRI should buy Term Insurance/Assurance in UAE.

It also shows you how to identify the best term insurance in UAE, to protect loss of income due to death, disability and most importantly due to the diagnosis of a major critical illness.

1. Wide and transparent Scope of Critical Illness Cover 

Term Insurance Plans in UAE offer a very wide scope of critical illness cover, covering up-to 35 critical illnesses.

Thanks to medical advancements, people are now living longer lives, but not necessarily healthier lives. The following are some of the health statistics pertaining to UAE and GCC;

  1. The average age of critical illness insurance claimant in UAE is 47. The youngest age of a critical illness claimant is 20.
  2. The Health Authority Abu Dhabi (HAAD) claims that UAE school children are 1.8 times more obese than children in the US.
  3. More than 66 percent of men and 60 percent of women in the UAE are overweight or obese
  4. Obesity in the UAE is the number one cause of “lower disability-adjusted years,” which is a measure of years lost due to poor health, disability, or early death.

    Term Insurance UAE

    By DALY_disability_affected_life_year_infographic.png: Planemadderivative work: Radio89 . This file was derived from  DALY disability affected life year infographic.png: , CC BY-SA 3.0,. https://commons.wikimedia.org/w/index.php?curid=20278903

  5. Heart disease is striking 20 years earlier in the UAE, than other parts of the world
  6. UAE children have cholesterol levels found in 60-year-old men
  7. One in five in the UAE is diabetic
  8. Noncommunicable Diseases (NCD – like diabetes, heart disease, cancers, chronic respiratory illnesses) are responsible for more than 60% of all deaths in GCC countries

Given the adverse health statistics, it is important to have an adequate and comprehensive critical illness cover, protecting your income at least for 3 to 5 years, in the event of diagnosis of such dreadful disease.

Thankfully Term plans in UAE cover up to 35 critical illness and would pay on the diagnosis of such critical illness.

The scope, definition and limitations of critical illness cover offered by leading insurance providers in UAE like Zurich international life, Friends Provident, Metlife, Salama and Arab Orient are well defined.

Each company has an exhaustive list of critical illnesses covered with well-written benefits definition, scope and limitation, eliminating ambiguities at the time of applying for cover and at the time of claims.

Critical illness insurance in UAE2. Critical Illness Cover up to age 74:

Insurance companies like Zurich international life offer critical illness cover up to age 74.

While there are risks of a person developing critical illness at an early age, the chances of getting critically ill become higher as the person becomes older.

Plans in India have a very limited scope of critical illness and they usually cover up to age 60.

3. Critical illness cover up to $1,250,000

Many insurance providers in UAE offer critical illness cover up to $1,250,000. Providers in India only offer less than $150,000 and for 30 or lesser number of years.

It is recommended to have at least 3 to 5 years of income as critical illness cover.

4. Transparent and comprehensive underwriting:

Thanks to vast experience in covering critical illness, insurance providers in UAE have developed a transparent and comprehensive underwriting system, enabling them to ask the right questions and conduct adequate tests before accepting risk on a term insurance plans.

This comprehensive underwriting activity, eliminates the possibility of delays during claims, hence the providers in UAE have very healthy claims settlement records on critical illness and life insurance claims.

5. Ease of Claims: 

Thanks to the vast experience gained by operating in many countries, international insurance providers like Zurich, Friends Provident, Metlife and Salama have developed a robust system of claims processing and settling.

Companies like Zurich, Friends Provident and Salama provide a well-developed customer support via their call centre and their offices across UAE.

6. Internationally Portable and Tax efficient plans:

Term Insurance plans in UAE are portable internationally. They continue to cover the insured during their travel and after a change in residency for all the benefits availed as a resident in UAE.

Continuity of cover when changing residency from one country to another is a very important and helpful feature of term plans in UAE. Otherwise, the cost of insurance would go up every time the insured has to buy a new policy when moving to another country, as the insured would older than before, and also the risk of non-insurability increases.

7. US Dollar Denominated Plans:

All insurance providers offer Term Insurance plans in US Dollar denomination, which is an ideal risk against a falling rupee. Rupee value has been constantly depreciating for the last 40 years, and more rapidly in the last few years.

Given the rapidly growing population in India, which has to be fed, clothed, entertained and treated for medical ailments. India has to rely on imports largely for crude, coal, edible oil technology, medicines, defence equipment and many many more…

The constantly increasing demand for imported goods and services will create more demand for US dollar, which is a medium of exchange for international transactions, further depreciating the Indian rupee.

The adjacent chart shows the extent of rupee depreciation in the last 5 years, highlighting the adverse impact on your rupee denominated insurance or investment plans.

Term Insurance NRI

Indian Rupee has depreciated by more than 34% in the last 5 years, almost at the rate of 7.00% per year

8. Easy access to Insurance Proceeds: 

As Term Insurance plans in UAE are portable, in the unfortunate event of claim, the proceeds can be paid out in any part of the world, making it easier to pay for money requirements outside India like;

Term Insurance UAE

“Image courtesy of jscreationzs / FreeDigitalPhotos.net”.

  • Paying off loans and mortgages of an expat
  • To enable the family to continue living as expats in UAE or any other country. This allows the children to complete their education up to a certain age
  • Paying for higher education costs for studies abroad
  • Enabling the insured and his family to continue to live in UAE in the event of diagnosis of a major illness, without worrying about paying bills, as the bills can be paid out of insurance proceeds.

Access to funds outside India from insurance proceeds of plans in India can be very challenging, involving complex approval processes and tax implications, and unnecessary currency loss and charges.

Summary

The above mentioned are some of the points an expat should consider when looking to avail a term insurance plan in UAE.

What about you?

Have you covered adequately for loss of income due to death disability or most importantly critical illness?

If not, what is stopping you?

Call me now to understand how easy and affordable it is to avail term insurance in UAE. Or fill the following form to schedule a free consultation.


Statistics Source: http://www.intelligenthealth.ae/hic/7-seriously-crazy-uae-health-statistics/

“Image courtesy of jscreationzs / FreeDigitalPhotos.net”.

 

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