May 19, 2020 Posted By: Yallaschools

Why Everyone Should Have Insurance?

People have car insurance, home insurance, travel insurance… but life insurance?

Fact: Life is unpredictable. But we often ignore this, especially when it comes to taking a life insurance policy. Research indicates that at least one in three UAE residents does not have a life insurance policy*.

If everything is smooth, why worry about an emergency? Sadly, a tragic life event and lack of planning can literally ruin the financial future of your loved ones, especially your children.

Here’s why life insurance is critical for every household.

Life insurance replaces family income

A tragic life event can have a psychological, emotional as well as financial impact on your family. Critical illness can impact savings drastically, making insurance a reliable backup plan. Additionally, in the event of your demise or permanent disability, your family continues receiving an income to sustain their lifestyle.

Life insurance pays for children’s education expenses

Every parent wants the best for their child, starting with picking the best schools, extra-curricular activities and planning for their college education. Having adequate life cover provides sufficient protection for these events to happen even if you are, unfortunately, not present.

Life insurance can help in paying off debt

News articles indicate that over half of the population in the UAE has some form of personal debt. Having debt is fine as long as it’s manageable, but in case of a life-changing event, debt could literally derail the financial wellness of your family. Sufficient life insurance coverage could help handle existing debt in the future.

Life insurance provides a financial safety net to your family

Finally, life insurance pre-empts emergency situations and takes the pain out of the “didn't see it coming” factor.

The earlier you take insurance the better as premiums are lower when you are younger. As soon as your children turn 18, it’s advisable to take out life insurance policies for them as their premiums will be lower and ultimately benefit them in the long run.

3 Things you must consider before purchasing life insurance cover

  • Identify required financial coverage: seek professional assistance in identifying the amount of cover your family will require for all of their financial needs.
  • Check for exclusions in the policy: be careful when reading the terms and conditions of the policy. We understand that it could be tedious, but it’s a critical step towards the financial security of your family.
  • Check customer feedback, reputation, and claim-settlement ratio: pay special attention to their claim-settlement ratio.

Bottom Line

Choosing a life insurance policy could be overwhelming, so do not hesitate in seeking help. A life insurance policy is a vital component of the all-round protection of your family. If you’re ready to take the first step towards providing financial assurance to your family, kindly visit https://www.sc.com/ae/insurance/

 

*survey conducted between October and November 2015 among 1000 residents in Dubai


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