Why do people think they don`t need life insurance?
The misconception with life insurance is that YOU don’t need it in most cases. Most of my clients that choose to insure themselves don’t need it. The reason they are taking a life insurance is that their family needs the money when they pass away. Who is capable to pay for the fixed cost (rent/mortgage, car and all other bills)? How can the children be funded when they go to university? Can your family maintain the same lifestyle if you aren’t around anymore? These questions are crucial for people when they consider life insurance.
Some expats think they will never get paid if they pass away. There are life insurance companies with 98% payout ratio and the 2% that hasn’t been paid out is because they have lied on the application form about their health condition or lifestyle.
An insurance barometer study shows that 8 out of 10 people (80%) overestimate the true cost of life insurance.
A lot of people don’t like to talk about death, passing away or critical illness. One of the biggest insurance companies in the Middle East has provided data about the average age of people that claim for life insurance, this is 51 years. The same company provides data about the average claim for Critical Illness, this is 49 years in the Middle East.
It is important to realize for expats that if they suffer a critical illness they are not protected by law as an expat in UAE to get a salary. You have to take responsibility for the future of your family yourself.
Posted on Thu, October 22, 2015
by Simon Snelder filed under