Nearly half of the UAE residents do not have a life insurance coverage while one-fourth are covered against serious illness as many of them found it too expensive, reveals a new survey.
According to Friends Provident International (FPI) survey conducted by YouGov, of the 51 per cent of respondents who said they did not have life cover, 36 per cent said it was too expensive while 30 per cent of respondents were not familiar with the concept of life insurance. Another 39 per cent said they were not familiar with critical illness insurance.
The survey also showed that overall just 24 per cent have cover against serious illness. Of the male respondents 28 per cent claimed to have critical illness insurance – up from 25 per cent in 2017 – and only 19 per cent of females – down from 24 per cent last year – said they had this cover.
Chris Divito, managing director, Middle East and Africa, FPI said there is a worrying lack of understanding around life and critical illness insurance and therefore people are likely to base their decisions on factors such as brand reputation of the insurer and price.
“While it is important to consider these aspects, a financial adviser is best placed to review a range of plans from different providers, and to help people choose a plan that is appropriate for their individual circumstances; and not just based on price and brand,” Divito said.
The survey was conducted between July 16 and 22 and polled more than 1,000 respondents.
The survey results showed that brand reputation and price have the greatest influence on people’s decision to buy life and critical illness insurance in the UAE.
“Common misconception is that life insurance is expensive, which is probably why so many people in the UAE delay taking out a policy. What people don’t realise is that there are various options that work for every budget and financial situation. Financial advisers can work with you to determine how much cover your family would need to replace your lost income. For example, a 34-year-old, non-smoking male living in the UAE could secure life cover of $250,000 for a plan term of 20 years, for a premium of just $30.53 per month, on standard terms,” he said.