Critical Illness Insurance: Be Prepared for Everything that Comes Down the Road

Critical Illness Insurance

A critical illness insurance plan allows the policyholder to get a lump sum amount if they are diagnosed with a critical illness. It can cover both hospitalization and non-hospitalization expenses and also provides you with much-needed cash flow while you are recovering.

However, many people wonder why they would need a critical illness insurance plan when they already have a comprehensive health insurance plan. To be honest, there are times when your regular health plan may not be able to cover all your treatment and related expenses if you happen to be diagnosed with a critical illness, such as cancer, or you would need a major organ transplant in the future.

 

Why Should I Bother to Purchase a Critical Illness Insurance Plan?

According to the Friends Provident International report, around 4,500 cases of cancer are diagnosed every year in the UAE. What’s more alarming is that the average age of people suffering a heart attack in the UAE is 45 compared to the average age of 65 globally.

Thus, rather than going with “it won’t happen to me” mentality, you should start looking for ways that will help you prepare for a better future with more financial stability no matter what comes down the road in terms of your health.

Do you want to know how much critical illness insurance cover you will need? If yes, you can simply get a rough idea of the required sum assured by using a critical illness insurance calculator.

 

How does a Critical Illness Insurance Plan different from Regular Health Insurance Plans?

When you have a critical illness insurance plan, the insurance company will pay you the Sum Assured if you are diagnosed with a critical illness covered in your plan. For instance, if the Sum Assured under the plan is AED 500,000, you will get AED 500,000 at once on the diagnosis of the critical illness. The amount is paid whether you choose to get the treatment or not. You have complete freedom to use that amount as you wish.

A Critical Illness Insurance Plan is renewable for lifetime; however, as soon as you are diagnosed with a critical illness and you are paid the Sum Assured by the insurance company, the policy gets terminated.

On the other hand, regular health insurance plans, which are just indemnity products, compensate only to the extent of actual expenses incurred up to the ceiling of the Sum Insured. For instance, if your Sum Insured is AED 500,000 and your hospitalization bill is AED 100,000, the insurance company will pay only AED 100,000 and the policy continues.

Additionally, health insurance plans are renewable plans i.e. based on the claims of the previous year, the insurance company can decide how much premium to charge you. In case you are diagnosed with a critical illness requiring multiple years of treatment, in most likelihood, your medical insurance premium, at the time of renewal will sky rocket.

These are reasons how critical illness insurance plans are distinct from regular health insurance plans.

New Age Insurance Brokers LLC is the leading insurance brokerage in Dubai and represents more than 25 local and international life and general insurance companies. Our experts will help you find and get the best critical illness insurance policy and also determine the more precise cover you will need to protect yourself from unanticipated critical illness expenses. You can even get a rough estimate of the required critical illness cover based on your monthly income and monthly expenses by using our critical illness insurance calculator. For more queries, free feel to contact us.

Retirement Planning for Safer, Stable, and Comfortable Living

retirement

Can you imagine living comfortably after retirement? Most people would say yes to this because they will no longer be working in offices full-time. Now, tell us, would you have enough savings to enjoy your life and plan vacations after retirement? Here comes the real dilemma.

 

Most people think about enjoyment after retirement but don’t account for the fact where they will be getting the money from. Some people might say that they will get the service gratuity for that. But is it enough?

 

To be honest, the amount you get as service gratuity is often nominal that won’t even allow you to fulfill basic, let alone it being enough for shopping, vacation planning, and all that you might have dreamt about after retiring.

 

Thus, if you really want to enjoy and live comfortably later in your life, you need to prepare a thorough investment plan

 

What You Need to Know to Grow Your Wealth for Retirement

 

Savings and Investments

There should be enough income flow every month to achieve a financially independent life post-retirement. Steady income flow is only possible when you have savings and investments i.e. you have a sufficient nest egg. You can easily calculate how much you would need for retirement by using our online calculator. Once you have figured out how much you need for your retirement, it is time to figure out how to get there.

 

Diversification of Investments

One has to systematically build up their savings and discipline is key. Based on your risk tolerance and financial goals, you can choose from several investment options available in the market. Remember that “risks and returns go hand-in-hand”. So, don’t put all your savings in one place. Diversify your investments into various portfolios to reduce the risk factor and earn good returns simultaneously.

 

Investing in the Home Country and Foreign Countries

People living in the UAE tend to invest in the UAE itself because the UAE allows ex-pats to invest regardless of their nationality and offers lower taxation obligations compared to other countries. However, you are not restricted to the UAE. You can step into the outside world and consider investing directly in locations like U.S., India, Europe through various platforms and across multiple asset classes. But before investing, don’t forget to factor in tax benefits, security, asset protection, investment cost, and currency fluctuations.

 

When it comes to investing, you have a plethora of investment options, such as real estate, bank fixed deposits or term deposits, stocks, pension schemes, mutual funds, gold, and so on.

 

What to Consider While Planning Your Retirement

 

The Right Age to Start Saving – There is no particular age to plan for retirement. The earlier you start to save, the better your life will be after retirement. It is usually recommended to start saving in your early 20s and 30s because, during this age, people have a higher risk tolerance and can save more because the time to retirement is longer.

 

Determine how much retirement fund you need – You should calculate it based on how much you need to live after retirement comfortably and what plans you have for your retirement. Consider all potential costs, including medical emergencies, routine healthcare checkup costs, and vacation costs based on places where you will want to go. Take inflation and rising healthcare costs into account; otherwise, the amounts you are planning to earn for retirement living might not be sufficient.

 

Apart from inflation, you should also consider taxes because economic conditions are volatile and, sometimes, unpredictable. Besides, you should not disturb your emergency funds as they will help you during critical situations.

 

Risk Factors – Before choosing an investment portfolio, do homework on the risks involved. If your retirement is near, investing in high-risk options could be a huge mistake because the risk tolerance decreases with age and you don’t want to risk your hard-earned money. In case you have 25 to 30 years for your retirement, you have more freedom to explore different options.

 

For a lot of people, retirement could be two to three decades later from now, and thus, they tend to postpone their retirement planning. Eventually, when they will realize the importance of retirement planning, it becomes too late to save and invest much. Thus, start looking for smart avenues and start taking action to prepare the best investment plan after retirement as early as you can.

 

At New Age Insurance Brokers, our expert advisors will help you go through different investment options along with their pros and cons to properly plan for your financial stability after retirement. For more info, email us at info@newageib.com.

Mistakes People Make When Purchasing A Life Insurance Policy

life insurance

In Dubai, health insurance is mandatory, but residents are not required by law to insure their lives. However, with this pandemic an ever-increasing number of Dubai residents are seeing the emotional and financial havoc death can cause to a family. Hence there is a growing recognition of the significance of buying a life insurance policy.

Life insurance companies in Dubai can protect your family from financial difficulty due to the premature loss of an income earner or the stay at home spouse.  Choosing the right policy for your specific need can be confusing with the range of options and providers available.

Buying life insurance in Dubai is not without its pitfalls. Mistakes can lead to situations where the expected payout doesn’t materialize, or it might not cover all the angles or meet all the requirements. Here are some of a few common mistakes that you need to avoid when buying life insurance in Dubai.

 

  1. Not doing a proper financial plan

Buying an insurance policy without thoroughly assessing your current financial situation and your future financial obligations is a mistake that generally everyone makes. It is highly unlikely that you will get the appropriate cover for your specific needs if one does not sit down and properly calculate the various financial commitments that would need to be fulfilled in case of death. Also, without a proper financial plan, one would not be able to identify the right budget to set aside for this project. Hence, before selecting a product or a cover, one should sit down and prepare a proper financial plan.

 

  1. Choosing the wrong type of policy

Before buying life insurance in Dubai, you need to understand the different types of policies available. A term policy pays out a specific death benefit and runs for a set period, e.g. for a 20-year policy, one pays for 20 years and gets a cover for 20 years. On the other hand, a permanent life insurance policy stays in place indefinitely throughout life and allows you to build cash value that can be drawn against later.

 

A term policy is ideal if you want a low-cost cover and don’t expect any returns from the policy.  A decreasing term policy is a sub-set of a term policy wherein the cover reduces over a period of time. This policy is typically suitable for a mortgage. A permanent policy is an excellent choice if you want a plan that will earn some returns on your investment.

 

  1. Not reviewing the insurance policy on a periodic basis

People think that they have to buy a policy once and never have to look back and that is incorrect. As you go through various stages of life, your insurance need will change. So, reassess your insurance needs with every significant change in your life such as a marriage or having a baby. This will ensure that your coverage matches your actual requirements.

 

Also, in case of a permanent life insurance policy, one should periodically assess how funds in the portfolio are performing and if any adjustments need to be made before it is too late.

 

  1. Treating insurance as a short-term investment

Treating life insurance exclusively as an investment and expecting rapid returns is not advisable. Exiting the policy far in advance of the maturity date can potentially result in significant surrender costs. Hence, you should treat life insurance policy as a long-term financial commitment and have the discipline to stick with it.

 

  1. Only comparing rates

Firstly, people make a mistake of choosing a policy based on the lowest price they see, opting for less benefits than they actually require, and that leaves their dependants out of pocket in a time of need.

 

Thus, the cheapest plan based only on your age and desired payout sum may not serve you in the long term. It is essential to compare rates and the benefits from several insurers and assess the difference in coverage. After that, review your budget to see what you can cut back on, rather than choosing less than sufficient coverage.

Conclusion

Buying a life insurance policy without reading the fine print can lead to disappointment later. For e.g. when you find that the premiums you have paid on a term policy did not accrue cash value. Therefore, it is best to consult professional insurance brokers, ask a lot of questions and ensure that you understand the benefits of the policy you are buying before signing.

Medical Insurance for Elderly Parents

medical

Over the years, medicines have made immense advancements, and that has led to an increase in life expectancy. On the other hand, there is an increase in the cost of medical treatment.
In the UAE, regardless of the profession and age, health insurance is mandatory. As people age, the list of ailments increases and the risk of repeated hospital visits are more. Considering the rising cost of healthcare services in Dubai, it is better to buy separate medical insurance for your elderly parents.

But before getting your parents a health insurance cover, there are a few factors to consider.

1. The Age Factor:
The age of the person insured is the biggest difference and barrier to entry between health insurance for senior citizens and health insurance for younger people. Since health insurance is mandatory in the UAE, insurance companies cannot decline cover to any person regardless the age of the parents.

2. In-patient hospitalization:
In-patient hospitalization coverage is given by the insurance company, for the medical expenses incurred by the policyholder when they get admitted to the hospital. It should cover hospital expenses like medical tests, doctor fees, medicine etc.

You need to look at the sub-limits for certain expenses. Since the number of hospital stays might be higher for a senior citizen, it is essential to choose an insurance that gives your parents maximum in-patient coverage.

3. Pre-existing Illness:
Pre-existing medical conditions or diseases means that an individual is suffering from a medical condition before taking a health insurance policy. If your parents have pre-existing illnesses, check for the terms and conditions regarding pre-existing illnesses when looking for a health insurance policy.

Pre-existing limit depends on the underwriting evaluation of each insurance company. If a pre-existing condition was declared during the time of application, coverage will for the same depend on the approved limit. For Dubai visa holders, the minimum limit for pre-existing and chronic conditions is AED 150,000 even if the total sum insured is AED 1 Million for some insurers. For Northern Emirates visa holders, pre-existing and chronic condition cover is not mandatory. However, it is mandatory for those living in Dubai and or Abu Dhabi.

4. Waiting Period:
The waiting period will restrict your parents to get risk cover for a certain period, especially for pre-existing and chronic illnesses. Waiting period depends on which Emirates the visa was the insurance policy issued. For Northern Emirates, some insurance companies require 1 year or 2 years waiting period. Once this period is over, your parents become eligible to get the required insurance cover. When looking for health policy for your parents, consider a policy that has a lesser waiting period for pre-existing illnesses.

5. Sum Assured:
Senior citizens are more prone to health risk than younger people. So, you must try and get them a sufficient size of health insurance cover. When looking for health policy for your parents, assess the existing ailments and future risks to determine the exact health cover requirement.

However, some companies put a limit on the maximum health cover allowed for the senior citizen which is equivalent to the minimum limit required by the relevant regulatory authority. For eg: the minimum limit in Dubai is AED 150,000 and in Abu Dhabi, it is AED 250,000. In such cases, one may look at more high-end plans which provide higher covers but at higher costs as well.
You should know that there are other factors to consider when buying the insurance policy like room rent allowance, out-patient expenses etc. However, to select the best health insurance policy for your parents, you can contact us. We at New Age Insurance Brokers will be more than happy to support you with the same.

Top reasons why you need retirement planning

Retirement planning is the financial support, in form of savings and other physical assets, for financial independence in your old age. It is aimed at giving you a relaxed lifestyle with enough money in your hands so that you can live the way you want without being a burden on anyone else. Retirement planning starts with planning your retirement goals such as where you want to live, how much you want to travel etc., and how you are going to fund them. It is a multistep process conducted over a period of time during your working days so that you can have a secure, comfortable, and fun life after your retirement.

Retiring at 60, cannot be taken for granted anymore. Advances in health care mean we are living longer lives and for long lives, we need more money. So, most people who don’t plan their retirement end up working well into their 60s and sometimes even into their 70s. Working for the fun of it is one thing but working out of compulsion, just because one didn’t plan sufficient finances takes a toll on one’s golden years. It is always a better idea to plan for your financial independence even if you have a supportive and caring family because you never know how people change and perhaps even if the right intention is there, family members may just not be able to support you financially in your old age if they have their own family commitments. Many people suffer a lot during their retirement when they are forced to live alone without proper financial support. This is why you need to be prepared for all kinds of situations and think seriously about your retirement goals.

Retirement planning is the process of identifying your retirement goals, expenses, savings, emergency situations, and your sources of income for a secure and independent life. Here’re some key reasons why you need to plan for retirement.

Medical emergency: Retirement planning means you are planning your life after the age of 60 that means different health problems may arise with rising age and you should be prepared for that. Medical expenses are the biggest financial support that someone needs in post-retirement life. With enough savings and a good medical insurance plan shall mean you will be well-taken care of during any emergency medical condition.

Your pension plan: Private sector employees usually don’t have any state-sponsored pension schemes like government sector employees and they should plan it by themselves. Pension is like your regular income post-retirement to pay for your day to day expenses. You can invest in different investment plans or buy a retirement plan that guarantees monthly pension after your retirement at a certain age. If you are on your own, a pension is like your social security during those days.

You are your own family: Long gone are those days when families live together and support each other. With a rapidly changing family culture, you need to plan for your monetary support and social security to ensure that you will have enough savings for staying separately. In today’s competitive lifestyle, children are also forced to achieve more in their life and sometimes even they have to relocate to another country for their jobs. You should also consider this scenario while planning for retirement at 60.

You can start your retirement planning at any stage of your professional life. The earlier you plan for this the smaller amounts you need to put away to secure your future. The later you start, the harder it gets. Now is a good time for you to start planning for your golden years.  This is the best time to determine your retirement planning goals and investment strategies. You can contact New Age Insurance Brokers and one of our qualified financial advisors will help you with your retirement planning and financial strategies for a secure and financially independent post-retirement life.