Most people shy away from the subject of insurance, even though it’s simply a risk management tool against unforeseen circumstances. Some find the numbers involved overwhelming, while others believe that insurance is strictly limited to life, cars, homes and retirements. While home and life insurance are the most common policies, there are other essential policies that individuals must explore to secure their future.
Critical Illness protection is one such policy that needs to be demystified.
Critical Illness is defined as being diagnosed by a life-threatening disease such as heart attack, stroke, cancer, Parkinson’s disease, Alzheimer’s disease, brain tumor, multiple sclerosis, renal failure, paralysis, blindness or deafness. An individual affected by any such conditions doesn’t suffer only from emotional or physical distress, but it is likely they will feel under financial duress too.
Critical illness protection is what we call a ‘living’ benefit insurance. Unlike life insurance, which pays in case of death – I haven’t come across anyone who needed money after death — a critical illness protection policy pays you money when you are alive. It protects your most valuable asset, your income.
The probability of someone being diagnosed with a critical illness before the age of 65 years is far greater than death. All the savings that you may currently be setting aside for your old age or your children’s education may not be available if you or a family member is diagnosed of a heart attack, cancer or another critical illness.
Let’s look at a case study to understand how critical illness can sneak into your life, uninvited.
Rakesh and his wife were happily married with two children and residing in Karama. With their combined income of Dh27,000 per month, the couple was saving Dh3,750 after taking care of expenses such as rent, education, food, bills etc. They had even invested in a property, a 1BHK apartment, in International City. Life was progressing decently well for this family of four until Rakesh suffered a heart attack.
He had to undergo bypass surgery and was hospitalised for a week after discharge and advised 90 days bed rest.
Bypass surgery and medicines — Dh160,000.
Rakesh’s wife on leave for three weeks.
Rakesh on leave for four months.
With the collective income of the household now on hold, how do Rakesh and family tackle the future?
This hypothetical scenario has been a nightmare reality for several families and individuals around the world. Critical illnesses are unpredictable in nature and can affect an individual anywhere, at any time. In Rakesh’s case, all his issues would have been better handled had he invested in a critical insurance policy.
The first reaction to being diagnosed is disbelief, followed by shock, sadness and anger, finally boiling down to the stressful questions of managing the treatment expenses. We all have enough worries in our lives; paying the bills if we get sick shouldn’t be one of them. This is why it is worth noting that managing a critical illness without proper cover could result in:
- Loss of income.
- Increase in household expenses.
- Childcare expenses.
- Shortfall between income and expenses.
- Retirement savings wipe out.
- Education fund of children wiped out.
- Sale of ancestral property at a loss.
Additionally there are the expenses of a private nurse in extreme situations, the home renovations to accommodate the new lifestyle, special transportation, non-covered experimental treatments and other medical expenses that are not covered by a standard insurance policy.
For someone battling a critical illness the expenses increase and income goes down. At that time it is more important to spend time with the family, spend time recouping and not worrying about finances. Worrying about finances could be one of the reasons causing a heart attack in the first place and is quite often one of the reasons of having a relapse while recovering.
While the potential recovery depends on the individual’s determination and family support, a comprehensive critical illness protection insurance policy will surely assist by alleviating the financial worries associated with these illnesses. The policy may not help with the emotional pain but it will certainly help ease the financial pain associated with surviving critical illness.
The right critical illness protection policy can provide you up to Dh4,600,000 on diagnosis of any of the covered illnesses.
Here are some statistics to get you thinking about securing you and your family’s financial future in the event of sudden critical illness.
- The UAE has the second highest rate of diabetes in the world.
- Cancer is the third leading cause of death in the UAE after cardiovascular disease and trauma.
- Smoking, stress, junk food and lack of exercise are creating heart-disease patients in the UAE 15 years earlier than in the west.
A critical insurance protection policy is planned to protect you and your family from unforeseen circumstances. Monthly investments towards the insurance policy can range from Dh65 upwards, depending upon age, the cover amount and health and lifestyle of the individual.
How often do you go on holidays and for how long? For 15 days, a month? Have you gone on a three-month holiday? Quite often people say they can’t afford it. One day your doctor could ask you to take a three-month holiday. How will you afford it then?
Here is another example for you to ponder over — your salary is Dh25,000 a month. Your employer offers to pay you Dh24,000 a month and gives you two options for the Dh1,000 per month being deducted.
- In case you fall sick with a critical illness, he’ll continue to pay your salary for one year while you recover and provide you your job on recovery
- He will return the deducted amount to you in 15 years, which amounts to a saving of Dh180,000.
Would you opt for such an option?
Protect your savings, your wealth, your portfolio, your financial future by ring fencing it with a critical illness protection plan.
Like a healthy lifestyle, critical illness protection can be your biggest gift to yourself. Talk to us or e-mail us at firstname.lastname@example.org to learn more.
Professional Indemnity Insurance is a type of business insurance for companies that offer professional services or consultations to their clients. It covers legal fees and compensation payments when a business issued by its clients and customers for a mistake the company has made in rendering its services. The coverage offered by the insurance company primarily focuses on the failure of the work or service delivered by the company that has resulted in a financial loss for their client. Professional indemnity insurance also covers businesses for mistakes including unforeseen breaches of confidentiality, professional disregard, loss of data and documents, and issues of copyright.
It does not matter whether you have a cordial relationship with your clients; a mistake small or big may potentially ruin the business relationship between you. Thus it is very crucial to take up professional indemnity insurance for your business’ sake and protection of its reputation.
Besides the above, there are many more benefits that come with Professional Indemnity Insurance.
Advantages a Professional Indemnity cover offers:
With a plethora of benefits, professional indemnity insurance is becoming more and more popular among business owners these days. Here’s a list of the key advantages that it offers.
- Regulatory obligations and requirement by clients
For some professions such as Lawyers and Doctors, having a Professional Indemnity cover is required by their respective regulatory bodies. In such cases, it is a mandatory requirement for a professional to have a PI cover.
In addition, most clients also require that their suppliers etc. have a professional indemnity cover before they hire them for any professional services. This is so that in case there is an error or omission by their supplier, they know that they will be financially reimbursed in case of a loss caused by the supplier of the services.
In short, having a PI cover is a requirement for some professions by law and for other professions, clients demand that their suppliers are covered.
- Financial safety from lawsuits:
Financial losses from litigations can throw a wrench, in the otherwise smooth functioning of your business. But, if you are covered with this insurance, the defence cost including court costs, lawyer fees, cost of filing the legal documents and so on – are covered by the insurer. Typically, it acts as a financial shield to meet legal fallouts against claims and omission mistakes.
- Increases trustworthiness of your business:
Professional indemnity insurance potentially enhances your reputation and goodwill. It gives your investors and clients the confidence that whatever services you are offering, if there are some errors, then professional indemnity insurance will provide the requisite coverage. As a reputed business owner, you are responsible for your services, and if you have invested in this insurance, you let your clients feel more confident and satisfied with doing business with you.
And above all, it gives peace of mind.
Performing consultation services with greater confidence and without stress brings great results. But if you are held liable for financial or even reputational loss because of your consultation then the whole situation puts a great burden on your business. Professional indemnity insurance, on the other hand, provides great help in such scenarios and tackles your stress by offering monetary help.
So, there you have it- the benefits you and your business will attain with the coverage of professional indemnity insurance.
But, to ensure that you get all the possible advantages and to make the most of your insurance coverage you must choose the right insurance provider. You should carefully consider the following when selecting a professional insurer.
- Consider the experience of the professional insurance provider. Make sure the insurer you choose can provide the right coverage for your kind and size of business.
- Check the credit rating of the provider which will indicate whether the provider will pay valid claims.
- Check the claims servicing department to see if they have reasonable TATs for claim payments.
- Verify whether the insurance provider is capable enough to offer adequate policies as you grow your business regionally and globally.
The success of your company is the result of your efforts and hard work, and it is imprudent to think that mistakes will not happen in the future. Therefore, protecting your business with professional indemnity insurance is an absolute need and is worth it.
Talk to an advisor at New Age Insurance Brokers who can guide you through the process of designing the right coverage and negotiating best rates and terms for the same.
With the myriad of insurance companies available in UAE, one might ask why should they approach an insurance broker. This a valid question and something that customers should ask as it is an important part of the buying decision.
And this article is about answering that very question! We will help you understand the benefits that you are going to gain when choosing an insurance policy through an insurance broker rather than directly approaching an insurance company yourself. Choosing the right insurance policy impacts your future in more ways than one, so let us help you understand the importance of brokers in the UAE.
1. Time and cost savings are massive
There are more than 60 insurance companies in the UAE. As a customer who wants the best insurance policy, you can either visit these insurance companies and compare their offers or have an insurance broker do all the work for you.
Hence you can see why you are better off engaging an insurance broker. Insurance brokerages have all the information on the different insurance plans due to their vast network. A competent insurance broker will provide you information on various insurance plans and offers from the best insurance companies without you having to raise a finger.
2. They know the trade better than you
It is always good to have an expert when you are purchasing something that you don’t know much about. And this ethos applies to insurance policies.There are many complex clauses and terms and conditions in an insurance policy. Understanding the various clauses and choosing between them can be confusing since you have limited experience compared to a broker who does this for a living.
An Insurance broker deals with various insurance policies on a daily basis as well as claims. This enables them to help you make the right purchase decision.
3. They have your best interests in mind
Insurance broker’s loyalty lies with the customer, that is you! Hence, they will not prefer an insurance company over the other unless the insurance company can offer better deal to you, both in terms or insurance coverage and pricing.
An insurance broker negotiates on your behalf and is your advocate thereby ensuring you get the best.
4. Filing insurance claims
It is the responsibility of the insurance broker to help you file claims when necessary. The whole experience of filing a claim can be daunting and having a helping hand at such times of need is invaluable.
The insurance brokers are well versed in the processes that are involved in filing claims. They will guide you throughthe whole process and help you get the rightful benefits.
5. They make things simple
Paperwork is a crucial part of an insurance policy. But when you are managing a business or have a tight schedule, going through the papers and understanding each team can be a time-intensive process.
Insurance brokers do all the work for you, helping you get the papers and other documents in the right order from the get-go. They make an arduous process very simple.
Choosing the right insurance policy is not so hard if you have the right people besides you. New Age Insurance Brokers have been helping clients choose the best insurance policy for their requirements for years. Contact us to know about the latest insurance policies that fit your requirements.
Retirement planning is all about ensuring that one is reaping the benefits of working hard during their younger years. It means that one is able to live a life of dignity and respect, that one is able to do things in their final leg of life that they just did not have the time to do.
Despite retirement being an inevitable phase of life, many of us don’t prepare for it. We tend to overestimate the time available to us to plan for our retirement. So, when retirement is actually around the corner, most of us are underprepared. This results in either working for more years than we actually planned on working and/or compromising on the quality of our retirement life.
This is validated by data that we currently have. In the UAE, a survey led by HSBC found out that only 44% of UAE citizens feel that they will be comfortable after retirement. 63% of them responded they plan to work even after retirement to some extent.
In this guide, let us walk you through the do’s and don’ts of retirement planning in Dubai and why it’s imperative that you have a plan in place.
The do’s of Retirement planning
1. Decide what kind of retirement you wish to have
Setting clear goals is the first and foremost thing one should do. These goals will be unique to each and every person based on their current lifestyle and what is it they envision for their future. So ask yourself questions about which part of the world do you want to retire in; where is it that you want to retire: your home or a retirement home; how much do you want to travel; what are the kind of things you would do with your time etc. While you may not have exact answers to these questions now, starting to think about them will help one to start visualizing your golden years.
2. Decide how much money you would need
Once you have defined clear goals, one can do the number crunching on what kind of money is required to achieve that life you have envisioned for yourself. While you are calculating the total costs, do not forget to factor in inflation. Having goals along with knowing how much money is required to achieve those goals will help make retirement planning easy, and moreover, predictable.
3. Start investing early
The sooner you start putting money aside towards your retirement, the higher the likelihood that one will be able to achieve their retirement goals. Time is a wonderful thing that helps even small amounts of money compound into large sums of money over a period of time. The later you start, the more the amount of money is required to be put aside to achieve your monetary goals, if you don’t want to compromise on your dreams.
The don’ts of Retirement planning
The don’ts of retirement planning is all about staying away from financial decisions that will hurt your retirement savings. We will discuss the key points below.
1. Don’t be overconfident in your earnings
Being overconfident in your earnings is a very easy mistake to make. Economic cycles go up and down and along with that one’s ability to earn. So saving up for the rainy day is very important so that you don’t dip into your retirement savings. In addition, there is a common misconception that the more you earn, the more you save, but that is rarely the case. We raise our standards of living along with our earnings which means that our savings remain stagnant and don’t necessarily rise with our earnings. So always keep an eye on how much you earn and how much you save. If you earn more, make sure to save more.
2. Don’t overspend
Overspending can burn a hole right through your savings in no time. In other words, don’t put want ahead of needs. Make sure you are spending within limits and not getting into the vicious cycle of debt.
3. And did we already mention, don’t wait for the last moment?
Time is money. Don’t wait for the last moment, start planning for your retirement today.
The golden years await…
Retirement planning is not something that can be done in a day or two. It takes years of planning and saving. But the result is totally worth it. And getting the right guidance at the right time is very important.
New Age Insurance Brokers can help you in that regard. We have one of the largest portfolios of retirement plans from various companies. The experts at New Age Insurance Brokers will help you find retirement plans suited to your requirements. Contact us today to know more!
Buying a house is certainly a huge milestone in one’s life. This place is now going to be the foundation of your family’s future where memories will be made and cherished. So it’s natural that you want to protect it in any way that you can. And this is the reason why more and more homeowners are gravitating towards Home insurance in Dubai.
However, Home insurance comes in many shapes and form with different benefits offered by different insurance companies. So choosing the right insurance policy is easier said than done, and most of the time, we see people either over-buying their insurance covers or undercutting the bare minimum level.
What is Home insurance?
Home insurance is a type of property insurance where the policyholder will be covered for damages and losses that may happen to their house. The insurance basically covers internal and external damages, and in some cases, even covers for the loss of personal items.
Let’s now jump into how you can choose the best home insurance policy to suit your specific needs.
Keep the valuation real and accurate
We sometimes see that the actual value of the house and its possessions is different than what they are under one’s home insurance policy. And this is a problem when it comes to opting for home insurance because the premiums that you will have to pay will depend on the valuation of the house. If you over-estimate your home, then you will be paying higher premiums that you want to, and if you undervalue your home, then in case of any adverse events like a fire breakout or water damage, the compensation that you are going to get from the insurance company will be less than what you need.
Don’t include the price of land
When you are evaluating the price of your house and everything within it, many make the mistake of adding the cost of the land it is sitting on. However, you must not factor in the price of the land when evaluating the price of your home. This will result in over-estimating and will cost you a ton in the form of insurance premiums.
Make sure to not include land as a factor when estimating the price of your home.
Pay attention to the policy details
While reviewing your home insurance, make sure that you peruse through each line. Sometimes, a line means one thing to you but in actuality means something different.
For example, a line like “all household goods located contained by your premises will be covered” might make you think that all the goods within your house might be included under the cover. However, the term “Household goods” most commonly leave out electronic devices from the mix. So asking questions and raising doubts is a good thing when you are looking for home insurance in UAE.
Home Contents Cover Vs. Personal Possessions Cover
Another area that you have to pay attention is in the insurance covers themselves as they can get confusing at times and lead you to make an error in judgment. And two of the most confusing home insurance covers are Home Contents Cover Vs. Personal Possessions Cover.
Home Contents Cover insures for the articles of value that are present in your home against damages. They are supposed to be a part of the home at all times.
Personal Possessions Cover insures for the articles of values that the homeowners carry with them against damages, as well as theft. For example, the smartphone that you carry with yourself every day comes under personal possessions cover.
Personal Possessions Cover is costlier than Home Contents Cover. So, insuring a laptop that you only use indoors in a Personal Possessions Cover will cost you more without any benefit. Carefully review the guidelines of home insurance covers to see if they may or may not come to you of use in the future.
Use discounts & offers
This is one of the most underrated tips out there as people do not think of special discounts when choosing a home insurance plan.
UAE has more than 50 licensed insurance companies and this means options for the customer. The competition between these companies is also a great thing for the customers. Many insurance companies do put out special offers and discounts for a limited amount of time.
When you own a house with a quite an expensive valuation, shaving off a few percentages here and there can lead to a whole lot of difference in the final price tag. The best way to know about these offers and discounts is to ask your broker.
So, let’s get going?
At New Age Insurance Brokers, we take the time to understand what you want to insure and shop the market so that we can get you the best coverage at the best rate possible from best insurance companies in UAE.