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.
So, you have decided on getting life insurance for your loved ones. Fantastic! Now it is time to get into the details and learn about “Riders.”
Riders are optional add-on coverages that you can tag on to your basic life insurance policy. Riders bring customizability to the world of insurance policies. With Riders, you can tailor the insurance policy to meet your specific needs. You can add certain benefits or limit certain aspects of your insurance policy and they only cost a fraction of the life insurance policy.
Like life insurance policies themselves, the Riders and their associated perks differ from insurer to insurer. Hence, it is always advisable to study the specific Riders offered by various insurance providers before committing to any.
Most Popular Life Insurance Riders
Now we come to the most important bit where we will discuss the different Riders that one can choose from depending on one’s needs:
Critical Illness Rider: This is one of the most sought-after benefit as lifestyle diseases are on the rise. This rider provides monetary support in case the policyholder is diagnosed with one of the listed critical illnesses such as multiple sclerosis, heart disease, cancer etc. A lump sum, as per the policy, will be granted to the policyholder regardless of the total amount required for the treatment.
Hospitalization Benefit: This Rider provides for medical and non-medical expenses for the policyholder in the event of hospitalization. A fixed benefit on a per diem basis will be issued by the insurance company. Most insurance companies typically require a minimum number of days at the hospital before this benefit kicks in.
Term Conversion Rider: Normally, Term life insurance policy only covers for a limited amount of time, ranging from 10 to 30 years. However, when the policyholder goes to get another policy, the holder may not get the same coverage benefits that they had. This arises due to the fact that the medical checkup may not make the policyholder eligible for the same benefits that they had while they were 10 or 30 years younger. Term conversion rider helps the policyholder to convert existing term life insurance to permanent life insurance without requiring a medical exam.
Permanent and Total Disability benefit: This is a living benefit wherein if an insured becomes permanently totally disabled, a lump sum is paid out to the policy holder. This benefit helps the family to cover the loss of income and bear the necessary expenses that comes with a disability. The life cover sum will not be reduced if a valid claim for PTD is presented.
Accelerated Death Benefit Rider: This rider provides a portion of the death benefit coverage for the medical bills of the policyholder if s/he is diagnosed with a terminal illness. This is very helpful for covering immediate medical bills and enabling the insured to live his or her last days with dignity.
Family Benefit Income Rider: In addition to the lump-sum an insurance policy provides to the insured’s beneficiary, this Rider provides the family of the policyholder with regular monthly income after the death of the policyholder for a certain pre-determined period of time.
Waiver of Premium Benefit: This rider helps with writing off future premiums of a policyholder if they are totally incapacitated due to a terminal illness or accident as stated within the policy conditions. The policy will continue without requiring premiums to be paid by the policyholder or policy owner.
Dismemberment Benefit: Provides the policyholder with a lump sum if they suffer a loss of limb or sight due to an accident, as stated within the policy conditions.
What riders should you pick?!
Riders are a great way to get additional benefits from a life insurance policy without having to pay the hefty premiums for stand-alone policies covering those same benefits. However, not all riders are for everyone.
Experts from New Age Insurance Brokers are here to guide you through the entire process. We partner with all major life insurance companies in Dubai to provide the right cover for you. Contact us at +971 4 3573378 or email us at email@example.com to know more.
– Savitha Shetty
Buying a life insurance policy is an important financial decision. Life insurance policies, as the name suggests, are long term contracts. Hence before signing up for something that essentially lasts you a lifetime and beyond, it is imperative that one asks these 5 important questions to your prospective financial adviser.
Question 1: The insurer’s rating and claims process
Given that an insurance contract is a promissory note, it is very important to understand the financial standing and the claims process to ascertain whether the insurance company will be able to keep the promise made to pay a claim in the unfortunate event of death.
One can ascertain an insurance company’s financial standing by reviewing their ratings. These ratings are done by agencies like Standards and Poor’s or Moody’s, to name a couple. One should opt for an A rated company when purchasing an insurance policy.
Even if a company is A rated, one should enquire into the insurance company’s claims pay out process and percentage of claims paid out. Most renowned insurance companies have a simple claims pay out process and pay out majority of their claims within 5 – 10 working days of having received all required documentation.
Question 2: Financial Advisers experience and qualification
Similarly, a financial adviser’s pedagogy is very important. If the financial adviser is pursuing this role as a full-time career to start with and is armored with the requisite qualifications to provide professional advice, there is a high likelihood that you are in safe hands. In the UAE market there are many advisers but very few who pursue this as a career and are committed to providing long term quality service. In addition, many institutions like banks also act as a financial intermediary and sell insurance policies. However, many of their sales people aren’t qualified to sell Life insurance products. So, make sure that you understand your financial advisers experience and qualifications.
Question 3: The amount of Insurance required.
Life Insurance is a replacement of your income to ensure that your family continues to live in the same manner as they do today financially, in case you are not around. Hence it is important that one buys adequate amount of life cover.
The rule of the thumb is normally 7 to 10 times one’s present annual income. However, it is important to discuss your life’s present financial situation and the objective of buying the policy with your adviser. The adviser will work on these details and advise on the amount of cover required. However, you as policy buyer need to ask pertinent questions as to how this number was arrived at. Normally most advisers will base their working on the liabilities of your life, may be a mortgage payment / loan repayment, future expected major expenses, your present lifestyle to name a few important factors. Provisions made to achieve the future goals will also be factored in and a sum arrived at.
Question 4: What are the benefits in this policy and when will this be paid?
There are 2 types of policies one which is a Term Policy normally taken for a fixed term. The other is for a longer term, either an endowment or variable unit linked policy. It is important to know until what age does your policy provides cover. Does this tenure address your needs?
In addition, Term policies have no cash value and only pay out in case of death or disability as applicable. The variable unit linked policies also have cash values. Please check if this guaranteed or variable as per the market factors. Some plans do allow partial withdrawal.
If there are living benefits attached to your policy like a disability benefit or critical illness, one needs to understand the conditions under which these benefits are payable. In some critical illnesses certain terms and conditions are involved for payment of claims. One needs to ask these questions to be better informed and to avoid unpleasant surprises in the future.
Question 5: What happens If I can’t pay the premium?
Term policies have no cash values and offer a grace period to pay the premiums, if not paid by then the policy lapses. However, some variable unit linked policies do offer flexibilities, popularly called premium holiday, after a certain period of premium paying.
Life evolves and so do conditions change. It is important to know how much FLEXIBILITY these policies offer to adapt to ones changing needs.
I hope that you ask all these 5 questions to your financial adviser before you make a commitment. We at New Age Insurance Brokers in UAE, are always available to answer any additional questions you may have.
*(Please note that product features if any discussed in this article pertains to the UAE regulatory market and can vary with other markets mainly in terms of terminologies used)