Accidents, as the name suggests, are inherently unpredictable. They can happen anytime and anywhere – whether you are at home, at work, or even on vacation. A small slip in the house, accidental tripping on a staircase, injuring yourself while playing football, or a road accident can have long term implications for you and your family. As per the facts released by WHO, approximately 1.35 million people die each year as a result of road accidents. Far more are injured. These injuries can be temporary or permanent.
Accidents leading to disability, death, or long-term illness can make you and your family emotionally and financially weak. So, while one cannot predict an accident, one can definitely be prepared for the same. Personal accident cover can soften the financial impact of such an unfortunate event. Let’s see how.
What is Personal accident insurance/cover?
Personal accident insurance is a policy that offers financial compensation or reimburses the medical cost in case of total/partial disability or death caused by accidents. In case you meet with an accident and get disabled or lose your life, the policy will ensure financial stability for you and your family, respectively.
Major areas that are covered under Personal accident insurance are:
- Death after the accident- It’s an unfortunate but bitter truth. You might lose your life after a severe accident. In such a case, the nominee in your policy will get accidental death compensation. So, you should always add the name of the nominee while applying for the personal accident cover.
- Total disability- An injury or condition may result in total disability, preventing you from performing any work at all. It is a severely debilitating situation whereby you are not only losing your ability to work and thereby earn income but also requires major medical expenses and increases your cost of living expenses as many adjustments need to be made in the house to allow you to live comfortably. In such circumstances, a personal accident cover can not only cover medical expenses but also provide monthly payout to compensate for the loss of income and additional expenses.
- Partial Disability- Partial disability, while not that severe, can still result in one’s reduced ability to perform all physical functions. Reduced physical functions can impact one’s ability to earn and might also require some minor accommodations to be made to allow one to work and live at fuller capacities. As in total disability, personal accident policies can payout for both medical and non-medical expenses, related to the partial disability.
Depending on the kind of personal accident policy, in some cases, the insurance companies pay for the transportation expenses that were incurred by your family to reach the hospital. Also, the policy covers hospital costs, including ambulance costs, funeral expenses, and pays for your vehicle alteration.
What should you consider before taking the personal accident cover?
• Assess the coverage of the policy to ensure that you are extensively protected after the accident – both for medical expenses and loss of income and/or increased expenses.
• Track the record of claim settlement of the insurance company to know about its quality and reliability.
• Apply for the policy that offers coverage abroad so that you are secured even outside your home country.
• Learn about the claim procedure so that it’s quick and hassle-free at times of emergency.
Amid physical trauma and increasing medical expenses after an accident, a personal accident insurance policy provides peace of mind. We at New Age Insurance Brokers can work with you and your families to provide the right kind of cover.
Partnership insurance is a well-designed insurance plan for businesses that are run by two or more partners.
In the UAE, numerous businesses are set up as partnerships. However, rarely do the partners realize the implications of what would happen to the business and the family members if one of the partners gets severely ill or dies. Would the business suffer a loss either through reduced revenues or monies stuck in the market? Would the deceased partner’s shares get passed on to their next-of-kin who may not be interested in running the business at all or might not have business acumen and technical skills to support the business like the previous partner?
Fortunately, policies like partnership insurance allow for partners to be ready for this eventuality. This type of insurance also safeguards the business in the scenario where one of the partners survives the accident or illness but chooses to leave the company.
Is it necessary to buy partnership insurance?
Understandably, no one wants to think about tragic events while running a business with a partner. But, not planning for it properly might result in undesired outcomes after an unfortunate event in the future. Not being prepared for such events means your business can fall apart quickly once your partner gets out of the business due to any of the following reasons.
In case of the death of one of the partners, a partnership insurance plan will give the business a cash payout. It will allow the remaining partners to buy the shares back from the family of the deceased partner to regain full control and business continuity. This is beneficial for the deceased partner’s family as well as they are able to liquidate their holdings in the business and live a dignified life in the absence of their family member.
In addition, this lumpsum payout enables the remaining partners to find a suitable replacement (partner or an employee) and bring him/her on board without worrying about hefty salaries as the business will have the luxury of cash sitting in the bank account.
The cash flow resulting from the death of a partner, into the business, also gives confidence to the vendors, clients, and other business partners that the business will be able to tide over difficult times and come out stronger on the other side.
If one of the partners falls critically ill, then a cash payout is made to the company. This helps the business in many ways. Firstly, it enables to critically ill partner to get medical attention and be able to take the time off without a significant impact on his personal finances. In addition, if the partner needs to take a medical leave of absence or is working with the company at reduced capacity, it enables the business to hire the necessary people for the business operations to go on as smoothly as possible.
In short, a partnership insurance policy is a guarantee that your business would be least impacted by the death or illness of a partner and that the business can carry on its operations profitably.
At New Age Insurance Brokers LLC, you will find the most trusted insurance advisors who will help you to make sure that your business remains protected should any partner of your business get out of the equation. To know more about partnership insurance, feel free to contact us at firstname.lastname@example.org.
High-value life insurance is a secure and unique insurance plan especially designed for high net worth individuals like yourself who are business partners, directors, and large business owners, having large illiquid assets such as large real estate investments, machinery, accounts receivables, etc. This type of life insurance plan provides massive amounts of coverage from USD 1 million up to USD 200 million. It provides the opportunity for you to develop a very large asset base and offers guaranteed minimum accumulation benefit protecting you from market fluctuations. In a nutshell, life Insurance for HNWIs/UHNWIs is recommended so that they / their families/businesses continue to run at the same level of comfort and guarantees that they are used to.
Why should high net worth individuals buy high value life insurance policy?
As an HNWI/UHNWI individual, your needs are unique and hence only bespoke solutions are appropriate for you. These high-value insurance plans can be designed to meet your individual needs. Some of the reasons why one should consider a high-value life insurance policy are as follows:
High-value life insurance can help your business when insurance is taken on all the partners or keyman and the company pays for it. In the event of a claim, claim proceeds come to the business and can be used by the surviving partner to pay to the deceased partner’s successors towards buy out of his share in the business. In this way, there is no cash stress on the business to pay off the deceased partner’s family and continue running the business. In a sole proprietorship business, the family gets liquidity in the business and is not having to rush to sell the assets to pay running expenses or short-term/long-term liabilities. The cash payout helps the business to remain stable and gives time to the family to consolidate the business and carry on profitably.
Structuring Tax and Other Liabilities
It is vital for you to make sure that your estate has the liquidity to pay debts and estate taxes. In case the estate is expected to exceed the exemption amounts, planning for tax liabilities becomes important because paying off federal tax can be cumbersome and is typically due within the year of the estate holder’s death date. High-value life insurance can play a vital role in paying off estate taxes.
Legacy and Estate Planning
Estate planning is not only about estate tax avoidance/reduction, but it is also about taking care of family, dependents, and dealing with complications of transferring business, real estate, privacy protection, creditor protection, probate cost avoidance, and so on. A high-Value policy helps you fairly divide your assets amongst your successors. For example, if one of the children is not interested in joining the business, then life insurance proceeds can go to him/her and another child gets full control of the business. Legacy planning involves a lot more than estate planning. Rather than planning for “when I am dead”, it involves developing plans for things you value, the beliefs you have, the people you love, and passing all these to successive generations. A high-value life insurance can help you realize these plans in a much better way by providing the financial security you need. Apart from this, keyman protection, wealth preservation, and charitable giving are also other key objectives of buying jumbo life insurance. To conclude…
The very definition of rich implies that one is wealthy and has a great deal of money or assets. And that is typically the reason why a high net worth individual, like yourself, might undermine the importance and need for life insurance. You may assume that you already have enough wealth to protect your business and family, in case of your sudden demise or a slowdown of business due to a critical illness that you may suffer from. However, as experience has shown us and hopefully, we have been able to convince you, that is not always the case. A jumbo life insurance policy plays a very important role in estate planning as well as providing immediate liquidity to your family and/or business in case of your death or if you are diagnosed with a critical illness. Our wealth of experience in this domain will ensure that you, your assets, and aspirations are well protected and transferred onto future generations or executed as you wished it to be. To learn more about high-value life insurance, please contact us at email@example.com
What do you do when you are on a vacation and an unavoidable medical emergency happens? You will probably contact your relatives and friends for help or will visit the local medical authorities for treatment. How do you take care of the related expense? Your medical insurance does not cover you outside your country of residence. A very inexpensive travel insurance can help you deal with these and other unfortunate events that might happen while you are on a vacation.
It is this type of insurance that will help manage many uncertainties associated with travel. The insurance will cover the emergency medical costs in case of an accident, assist if your traveling document if lost, manage costs related to canceled and missed flights and many more. Overall, travel insurance will be a protective layer for your journey.
The benefits are several but there are some myths in the minds of the people that prevents them from using the same. Let’s discuss these myths and bust them.
Medical insurance or other life insurance is enough
Medical insurance will look after all your medical issues only if it covers the countries you are traveling to. Typically, medical insurances are not sufficient. Not only that, what about other problems that you may face in the journey. Travel insurance will cover a lot more than medical issues.
You have to take an individual policy for everyone in the family if traveling together
If you are traveling with your family, you can choose a family policy that covers all family members which includes family children below age 16. In addition, if you travel regularly with your family, you can choose an annual policy and use it whenever you plan your vacation. However, a ‘family’ policy can be invalid if family members are travelling independently or if the children are travelling with someone not named on the policy.
Can buy insurance later
People wait for the last minute to take the policy or after they have travelled because they are afraid of the premium amount. The premium amounts don’t change whether you purchase in advance or last minute. Also, the difference in premium amounts before you have travelled and after you have started your journey is minor and not worth the risk. We highly recommend taking the policy at the time of booking your trip.
Travel insurance is just for adventurous people
Some people love adventure and high-risk sports and activities during their travels. But it does not mean that they are the only ones should avail travel insurance. The terms and conditions are different for different travelers so even if you are not into adventure sports, you can apply for travel insurance. Such a policy will cover you against various travel risks such as lost or stollen luggage, cancellation cover (should you not be able to travel due to unexpected medical reasons) and most importantly, unexpected medical costs abroad.
Filing for a claim is difficult
While you are away from your home and need to file a claim under your travel insurance policy, people often think that it is difficult to contact the insurance company. They also have the mind-set that the response will be delayed. However, if you have bought a travel insurance from a highly rated insurance company, you will not have trouble reaching the insurance company or filing a claim with them.
So now that we have busted some myths around travel insurance, make sure that you carry it along with you in your next adventure. You can also reach out to us at firstname.lastname@example.org to learn more.
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 email@example.com to learn more.