58% of UAE residents do not have life insurance

Picture used for illustrative purposes alone

Dubai - Just over a fifth - 21 per cent - said they currently have critical illness insurance to protect themselves and their families should they fall seriously ill.

A new survey has revealed that an increasing number of UAE residents do not have life or critical illness insurance.
The Friends Provident International (FPI) survey - which was conducted by YouGov - found that 58 per cent of 503 respondents do not have life insurance, compared to 48 per cent in last year's survey.
Just over a fifth - 21 per cent - said they currently have critical illness insurance to protect themselves and their families should they fall seriously ill.
Females were found to be less likely to have life insurance, with only 37 per cent having cover in place, compared to 45 per cent of men.

Females are also less likely to be covered for critical illness, with only 18 per cent having this type of cover, as opposed to 23 per cent of males.
The main reason cited by respondents for not having life cover were that it is "too expensive" (32 per cent), with 26 per cent saying they were "not familiar with the concept of life insurance."
Of those without critical illness cover, 37 per cent said they were unfamiliar with the concept, and 28 per cent said it was too costly.
"It is quite disturbing that the number of respondents without life insurance cover has increased in the last year, and the number of respondents without critical illness cover is also a cause for concern.
"I appreciate that no one likes to consider their own mortality or to think about becoming seriously ill; however it is important to think about the potential impact on a family if the worst should happen," said Marcus Grant, FPI's Managing Director of the Middle East and Africa.
"Protection should form a cornerstone of any robust financial planning. Life and critical illness are important areas to consider and should never be overlooked."
Life insurance plans, such as term insurance, provide a payout in the event of death, terminal illness or if the insured suffers from one or more of a range serious illnesses (if critical illness cover is included) before the plan's expiry date.
Such plans can provide a much-needed lifeline for a family if the primary breadwinner should die or become ill, and can be used as protection for a mortgage or loan, or to protect a business in the event an important employee passes away.
"Life insurance and critical illness insurance are probably the only things you buy and hope you never have to use. But the cost implications of not having such insurance cover if the worst should happen is likely to far outweigh the amount of premium necessary to secure a reasonable level of cover," Grant added.
"I am concerned that so many respondents said they were not familiar with the concepts, and this is something that needs to be addressed. I would encourage anyone without life or critical illness insurance to speak with a financial adviser who will be able to explain the many benefits; help them to assess their situation and - if necessary - recommend a protection plan with a suitable level of cover."
Is mandatory health cover proven to be a failure in UAE?
In an interview with Khaleej Times, Grant noted that the UAE's mandatory health insurance regulation "does not affect figures for life or critical illness cover."
"While the new health insurance programme makes it mandatory for all employers to provide at least a basic medical coverage plan for their employees, life and critical illness cover goes beyond health insurance; it is about financial security and everything else that protects the future of individuals and their families, should they fall seriously ill or die," he added.
However, Grant said that he expects the number of people without life and critical illness cover will decrease, as people will have more money with which to get them.
"Although some individuals will need to provide health insurance for dependent family members and domestic helpers - such as nannies - it is the employer who will now bear the cost of employee health insurance schemes," he said.
"With this in mind, working individuals should be left with more funds available to protect themselves and their families."
DID YOU KNOW
503 residents took part in the latest YouGov survey
45% men have insurance cover in place as compared to 37% women
23% men have critical illness cover as compared to 18% women
37% respondents 'not familiar' with the concept of life insurance.
28% respondents find life insurance 'too costly' for them
21%  of residents now have critical illness insurance to protect themselves and families
Major findings of the survey

• Just over a fifth have critical illness insurance to protect themselves and their families should they fall seriously ill.
• Number of respondents without life insurance cover has increased in 2015 compared to previous year
• Females were found to be less likely to have life insurance
• Females are also less likely to be covered for critical illness
• UAE's mandatory health insurance regulation does not affect figures for life or critical illness cover