UAE: 80% of residents say serious illness can deplete their entire savings

Almost eight out of 10 UAE residents are extremely worried that becoming seriously ill would deplete their savings, according to a survey released by Zurich International Life and YouGov on Tuesday.

The ‘Critical Illness Survey Report’ gathered responses of 502 employed UAE residents aged between 24 and 45 years and without dependents on how they would cope financially should they be diagnosed with a serious illness.

More than half – 55 per cent – of the respondents believe they could only manage up to three months financially if faced with a loss of income due to a serious illness.

According to the research, more than six in 10 respondents were extremely worried about falling victim to a serious illness in the future.

“The process of diagnosis, treatment and recovery from a critical illness could take a long time. A serious illness like cancer or heart attack may result in a prolonged treatment and recovery period. During this time, one may be unable to work which may result in a reduction or loss of income,” said Dr Khatchik Kinoyan, chief underwriter at Zurich International Life.

The survey findings also identified that only four out of 10 expect to be able to keep their current job or continue to run their business in case of a lengthy treatment or recovery phase with more than half requiring a family member to fly to the UAE to care for them while they recover.

“We are conscious that these are difficult situations with implications on physical and emotional but also financial health. Critical illness protection can provide a layer of financial security in scenarios where the majority of medical insurance provided by employers will often only cover treatment costs,” Dr Khatchik added.

Critical illness protection pays out the insured sum to replace income and provide financial security during a prolonged treatment and recovery period if diagnosed with a severe illness. The money can also cover ancillary costs associated with the illness (such as flying in a family member) and lifestyle changes that employers or personal medical insurance do not cover.

waheedabbas@khaleejtimes.com

• Dubai
• Abu Dhabi