April, Thursday 25, 2019
For many reasons, life insurance is a necessity often neglected by most UAE residents. The first reason being that unlike health insurance and car insurance, acquiring life insurance isn’t mandatory. Since it is the sole decision of an individual whether to go for it or not, people tend to ignore it, until some events occur and they realize they should have gone for it.
The second cause of negligence towards life insurance is misconceptions and myths caused by misinformation and lack of research.
In this post, we will be looking at some of these myths with the aim to give you the accurate information that will allow you to make an informed decision regarding this subject matter.
Let’s look at some of these myths:
You Don’t Need Life Insurance Until You Turn 35 Or Married
This is perhaps the most common misconception about acquiring life insurance. In one of our recent posts, we tried to look at two of the best methods of acquiring life insurance. In that post, we discussed the issue of age with regards to buying life insurance and why it is important to go for it why one is still young. Click here to read the full post.
That said, it is important to reiterate that being young offers you a big advantage when buying life insurance. Firstly, at a young age, you stand a good chance of getting a life insurance package that will offer you better coverage at an inexpensive premium.
This is because, firstly, the chances of you having any kind of health conditions that will drive your premium up is very low. Practically, the older you get, the higher the chances of developing health issues and the higher your insurance premium. So if you are young and employed, it is advisable to go for an insurance package that is suitable for you.
Secondly, it is advisable to buy insurance before you need it and not when you need it. Life is full of uncertainty and you never know when unforeseen events will come knocking on your door. Acquiring life insurance helps you and your loved ones to be prepared for any unforeseen events.
Life Insurance Is for the Wealthy and High-income Earners
This another common life insurance myth in the UAE. A lot of employees believe that life insurance is for the wealthy and high-income earners. There are also another group of people that believe that life insurance is determined by how much one earns.
The simple truth is that everyone needs life insurance, as long as you have assets to protect and a family to cater for. The purpose of life insurance is to provide for you or your loved ones or take care of certain liabilities in the event of any mishappening.
So life insurance isn’t based on your earning powers, it is based on an individual’s priorities such as debt and other liabilities, number of dependents, the value of assets to be protected, and other personal factors.
It Is Expensive to Buy Life Insurance
This is one of the most common assumptions that stop people from acquiring life insurance, and it is false and misleading. Buying life insurance is not expensive, especially when you consider the peace of mind and coverage that it provides for you and your loved ones.
In addition, people tend to overestimate the cost of acquiring life insurance. The ideal thing to do is to contact an insurance broker to help you with the assessment and estimation.
A lot of factors are considered when choosing a life insurance package for any individual. Some of these factors include age, health, the value of the assets to be covered, number of dependents, and other personal factors.
Generally, life insurance is estimated to suit each individual’s needs and the cost of premium varies from person to person.
As you can see, most of the negative information you receive about acquiring life insurance is false. Life insurance is a necessity and you should endeavour to acquire it for your sake and that of your loved ones.
If you have more questions about life insurance, give us a call or fill our contact form and one of our top agents will be in touch with you.