UAE residents need better awareness on life insurance and critical illness cover, says a research conducted by protection, savings and investments provider Friends Provident International (FPI).

The research paper has highlighted UAE residents’ need for better financial planning, with 42 per cent of respondents admitting that they haven’t planned for their family’s future should anything happen to prevent them earning an income.

The research supports FPI’s launch of its new International Protector Middle East plan with critical illness cover, aimed at increasing understanding of how developing a critical illness can impact a resident’s income and lifestyle if the proper cover isn’t in place to help provide financial peace of mind in these circumstances.

“Our research has shown that there is a clear need for better understanding of critical illness cover and how people can ensure they are financially secure if they were to develop a critical illness in the future,” said Matt Waterfield, general manager (Middle East) for FPI.

“We found that 71 per cent of respondents thought it was likely or very likely that they were at risk of developing a critical illness, yet 49 per cent of respondents didn’t have a life insurance policy that provides cover in the event of them doing so,” he added.

Waterfield pointed out that a comprehensive life insurance product with critical illness cover can help provide financial assistance if a person were to develop one of a range of medical conditions covered by the product.

According to the research, respondents in the UAE view their most valuable financial asset as their property (39 per cent) followed by their income (33 per cent).

“We’ve discovered that some people are aware of the risks critical illnesses pose – more than half (56 per cent) knew at least one person who had developed a critical illness – yet 42 per cent hadn’t planned for their family’s future if anything were to happen to prevent them earning an income, and had not considered the implications this may have on mortgage or other regular payments,” Waterfield continued.

“We want to make sure people understand the financial impact developing a critical illness could have, and encourage them to seek needs-based advice to allow them to make the right choices in order to protect their income and lifestyle should anything occur.”

The new FPI International Protector Middle East with critical illness cover has been tailored to suit national and expatriate communities, with the aim of ensuring that more people in the region receive the information they need to plan for their futures, he concluded. – TradeArabia News Service