The final quarter of every year sees the emergence of two important cancer awareness campaigns, ‘Pink October’ focuses on breast cancer, with ‘Movember’ focusing on testicular cancer. If some of the men in your office have started to grow some silly moustaches you now know it’s for a good cause!  For a free male screening see the end of this blog.

In light of Pink October and Movember and today’s changing lifestyles, we thought this was the perfect time to remind people of the importance of having life insurance and critical illness cover in place. The irony however is, many of us often see this type of cover as an ‘additional,’ rather than an essential part of financial planning.

So, why in Dubai, do so many people not have ‘insurance’ in place for themselves?  By insurance, I mean life insurance and critical illness. The answer is often; 1. I can’t afford it, 2. It won’t happen to me, or 3. I’ve not thought about it.

The reality is that insurance has the potential to be so much more in terms of financial planning. A life insurance and critical illness policy is meant to ease your family’s financial burden in case something unfortunate were to happen to the policyholder, that is you.

According to a report released by a leading international insurance company the average age for a life insurance claimant was just 50 years, the average age of a critical illness claimant was even lower at 48 years.  It’s also a startling fact that a third of all deaths in the UAE are caused by cardiovascular disease.

Here are the three ways life and critical illness insurance cover can not only be a vital component of one’s financial planning, but it can enhance your financial plan as well:

(1) Financial security against loan

Taking out insurance cover also brings in the benefit of managing risk against outstanding loans, if you have any.  An insurance policy with an amount of cover similar to your outstanding loan will minimize the risk of loan repayment default, if something were to happen to you.

Life and critical illness insurance thus help in protecting the financial security of those who matter most to you.  It bridges the financial gaps arising from unfortunate events such as death or critical illness.

(2) Achieving long term goals

Most of us have long-term financial goals such as buying a car, owning a home, education and marriage of your kids, and, last but not the least, your retirement planning.

Life and critical illness insurance help to moderate the risk of missed financial goals. Since this can help keep your investment intact for what it was intended for and it helps you to work towards a planned and secure financial future.

(3) Tax saving

If you are a British expat or even if you are not, but you hold assets in the UK such as a property, having life insurance cover can also act as a tax saving tool, for inheritance tax purposes.  It’s also worth keeping in mind that if you are a British expat living in the UAE with assets in the UAE or overseas, they will also be taken into account for inheritance tax purposes.  Having life insurance cover therefore becomes all the more important if individuals don’t want to sell their assets back home to cover this potential liability.

When it comes to the cost, cover often costs a lot less than you would expect. Two Starbucks coffee’s per week would set you back just under AED 40. This could provide up to $150,000* of critical illness/life cover.

The nice people at HealthBay are offering gents a free PSA (Prostate Specific Antigen) screening on Tuesday 19^th and Tuesday 26^th November. They also have other male checkup discounts available during November. Emirates Woman has guidance and advice for women about breast cancer.

As it is so important to find the right life insurance plan it’s highly recommended you speak to a qualified financial adviser from a regulated firm. To find a suitable adviser please check out the featured advisers on this website.

*Approx. cost is based on a British male nonsmoker aged 30 for cover over 20 years.