How to take out a life insurance policy in the UAE

Taking out life insurance could give you peace of mind that your family will be taken care of.

DUBAI // Taking out a life insurance policy should be a priority for anyone starting a family.
The type of insurance you choose to invest in depends on your objectives, existing assets and budget. There are several insurance brokers in the UAE who can tailor a plan based on your needs.
"A financial adviser can help by assessing the purpose of getting insured and then take stock of your present financial situation to develop a comprehensive plan within your means," said Kamalesh Somaia, sales manager at Nexus Insurance Brokers in Abu Dhabi.
A basic life insurance policy can be boosted with add-ons - known as " riders" - that also cover other circumstances, such as critical illness, disability and accidental death.
Nasrullah Japanwala, executive vice president of Al Nabooda Insurance Brokers in Dubai, said: "The accidental death clause is particularly beneficial if the person has a lot of loans and liabilities."
Depending on your age and medical conditions, the monthly premium of the plan may increase.
Mr Somaia said it is important that you ensure the plan does not become a burden on your current finances. "You must not overcommit yourself to the premium that needs to be paid for any policy," he said.
Ideally, the total premiums for all your policies should not exceed 35 per cent of your income.
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Established insurers in the UAE include Nexus (02-626 6669), Al Nabooda (04 312 1333) and Daman (02 614 9555)