ToePick

Has anyone purchased critical illness and disability insurance while living in the UAE? Are there companies there that offer this? If so, is it difficult to get?

If I were to stay in my home country, I could get excellent coverage but I am unable to get decent coverage while I am outside the country. I need to decide before I leave if I want the coverage they have offered me (which is pathetic) or take a chance and purchase it there... so I am hoping this group can help me out.

carcajou

There are companies geared towards expats that offer this, as well as things like term life insurance. I did not purchase but if I was in my 40s or 50s, I would.

What is your home country? It helps to know these things to analyse/make comparisons.

ToePick

Home country is Canada. I already have term life insurance that I'm pleased with.

carcajou

On your term life, make sure there is no fine print that says you must remain resident in Canada, or that if you are outside Canada for a year or more, the insurance invalidates.

You should be able to find companies targeting expats that suit your requirements. I have looked into it, but some years ago, but can't recall specifics too well. Try the same ones offering term life, I seem to remember they offered those products as well.

Good luck.

ToePick

Thank you!
I did purchase the life insurance policy specifically stating I will be outside Canada but I'll check the fine print to make certain I'm covered.
I will look for disability insurance when I arrive.

jam25mack

Friends Provident are advertising such products on the radio at the moment. Not sure of the specifics as I zone out when adverts come on. Dunno if its any good either. Worth a look though.

mission

what's 'term life insurance'?

carcajou

Term life insurance is life insurance, but only valid for a finite number of years (ie, the "term").

For instance - your standard life insurance policy in Australia is usually valid until you turn 70 or 99, and just automatically rolls over each year as long as you keep paying the premiums. That is not term life insurance.

Your standard life insurance policy is also only valid as long as you are resident in Australia - if you move to the Middle East for than a year, it gets cancelled, and they won't sell life insurance to anyone not resident in Australia.

Therefore, expats in the Middle East need another solution. So banks and insurance brokers sell life insurance that's only valid for 5 or 10 years, not until you turn 70 or 99. That is term life insurance.

You can also usually buy term life insurance in your home markets.

mission

thanks - so does this policy eventually 'mature' and hence you get some kind of lump sum at the end of the number of years the 'term' is for?

carcajou

It would depend on the policy - but generally no. It's usually just a short-term solution.

mission

so it's another form of health insurance?

carcajou

PS That kind of policy - called "Return of Premium" term life insurance - has been discontinued in many places, including Australia.

carcajou

No - if you have term life insurance (for, say, $500,000) and you die while the policy is in effect, whomever you designated as the beneficiary would get $500,000. They also usually advance a small amount (like $10K to $15K) immediately for funeral expenses.

You can vary coverage amounts and so on.

Some policies, if you are diagnosed with a terminal illness, will pay out in full before you die, if you are expected to pass within a year.

mission

ah i see, thanks.

Meow

I advise on and arrange such plans for clients, with a number of international providers, so please drop me a PM if you'd like independent advice (from a qualified and experienced professional).