Why 51% of UAE residents don’t own life insurance

36%

Of residents find life insurance too costly

dubai — Nearly half of UAE residents do not have life insurance coverage while one-fourth are covered against serious illnesses as many of them found it too expensive, reveals a new survey.

According to a Friends Provident International (FPI) survey conducted by YouGov, of the 51 per cent of respondents who said they did not have life cover, 36 per cent said it was too expensive while 30 per cent of respondents were not familiar with the concept of life insurance. Another 39 per cent said they were not familiar with critical illness insurance.

The survey also showed that overall just 24 per cent have cover against serious illness. Of the male respondents 28 per cent claimed to have critical illness insurance — up from 25 per cent in 2017 — and only 19 per cent of females , down from 24 per cent last year, said they had this cover.

Chris Divito, managing director for the Middle East and Africa at FPI, said there is a worrying lack of understanding around life and critical illness insurance and therefore people are likely to base their decisions on factors such as brand reputation of the insurer and price. “While it is important to consider these aspects, a financial adviser is best placed to review a range of plans from different providers, and to help people choose a plan that is appropriate for their individual circumstances; and not just based on price and brand.”

The survey polled more than 1,000 respondents.

The survey results showed that brand reputation and price have the greatest influence on people’s decision to buy insurance.

“Common misconception is that life insurance is expensive... what people don’t realise is that there are various options that work for every budget and financial situation.”