There has been a significant increase in the number of UAE residents who do not have protection in place in the form of life or critical illness insurance in the past year, according to a new survey.
The Friends Provident International (FPI) survey, conducted by YouGov on behalf of FPI, showed that 58 percent of the 503 respondents do not have life insurance in place, compared with 48 percent who said they did not have life or critical illness insurance in last year's survey.
Only a fifth (21 percent) of respondents currently has critical illness insurance in place to protect them and their families should they fall seriously ill, it said.
The research also showed that females are less likely to have life insurance, with just over one third (37 percent) having cover in place, compared with 45 percent of males.
Females are also less likely to have critical illness cover, with less than one in five (18 percent) having this type of cover as opposed to 23 percent of male respondents.
The main reasons cited by respondents for not having life cover in place were "too expensive" (32 percent) while just over a quarter (26 percent) said they were "not familiar with the concept of life insurance".
For those without critical illness cover, more than a third of respondents (37 percent) said they were "unfamiliar with the concept" and 28 percent said it was "too expensive".
Marcus Gent, managing director, Middle East and Africa at FPI said: "It is quite disturbing that the number of respondents without life insurance cover has increased in the last year, and the number of respondents without critical illness cover is also a cause for concern.
"I appreciate that no one likes to consider their own mortality or to think about becoming seriously ill; however it is important to think about the potential impact on a family if the worst should happen."
Life insurance plans, such as term insurance, provide a payout in the event of death, terminal illness or if the insured suffers from one or more of a range serious illnesses (if critical illness cover is included) before the plan's expiry date.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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