Mortgages are one of our biggest financial commitments in life. This is doubly true for property investors, who might have built a whole portfolio through finance. But have you ever considered what might happen, if the worst happened?
In the event of your passing or a critical illness, you could inadvertently leave your loved ones with a large amount of debt if you don’t plan ahead. Repayments on mortgages will still have to be kept up, or you could end up losing your property – including the family home.
To erase such a risk, we always recommend securing Life and/or Critical Illness Cover (CIC) when taking out a mortgage. The costs are reasonable, especially when you put them in perspective. Insurance premiums for the UAE, in particular, stack up well against the things you may be paying for every day….
Why life cover is worth the investment
For a small premium each month, you can ensure that your loved ones have enough money to maintain their lifestyle and keep up any expenses, such as mortgage repayments, in the event of your death.
Getting a mortgage, or remortgaging, is a good time to take out Life Cover. You’ll be assessed for the state of your health; age, habits, diet and income/expenditure are all taken into account. This allows you to secure an accurate quote for the type of policy you want and level of cover you need.
Critical Illness Cover can be added to a Life Insurance package. But it can also be agreed separately, kicking in when a specified condition is diagnosed after the policy term begins.
Putting it in the context of your outgoings
Some people assume life cover to be an expense they can’t afford. Yet when we measure the price alongside other, typical payments – the kind a UAE resident is used to – then a different story emerges…
These are average costs to look at for comparison:
- 50 AED for a basic monthly Life Cover plan
- 150 AED for a good bottle of wine
- 50 AED for basic monthly utility costs, in an 85m2 apartment
- 244 AED for a pair of real denim jeans
- 432 AED for a two-person meal
- 150 AED for a bouquet of flowers
Now the true value of Life Cover becomes apparent. Annually, a lower-cost scheme will rest under 1,000 AED, which will be vastly exceeded with the luxuries we’ve talked about here. The question is, can you afford not to invest in your family’s financial freedom?
Expat Life Quotes will point you towards the best solution. Request a free quote today by calling +44(0)161 871 1216, and see for yourself how the cost of Life Protection levels up against everyday luxuries.
