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Life insurance penetration low among UAE residents

Almost two-thirds (64 per cent) of UAE residents do not have a life insurance policy that would protect their family’s financial future in the event of the death of the primary salary earner, according to a survey by Zurich International Life.

Families can suffer from severe economic loss if their primary salary earner dies. A life insurance policy provides a cash lump sum or regular income to replace the earnings that would cease at the death of the insured to pay regular bills, school and university fees, the mortgage and outstanding debts.

Additionally, the survey found that among residents with life insurance, about 66 per cent have cover that only equates to two or less years of their annual salary, which would be insufficient to cover the loss of income from the primary salary earner.