If you have children there is no question that they are the most valuable thing you can think of. So have you done all you can to protect them?
How would your family manage if you died and your income was lost? How would they manage without you to take care of them?
Would they be able to maintain their standard of living? Would your children’s education remain unaffected? Would any outstanding loans or debt be repaid?
Money does not replace a beloved husband or wife or a parent, but it’s even worse if those left behind are worrying about money and how they’ll manage. These are not subjects that we want to think about but the kindest action is to take the right steps to safeguard your family should the worst happen.
These are some of the issues you need to consider.
Life cover
If you have dependents or debts then you need life cover. Most plans pay out a lump sum on the death of a life assured allowing their family to receive an income and/or repay debts.
If you have existing policies I suggest that you check to ensure that the level of cover is appropriate, that if arranged in a home country they are still valid whilst resident in the UAE, and that they have been set up in the right way. Many people could benefit from plans being written into trust, a relatively simple procedure that ensures the proceeds are paid out quickly without any tax charges.
Wills
Too few people have set up wills and without these in place you have no say in what happens to your assets in the event of your death. Even more worryingly, should both parents die the state will decide who should bring up your children and you have no input. Whilst living in the UAE you may also need to factor in the effect of Sharia law.
I provide a will writing service, plus advice, so see this link for details. Where there’s a will there’s a way to protect your family
Other types of protection
It is now law in Dubai for all residents to have medical insurance in place. Abu Dhabi introduced this requirement several years ago and other emirates may follow suit in time. With 56% of people saying that maintaining good health is a major concern there are other steps you can take to protect not only your family but yourself too.
You will also find some useful points in this article: Is your family financially protected if you die? Six common errors
For expert and unbiased advice on how to protect your family, or on any other financial planning issue, please contact me at keren@holbornassets.com
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