A few clients have contacted me to ask about whether their protection plans, their life insurance policies, are still valid considering the current situation in the UAE, and wider GCC.
In this article I explain the situation and give you some facts. Reassuring facts.
The very short answer is yes, life insurance will continue unchanged, but I want to explain a little more.
Is my policy still valid?
Yes. Your policy is still valid and your current Terms and Conditions will continue to apply.
Will my premium increase because of the current situation in the Middle East?
No. Your premiums will remain the same.
Does the current Middle East situation affect any claims made under my policy?
No. There have been no changes to policy terms and conditions. Any current policy exclusions apply.
Should I continue to pay premiums?
Yes. Please continue paying premiums as you currently do. If you do not pay the premiums, your cover will stop and you will not be insured.
Can I apply for life insurance now if living in the UAE?
Yes. Applications are still being accepted, particularly for popular term insurance policies.
Unsurprisingly, I have seen an increase in enquires about life cover and wills, so just get in touch
Does my life cover remain in place if I am forced to leave my current country of residence, or if I am evacuated due to the current situation?
The policies I arrange are all for international cover so are transportable.
Provided your premiums are paid to date, cover will remain in place.
The only exception is if an exclusion has been applied to the policy for the particular country you are travelling or transiting through. This is unlikely to be the case.
Does the current Middle East situation affect any claims made under my policy?
No. There have been no changes to policy terms and conditions.
If you have any current policy exclusions (usually in relation to known medical conditions) these will continue to apply.
Am I covered if I am killed as an innocent bystander?
Yes. You will certainly be insured as an innocent bystander
The only time this might not apply is if a passive war exclusion was applied to the policy. This will be stated on the policy schedule.
A passive war exclusion may have been added if you travel to countries that are considered riskier, in most cases due to work commitments, but you would have been made aware of this before starting a policy. It is usually country specific.
Passive war is where death or injury is caused to an ‘innocent bystander’. If someone has a passive war exclusion on their policy this would have been made clear to them before the policy commenced and they would have had to sign to accept this. Wording on the offered terms of cover and their policy schedule would reflect this.
There is an active war exclusion built-in to most term plans, to most life insurance policies, but for this to be invoked a client would need to be physically taking part in the aggression/action.
Can I increase the level of my life insurance? Or my critical illness cover?
Yes. Just as for new applications, applications can be made if you want to increase cover.
NOTE: The comments and information here apply to residents of the UAE, and other GCC countries. They are specifically in relation policies that I have arranged for my clients but should apply to others with term insurance policies. Whole of Life policies that are already in force should continue in the same way but not all companies are accepting new applications for universal whole of life cover at this present time.
How do I contact you to arrange life insurance or other protection plans?
Click on this link to send me an email: keren@holbornassets.com or use this contact form.
Expert, qualified, professional advice on a range of issues including general financial planning, life and critical illness cover, investments and UK pensions, wills and inheritance tax planning, UK tax, offshore banking, citizenship programmes, currency transfers and more.
I write articles such as this one as part of the holistic personal financial planning service and that I provide to expats. Plus, the general consumer, financial and legal information that I provide in The National newspaper, other media, and on the Facebook group British Expats Dubai.
Serious topics with relaxed and friendly conversations.
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