Death, sickness and disability insurance coverage for workers

Neeraj Gupta, CEO, Policybazaar UAE
Image Credit: Provided

The UAE is a great hub of opportunities for hard-working expats. While more than half, i.e. 52% of the UAE’s workforce of around 2.2 million are blue-collar workers (occupying jobs in construction services, transport sector, healthcare workers, manufacturing or as security guards etc.), the region can never forget the role these workers have played in its development. Therefore, paying attention to a financial or insurance plan that is affordable for them regularly attracts attention. By taking care of them, their families in the country of origin will thus contribute to the happiness of the country, which will make it one of the most developed countries in the world.

Previously, blue collar workers witnessed more instability to protect their families as their budgets were tight every month. The average salary scale for a blue collar worker is 2,500 AED or 675 USD per month. It was difficult for them to justify paying insurance premiums or making investments, as these workers send up to 70% of their salary home each month. They were the most vulnerable section as they received low wages after working hard for long hours. But, now that a term life insurance plan costs even less than a meal, these workers can enjoy the benefit of securing their future against uncertainties such as death, illness and disability.

The sum insured by the term insurance policy can provide a financial safety net to replace lost income, in the event the worker dies prematurely due to serious illness or becomes disabled due to an unfortunate event. The term insurance policy can provide a lump sum payment to their family (nominee) to pay off debts, rent the house, children’s school fees, care for elderly parents and continue with other monthly obligations.

One of the first things for blue collar workers to consider is their age and health when purchasing a term plan. It is always suggested to buy a term plan early / when young as the premiums are very affordable. Another thing to consider is the current income. Typically, term insurance coverage should be at least 5 times annual income. This would help their families support themselves financially despite future inflation in the event of the worker’s death or disability.

In addition, the blue collar worker must take debts into account when determining the amount of the sum insured required. However, it is impossible to calculate the amount of debt that one may have at the time of death. But, it is recommended to have sufficient financial support through term insurance coverage so that there is no burden on the surviving family members of the worker.

There will never be a better time than the present to explore the option of term insurance coverage. An experienced insurance professional can guide workers in purchasing term insurance plans with the right supplements without breaking their budget. Moreover, taking these important facts into account and the advice of the expert can help the worker to make the right decision. It would also ensure their financial security by providing an adequate sum to dependents in the event of the worker ‘s death, illness or disability.

About Antoine L. Cassell

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