Financial Planning 101: Protection Planning

Despite the presence and a growing number of both local and international life companies in the U.A.E., many Filipino expatriates in the country still seem to not understand the pivotal importance that these insurance institutions play a part in today’s society, therefore leaving them uninformed of the many financial benefits that these institutions have to offer.


But hang on! Why do you need to pay attention to this anyway?


A huge fraction of OFW’s in the U.A.E. live a sedentary lifestyle. Most residential buildings here do not have fitness gyms and enrolling at a fitness club, depending on the quality and location, could potentially cost you somewhere in the region of AED 3,500 – AED 5,000 per year. Fitness First clubs nationwide, Tribe Fit in Dubai Marina, UFC Gym in JBR are amongst a few of them. And whilst going out for a jog could have been a great alternative, due to the unbearable heat throughout over half of the calendar year, jogging outdoors even in the late evenings becomes physically impossible.


With such a wide variety of fast food chains around, cafés, juice bars, take aways and deliveries to choose from, we tend to pay lesser and lesser attention to the pivotal importance of living a healthy lifestyle. The harm that is caused by consuming food from these establishments don’t pose imminent health threats however, one way or another, they will eventually take their toll. And when things hit the fan, it raises nothing but the usual question – ARE WE PREPARED FOR IT?


Jojo Dass of The Filipino Times, on 07 July 2018 published an article about how over 1,000 out of 700,000+ Filipinos in the U.A.E. are diagnosed with cancer every year. That’s just cancer alone. Imagine, the number of other Filipino expatriates who are diagnosed with other life-threatening diseases such as diabetes, heart-related diseases, etc. Imagine what the actual figure look like. Apart from the Filipino Times, Emirates 24/7 News also wrote an article talking about Filipinos and cancer whilst the Burj Khalifa was lit in pink in October 2016 to raise breast cancer awareness.


So with the aforementioned put into account, why is protection planning still constantly being thrown into the backseat?


If we can afford to sit at Starbucks or Costa coffee a number of times per week, or go to the cinema on a weekend, or dine out with friends, or buy a number of things that may not be an urgent necessity such as the latest gadgets and gizmos, or signature hand bags, Nike trainers, etc., why can’t we spare a part of our income and put it into something that has way more value than any of that I have just mentioned? It could be one of only 2 things – it’s either that we do not have the innate sense of urgency (which is human nature) or, perhaps because we have not been exposed to a variety of protection products available in the market that actually fit our needs.


There is a number of international insurance companies where you can get a comprehensive life insurance policy with options of taking additional riders such as critical illness cover, permanent and total disability, etc. for as low as AED 80 per month – of course premiums may be higher based on the individual’s personal circumstances, i.e. age, health condition, smoking status, etc.


Protection Planning for me is one of the 2 main pillars of a successful personal financial planning – the other one being Retirement Planning. Having both provisions in place will definitely put you into a strong financial position that even when financial storms come knocking down homes, your home won’t sway, these pillars will support you through it all.


The insurance industry provides a variety of products to meet many potential scenarios allowing risks to be managed more effectively.


Don’t let the bigger earthquakes of like shake you to the point where you are down on your knees. Pave yourself a more concrete ground to stand on and make it unshakeable. Look into a wide range of insurance products available in the market today. Find out what suits you best. Speak to a qualified financial professional and LEVERAGE YOUR PERSONAL RISKS to a Life Company.


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