Building a life in another country is a thrilling experience, and one that can truly level up your career and quality of life – especially if your relocation destination is the UAE!
However, moving abroad does come with its fair share of risks, and investing in the right kind of insurance can act as the ultimate safety net for you, your family, your assets, and your business alike.
Here’s all you need to know about the kind of insurance coverage to invest in when emigrating to the UAE.
Private health coverage is one of the essential types of insurance everybody needs, and it is also a legal requirement for expats moving to the UAE.
While the United Arab Emirates offers free public health insurance for Emiratis and citizens, expats are responsible for finding, affording, and renewing their own health insurance in accordance with the requirements of the Emirate they reside in.
In Abu Dhabi and Dubai, employers are required by law to provide coverage for their employees and their families. However, if you are self-employed or residing in other Emirates, you’ll need to ensure that your chosen medical insurance provides basic benefits, including emergency care and outpatient and inpatient care.
Property and Home Contents Insurance
There is more than one reason to invest in real estate in the UAE. In particular, if you are looking to invest in Dubai properties, you’ll be able to benefit from the city’s ambitious growth plan, an easier pathway to residency, a well-regulated industry, and rental yield as high as 5-6% of the property’s value.
But while buying a real estate property might be a great way to expand and diversify your portfolio, it is important to weigh the risks and protect your assets against damage and theft with comprehensive property and home contents coverage.
Car Insurance (Third Party or Higher)
No matter whether you wish to experience the thrill of driving a supercar, need a vehicle for commuting or enjoy off-road driving, car insurance is mandatory in the UAE.
All Emirates require drivers to have at least third-party liability coverage – or the type of insurance that will cover the damage inflicted to other people and properties during an accident.
However, most expats opt for comprehensive insurance, which will cover all damages reported by everyone involved in an accident, as well as agency coverage, off-road driving, road assistance, and emergency services.
While the insurance industry in the UAE is among the fastest-growing and most efficient worldwide, not all sectors are equally developed. In particular, the penetration rate of life insurance remains low, and, although the sector is growing at a CAGR of 3.8%, only a small percentage of residents of the UAE invest in this kind of insurance.
Nonetheless, term and whole life insurance policies can financially protect you and your whole family from the losses deriving from death, disability, and critical illness. In turn, life insurance is vital for those expats who have at least one financially dependent family member.
Pro tip: a common misconception surrounding life insurance policies is that they are expensive. However, the premium can vary significantly according to your lifestyle choices and medical history, and, thanks to upgrades introduced in 2017, you won’t be required to pay VAT on your life insurance policy,
Insurance For Businesses in the UAE
Thanks to the country’s developments, ambitious growth plan, low taxation, and favorable economic environment, the UAE has secured a position among the best countries to start a business – especially now that foreign investors can maintain full ownership of their company.
However, if you are looking to run a company in the UAE, you’ll need specific commercial insurance policies, including liability, property, employee benefits, and financial insurance.
Even if you are planning to relocate permanently to the UAE, the chances are that you’ll need to travel often. Depending on your specific circumstances, travel insurance can protect you against the damages and financial losses you might report while traveling, which are not usually covered by your standard insurance.
While the policies above are must-haves for all expats, every person’s situation is unique. Working with an experienced insurance advisor, comparing plans and quotes online, and investing in add-ons can help you feel protected in all aspects of your life in the UAE.
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