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Life, Travel & Other Insurance - The Expat's Financial Safety Net (50+ FAQs)

Last updated on : 24 Nov 2025
10 min read

Life Insurance

  1. What is life insurance?

    A contract that pays a tax-free cash lump sum (the 'sum assured') to your chosen beneficiaries if you pass away during the term of the policy.

  2. Why is life insurance so important for expats in the UAE?

    It provides a vital financial safety net for your family back home. It can clear debts in the UAE (mortgage, car loan), cover children's education costs, replace your lost income for your family, and pay for repatriation expenses.

  3. What is the difference between Term Life Insurance and Whole of Life Insurance?

    • Term Life: Provides coverage for a fixed period (e.g., 10, 20, 30 years). It's pure protection and more affordable. It only pays out if you die during the term.
    • Whole of Life: Covers you for your entire life. It's more expensive as a payout is guaranteed. It often has an investment/savings component.

  4. Which type is more common for expats?

    Term life insurance is far more common and suitable for most expats, as their need for coverage is often tied to a specific period (e.g., until their children are financially independent or their mortgage is paid off).

  5. How much life insurance cover do I need?

    A common rule of thumb is 10-15 times your annual salary. However, a better way is to calculate your family's actual needs: outstanding debts + future living expenses + future education costs.

  6. Who is a 'beneficiary'?

    The person(s), trust, or entity you name in your policy to receive the payout. You can name your spouse, children, or parents.

  7. Can I have multiple beneficiaries?

    Yes, you can split the payout by percentage among several beneficiaries.

  8. Does my employer's life insurance cover enough?

    Usually not. Employer-provided 'death-in-service' benefits are typically low (e.g., 1-2 times annual salary) and end the moment you leave the company. A personal policy provides robust and portable protection.

  9. What is 'underwriting'?

    The process the insurer uses to assess your risk. They will ask questions about your health, lifestyle (e.g., smoking), occupation, and family medical history to determine your premium.

  10. Will I need a medical exam?

    For higher amounts of cover or if you have pre-existing conditions, the insurer may require a medical exam, including blood tests and a nurse visit, which they will arrange and pay for.

  11. What happens if I don't disclose a health condition?

    This is very risky. Non-disclosure can lead to your policy being voided and any future claim being rejected. Always be completely honest on your application.

  12. Can I get life insurance if I am a smoker?

    Yes, but your premium will be significantly higher than for a non-smoker, reflecting the higher health risk.

  13. What if I stop smoking after getting the policy?

    After a certain period (usually 12 months) of being a non-smoker, you can ask your insurer to reassess your premium.

  14. Does life insurance cover death by any cause?

    It covers death by almost any cause, including illness and accident. The main exclusion is typically suicide within the first 1-2 years of the policy.

  15. How do my beneficiaries make a claim?

    They would contact the insurance company with the policy number and provide the required documents, which typically include an official death certificate and proof of identity.

Critical Illness Insurance

  1. What is critical illness insurance?

    A policy that pays a tax-free lump sum if you are diagnosed with a specific, life-threatening illness listed in the policy.

  2. How is this different from health insurance?

    Health insurance pays your medical treatment bills directly to the hospital. Critical illness cover pays the cash lump sum directly to you.

  3. What can I use the critical illness payout for?

    Anything you want. It's designed to ease financial pressure, so you can use it to:
    • Cover daily living expenses if you can't work.
    • Pay for medical treatments not covered by your health insurance.
    • Seek specialist treatment abroad.
    • Make modifications to your home.
    • Pay off debts.

  4. What illnesses are typically covered?

    The 'big three' are cancer, heart attack, and stroke. Comprehensive plans cover 30+ conditions, including major organ transplant, kidney failure, multiple sclerosis, and Parkinson's disease.

  5. Is there a 'survival period'?

    Yes. Most policies require you to survive for a short period (e.g., 14-30 days) after diagnosis for the claim to be paid.

  6. Can I buy critical illness cover as a standalone policy?

    Yes, or you can add it as a 'rider' (an add-on) to a life insurance policy, which is often more cost-effective.

  7. Does the severity of the illness matter?

    Yes. Policies have specific definitions for each illness. For example, a claim for cancer may require the cancer to have reached a certain stage of severity. Some policies offer partial payments for less severe conditions.

  8. How does this help an expat in the UAE?

    It can be a financial lifeline. If you're diagnosed with a serious illness, it gives you the financial freedom to choose the best course of action, whether that's treatment in the UAE or returning to your home country without financial worry.

Travel Insurance

  1. Why do I need travel insurance, even for a short trip?

    Because things can go wrong. Medical emergencies abroad can be incredibly expensive. It also covers a host of other travel mishaps.

  2. My credit card offers free travel insurance. Is that enough?

    Often, no. Free credit card insurance usually has very low coverage limits, high deductibles, and may not cover trip cancellation or baggage loss. A dedicated policy is far more robust.

  3. What is the most important benefit of a travel policy?

    Emergency medical and evacuation cover. This pays for your hospital bills in another country and, if necessary, the cost of medically transporting you back to the UAE or your home country.

  4. What does 'Trip Cancellation' cover?

    It reimburses you for pre-paid, non-refundable travel costs (flights, hotels) if you have to cancel your trip for a covered reason, such as your own illness, a family emergency, or your travel provider going bankrupt.

  5. What about 'Trip Curtailment'?

    This covers your costs if you have to cut your trip short and return home early due to a covered reason.

  6. What does baggage cover include

    It provides compensation if your checked-in luggage is lost, stolen, or damaged by the airline. It also provides a small benefit for delays, allowing you to buy essential items.

  7. What is 'single trip' vs. 'annual multi-trip' insurance?

    • Single Trip: Covers one specific trip for a set number of days.
    • Annual Multi-Trip: Covers all your trips within a 12-month period (as long as each individual trip doesn't exceed a certain duration, e.g., 90 days). It's more convenient and cost-effective if you travel more than twice a year.

  8. Are pre-existing medical conditions covered?

    Not automatically. You must declare them to the insurer. Some insurers will exclude them, while others may cover them for an additional premium. Travelling with an undeclared condition can void your medical cover.

     

  9. Does travel insurance cover adventure sports like skiing or scuba diving?

    Standard policies often exclude 'hazardous activities.' You usually need to purchase an 'adventure sports' add-on for activities like these to be covered.

     

  10. What should I do if I have a medical emergency abroad?

    Contact the 24/7 emergency assistance number provided in your policy documents immediately. They will guide you, liaise with the local hospital, and arrange for payment.

  11. Does my UAE health plan's international cover replace travel insurance?

    No. Your health plan may cover some overseas medical costs, but it will not include any of the crucial travel-specific benefits like trip cancellation, baggage loss, personal liability, or medical evacuation.

  12. Do I need travel insurance for a visa application (e.g., Schengen visa)?

    Yes. Many countries and regions, including the Schengen Area, require you to show proof of a valid travel insurance policy with a minimum level of medical coverage as part of the visa application process.

Other Niche & Business Insurance

  1. What is Personal Accident (PA) Insurance?

    A standalone policy that provides a lump sum payment in case of accidental death, permanent total disability, or partial disability (e.g., loss of a limb). It's different from life insurance as it only covers accidents.

  2. What is Income Protection Insurance?

    A policy that pays you a regular monthly income if you are unable to work due to illness or injury. It replaces a portion of your salary until you can return to work.

  3. What is Professional Indemnity (PI) Insurance?

    Crucial for consultants, architects, lawyers, and other professionals who provide advice or services. It covers you if a client sues you for financial loss resulting from your alleged negligence or a mistake in your work.

  4. What is Public Liability Insurance for businesses?

    This covers a business if a member of the public is injured, or their property is damaged, on the business premises or as a result of the business's activities.

  5. What is a 'key man' insurance policy?

    A policy taken out by a business on a crucial employee ('key man'). If that person passes away or becomes critically ill, the policy pays out to the business to cover financial losses and recruitment costs.

  6. Is there insurance for my expensive gadgets?

    Yes. This is often part of the 'Personal Belongings' add-on to a home insurance policy, or you can buy standalone gadget insurance.

  7. Can I insure my pet?

    Yes, pet insurance is available in the UAE. It works like health insurance for your cat or dog, covering vet bills for accidents and illnesses.

  8. What is Golfers' Insurance?

    A specialized policy that covers theft of clubs, personal liability (if you hit someone with a ball), and even a celebratory bar tab if you hit a hole-in-one.

  9. What is 'Warkany'?

    This is the UAE's Involuntary Loss of Employment (ILOE) insurance scheme, which is mandatory for most public and private sector employees. It provides a small monthly cash compensation for up to 3 months if you lose your job. It is not a replacement for personal savings or other insurance.

  10. What is 'cyber insurance' for individuals?

    An emerging type of insurance that can cover losses from online fraud, identity theft, and the costs of restoring your data after a cyberattack.

     

General Questions & Policy Management

  1. Can I have a life insurance policy from my home country and one from the UAE?

    Yes, you can have multiple policies. The payouts are independent of each other.

  2. Is the payout from life or critical illness insurance taxable in the UAE?

    No. There is no income tax in the UAE, so any payout you or your beneficiaries receive is tax-free.

  3. How do I choose the right insurance company?

    Look for a company with a strong financial rating (e.g., from S&P or Moody's), a good reputation for paying claims, and excellent customer service. Comparing options on Shory helps you see quotes from reputable providers.

  4. What is the 'free-look' or 'cooling-off' period?

    For long-term policies like life insurance, you typically have a period (e.g., 30 days) after receiving the policy documents to review them. If you're not satisfied, you can cancel for a full refund.

  5. Can I cancel a term life insurance policy?

    Yes, you can stop paying the premiums at any time. The cover will cease, and there is no refund or cash value.

  6. Why is using a platform like Shory beneficial for these types of insurance?

    For complex products like life and critical illness insurance, clarity is key. Shory helps demystify the options, compares features from leading brands, and connects you with qualified advisors who can ensure you get the right cover for your specific needs, making a complex decision much simpler.
Disclaimer: Shory aims to present accurate and up to date information, however we take no responsibility or liability for any errors or omissions in the content.

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