Life Insurance in Saudi Arabia | Help

Although growth is expected to ease in Saudi Arabia’s competitive insurance sector this year
The industry still holds plenty of potential for expansion, particularly in the health and life segments. 

Despite having the largest population and economy in the region, the Kingdom’s insurance sector is characterised by underperformance and low penetration rates, especially in the non-property and automotive fields.

Overcrowding in the market and tight margins have combined to put the Kingdom’s 30 policy writers under pressure as they vie for business from a comparatively small base, prompting them to adopt tactics aimed at attracting clients away from rival companies, such as cutting policy contribution rates.

Fahd Al Anazi, a member of the Shura Council, the Kingdom’s consultative assembly, believes consolidation could be the solution for struggling insurers, enabling them to both strengthen their capital and increase customer numbers. 

“A number of insurance companies have had their capital diminish because they failed to get high enough returns to compensate for their losses,” Al Anazi told the Arab News in October. “There were 30 established companies investing $26.6m, and high establishment and operating costs have caused the erosion of their capital.” 

While the environment that Saudi’s insurers are operating in is challenging, a recently published report by ratings agency A M Best highlighted the opportunities for growth that the industry offers, both in the Kingdom and across the wider Middle East and North African (MENA) market. “The MENA insurance markets tend to be immature, with very low penetration rates compared to their international peers,” the report, issued in early October, said.

Life insurance is seen as the most under-developed segment, with the trend magnified in Saudi Arabia. Figures show that life insurance makes up about 6% of all premiums written in the Kingdom, well below both the 16% recorded in the UAE, which is the region’s largest single insurance market. 

The health segment is also expected to provide opportunities for local insurers on the back of a drive by the government to move away from state-dominated health care and encourage the development of private medical services. Demand for cover looks likely to rise in the direct health services segment, pharmaceuticals, and also among subsidiaries as private medical care operations expand. 

The Best study said Saudi Arabia’s stability, together with the insurance sector’s potential and the size of its economy, should see the Kingdom achieve a higher rate of growth than regional forecasts, which have estimated a below 5% rise in total gross premiums written (GPW) for MENA. 

The solid regulatory system that governs the insurance sector is also expected to support growth. While a reinforced oversight system introduced by the regulatory body, the Saudi Arabia Monetary Agency (SAMA), spelled added bureaucracy for firms when it was enacted in 2008, it was widely agreed the system played a key part in improving transparency and accountability across the industry. 

The regulatory system has also been instrumental in keeping the country safely distanced from markets that have found themselves in the spotlight over questionable practices, such as concerns about whether all Islamic insurance firms are meeting sharia compliance requirements. 

SAMA, which covers both the conventional and sharia-compliant segments of the insurance industry, earned praise from Moody’s ratings agency in a report published earlier this year. The agency noted that, “Insurance regulators in the region are increasingly embedding prudential insurance regulatory supervision philosophies into their monitoring of local insurance companies, particularly in Saudi Arabia and the UAE”. 

While regulation is expected to play a part in supporting growth, the marketplace remains a tough environment in which to do business. Industry players, particularly smaller outfits, may well find that survival depends on an ability to successfully expand their business activities and deepen penetration rates. The alternative looks increasingly likely to be a round of mergers that will consolidate the industry, lift capital standing and strengthen the position of a potentially smaller number of operators in the marketplace.

 

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Insurance law in Italy - 10 things to know | Help

1. A European jurisdiction 

Under EU Treaties, Italy recognises the possibility for EEA insurers and intermediaries to passport their licences and operate in Italy under the freedom of services or the freedom of establishment regimes, although subject to the supervision of the home-country authority.


Italian Insurance law is largely harmonised with other European jurisdictions as a consequence of the application and implementation of numerous EU Directives, in particular with regard to insurance mediation, financial products, auto insurance and, in relation to regulation and supervision, solvency margins, technical reserves and authorisation processes for insurance licences, portfolio transfers or the acquisition of an insurance business or entity. 

Certain rules and practices are, however, unique to the Italian market, particularly in respect of auto insurance, which represents a very large share of the total insurance business in Italy. 

2. Insurance contracts 

Material information must be fully and correctly disclosed to the insurer by the insured at the time of entering into or renewing an insurance contract. A policy is void in the event of intentional or grossly negligent misrepresentation or non-disclosure on the part of the insured that is likely to have materially affected the assessment of risk.

In relation to casualty policies, statutory provisions compel insurers to cover legal expenses relating to a covered claim, up to 25 percent in excess of the applicable limit.  

 3. Insurance intermediaries 

Italian intermediaries are classified into three main categories: 

• agents (acting on behalf of insurers) 
• brokers (acting on behalf of the insured) and 
• banks or financial institutions (acting under the direction of the insurer and having joint and several liability with the same). 

Each of these intermediaries may appoint sub-intermediaries. 

No exclusivity can be granted by a non-life insurer to an insurance intermediary; insurance intermediaries (both life and non-life) are, however, free to collaborate and may therefore refer their clients to other intermediaries. 
Banks and financial institutions can only distribute "standardised" insurance products (with some exceptions) and cannot therefore assist the client in relation to the negotiation of a tailor-made insurance policy. 

4. Motor insurance 

Third party liability (TPL) motor insurance is mandatory for all car owners in Italy and the Italian TPL auto insurance sector is highly regulated. Insurers have an obligation to offer TPL auto insurance to all persons requiring coverage. Consequently, insurers also have an obligation to calculate a tariff for each potential client, which must be prepared by an actuary consistently with the insurer's technical data based on the statistics of the previous five years, or market data, if the insurer’s statistics are not reliable. 

A large number of provisions also apply to many other aspects of motor TPL contracts, including their duration, publication of the premiums, pre-contractual information and claims management, as well as reports to be made to the authorities for anti-fraud purposes. 

Since the European Court of Justice has recognised that this legislation is to be considered of general benefit, the above-mentioned obligations and rules apply to both Italian and non-Italian insurers, unless they limit their "Italian" motor TPL licences to fleets only. 

5. CPI business 

In relation to insurance products connected to loans, intermediaries must be transparent as regards commissions received and are prevented from being, directly or indirectly, the beneficiaries of indemnity rights. 

Furthermore, if an insurance guarantee is required for the grant of a loan, intermediaries (i.e. banks or financial institutions offering the loan) can not compel the client to purchase an insurance policy mediated by them. In addition, they are obliged to offer the client at least two alternative life insurance policies, or to accept a life policy selected by the client. 

6. Insurance portfolio transfers 

The consent of policyholders is not required for insurance portfolio transfers, although insured parties must be notified of the transfer and may withdraw from their contracts if the assignee is a non-Italian insurer. 

According to the Italian regulator, an insurance portfolio must (for these purposes) include policies which are still generating premiums and can not be made up of claims only. 

7. Reinsurance 

EEA and non-EEA reinsurers may underwrite risks in Italy under the freedom of services regime - not having an establishment in Italy - without any previous authorisation and with no requirement to post a specific amount as collateral. However, the Italian regulator, for the purposes of the solvency margin of Italian insurers, may disregard reinsurance contracts entered into with a non EEA reinsurer, based on the solvency of the latter. 

8. Financial Products 

Financial products issued by insurance companies and marketed in Italy are subject to the same rules which apply to financial products issued by banks and financial intermediaries under the MIFID Directive and are subject to the supervision of the financial market authority; for certain transactions, a prospectus must be filed with such authority beforehand. 

In relation to both index linked policies and capitalisation contracts, Italian insurers may not transfer to the client the risk of default relating to an issuer of the asset covering the insurer's reserves.

9. Outsourcing 

Outsourcing of insurance activities is allowed, although an insurance company cannot become a so-called “empty shell”. Underwriting cannot be outsourced, but a call centre may underwrite risks on behalf of insurance companies. Outsourcing of essential and important functions must be notified to the regulator beforehand and may not in any case compromise the stability of the company or the quality of its services, nor increase its operational risks. 

10. Pre-contractual information 

Except in the case of cover for large risks (as defined in EU Directives), insurers must provide clients with pre-contractual information, which is contained in an information booklet. The contents and format of this booklet are determined by the regulator. 

In addition to the terms and conditions, the booklet must contain a summary of the insurance contract, with requirements that may differ on the basis of the type of contract.

 

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10 Tips to Get Started with Life Insurance | Help

Many people recognize the need for life insurance, but they don’t take the next step because they feel they don’t have a safe, pressure-free place to start. Here’s what you should know.

1. If you have dependents — you need it 

If you have children or other loved ones who depend on the money you earn, you need life insurance. Its primary purpose is to protect your income. Life insurance helps your dependents keep on living as they would if you were still earning a paycheck. 

2. Life insurance helps replace your paycheck if you aren’t there to earn it 

If you’re looking for a reasonable estimate on the amount of life insurance you should buy, start by multiplying 60% of your annual income times the number of years to retirement. This takes your salary, assumes some normal raises over time, and adds the value of your employee benefits, like healthcare. Then subtract the effect of taxes, and what it costs your family to have you around. 

3. Some life insurance is better than no life insurance 

A good starting place is coverage that equals any outstanding debt (including mortgage, car payments and student loans) + 5 years of annual salary. Use the average American salary, $40,000, to represent your income in your estimate if you’re a stay-at-home parent or currently in-between jobs.

4. Life insurance is less expensive than you think Many people think 

life insurance is much more expensive than it actually is. In fact, many people can get term coverage from a reputable company for a surprisingly low price. A healthy 35 year old can pay as little as $30 a month for $500K of coverage. Life insurance does get more expensive as you get older. It makes sense to buy as much as you may need while you’re young and healthy. 

5. Life insurance is a smart financial move 

If you’re looking for a recommended amount of coverage, you can expect to pay about 1% of your annual salary on the annual cost of term life insurance. (Spending 1% of your income to protect years of income is a pretty good deal.)

6. Make sure you know how much life insurance you get at work 

Many people assume they have more coverage at work than they really do. You should look carefully at the amount of coverage your company may provide, then buy additional life insurance, either through benefits plans at work, or on your own, to make sure you have the right amount of coverage for your unique needs. 

7. Life insurance needs change over time 

Life insurance needs change over time – new family members, a new job, a move, or even a raise at work can change a lot. Review your protection every year during your benefits enrollment period at work or when you receive your Social Security statement in the mail. 

8. Term life Insurance is an easy and inexpensive way to get started 

Term life insurance offers more coverage for less money. It is an easy and cost-effective way to get protection in the short term. Because this type of insurance runs out at the end of the term, use it to protect needs that you can anticipate—like paying off a mortgage or funding college for your children. 

On the other hand, permanent life insurance can also be an important part of your lifetime financial plan. It’s flexible, and can help you meet a number of important goals, including protecting your income building equity, providing an additional source of retirement income, and leaving a financial legacy for your loved ones. You can supplement retirement income by taking loans or withdrawals from accumulated cash value (although the policy’s cash value and death benefit are reduced by the amount taken, plus any loan interest charged). 

9. The financial strength and reputation of the company you buy it from matters 

When choosing a life insurance company, the financial strength and reputation of the company you select is a key consideration to ensure guarantees are kept. Ask around and do some research before you buy. (Publicly-traded life insurance companies are required to report on their financial condition 4 times a year.) 

10. There is no substitute for good advice 

The more you know about life insurance basics, the more control you have over deciding what’s right for you. To get the right answers, some people prefer talking to a trained financial professional, while others favor doing their own research online or in the press. Whatever way works best for you, taking action to protect your family with the right amount of life insurance coverage is an important part of your lifetime financial plan. 

 

 

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The Simple Dollar’s Top Picks for Best Life Insurance

Even if you aren’t required to take a medical exam, you should.At the outset of just about every life insurance policy,
the company has you take a brief medical exam to see what kind of shape you’re in (it’s basically looking for cancer, diabetes, and heart disease). But if you’re young enough, you might get the option to bypass the pokes and prods and just fill out a medical questionnaire. What the company probably won’t tell you is that your choice could result in higher premiums. Without hard medical data to prove your health, you could be regarded as a riskier — and therefore more expensive — bet for the company. 

“Full underwriting (with the use of a medical exam) takes more time, but it’s likely to result in significantly lower premiums.” 
Tony Steuer, CLU, LA, CPFFE Founder, The Insurance Literacy Institute 
Creator, The Insurance Consumer Bill of Rights 

Your driving record and credit score matter, too. 

While age and health make up the lion’s share of your premium value, there are other significant risk factors that companies weigh. If you have poor credit, or a history of traffic violations, those can drive up your premiums. Likewise, if you have a job that consistently takes you to dangerous locales, or requires a lot of flying, you might be perceived as a bigger risk and have to pay more for insurance. 

You and your spouse should each buy a term policy. 

If you’re the primary breadwinner in your family, with a spouse who takes care of the home, you might not have considered the real cost of replacing the work he or she does. Chances are, it’s more than you think. For the past few years, Salary.com has surveyed more than 15,000 stay-at-home moms. In 2016, it found that the 10 most frequent responsibilities (things like day care, driving, tutoring, and cooking) totaled up to a market value of $143,102 a year! This might be what you’d have to pay outside help in their absence — reason enough to buy a separate term policy.

Take Action 

Think carefully about how much life insurance you really need. 

Maybe you’ve heard that you should multiply your annual income by 10 to get your life insurance face value, but five seconds probably isn’t enough to spend calculating something so important. 

First, consider your long-term debts. Do you have a mortgage that will require payments for the next 25 or 30 years? What about student loans, medical expenses, and credit card balances? If you have kids, are you planning to pay their college costs? 

Then ask yourself how much it takes to sustain your household at your current spending habits. 
It’s also worth considering buying a larger death benefit than your beneficiaries will need because life insurance benefits are paid out in a tax-free lump sum, and if invested, can reap a significant amount of interest even in the very first year. 

For example, a $2 million death benefit, if invested at a 5 percent annual rate of return, would earn $100,000/year if left untouched. Take the cost of inflation into account, too. I really like Amica Life’s rider that automatically increases the death benefit to keep its purchasing power consistent with inflation. 

Don’t assume you’re covered through work. 

My friend and his wife are pregnant with their first child right now, and I dutifully reminded him that he should probably buy life insurance. He said he’s covered through his employer-sponsored plan at his architecture firm, but I told him not to be so sure. 

Most employer plans carry a death benefit of far less than you would want your dependents to have, and they’re also not portable if you switch jobs. It’s great if you have employer-sponsored life insurance, but you should probably supplement it with a policy of your own. 

Do yourself a favor and work with a broker. 

Insurance brokers (people who sell insurance for multiple carriers) sometimes get a bad rap because they work on commission, and if they’re slimeballs, they can push an expensive policy that you don’t need just to get a heftier cut of the action. But most brokers aren’t slimeballs, and they can be a huge help. Brokers not only can quickly sift through hundreds of options to find the policies that best fit your needs, but also know which companies are likelier to offer you the lowest premium. How? 

They’ve reviewed insurance policies every day (probably for years), so they’re familiar with the specific underwriting criteria of various companies — which ones are more generous on height and weight tables, or which ones are particularly strict about driving records. You also won’t save money by not working with a broker. Insurance companies assume a broker fee when they set their premiums, so even if you buy your policy through a website like Policygenius.com, your premiums will be the same as if you worked with a broker. The only difference is where that commission money goes. 

Maybe you’ve heard that you should talk to a fee-only financial planner instead of a broker. While it’s true that fee-only advisers don’t receive commission from insurance companies, that doesn’t mean they don’t have some other arrangement that incentivizes them to suggest certain policies. Plus, a fee-only adviser only makes recommendations, leaving you to purchase the policy yourself (and pay the built-in commission). Even though brokers are paid on commission, that doesn’t mean they won’t give you good advice. Just make sure they’re licensed to sell life insurance in your state, and they don’t have a disciplinary record. Both of these pieces of info are publicly available from your state’s Department of Insurance. 

“Insurers are constantly adjusting their underwriting criteria to take advantage of trends or make themselves more competitive in a particular demographic. A good broker will be aware of recent changes that could save you money on your policy.” Shannah Compton Game, CFP, MBA Chief Millennial Money Strategist at Your Millennial Money

The Bottom Line 

If you have dependents who rely on your income, you need life insurance. Term offers the best value for the money, but make sure your term policy is with a financially strong company, with enough coverage and flexibility to allow for changes in your situation — like our top pick, TIAA Life insurance. It pays to shop around, but ultimately your best bet is to use an agent or broker who knows the marketplace.

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Total Cost of Health Insurance UAE

Planning your health insurance 

In today’s times of rising medical costs and lifestyle related illnesses, a medical emergency can happen to anyone at anytime,
significantly impacting the individual both financially and emotionally. Therefore, it is wise to invest in a health insurance plan early on in life. Before zeroing-in on a plan, one has to consider the total cost of health insurance in Dubai. The premium is the most important component in overall cost, but other aspects have to be taken into account as well.

The major components of a medical policy that influence the cost of health insurance in Dubai are 

• Premium

The fixed amount that you pay to purchase a health insurance policy irrespective of whether you receive medical treatment or not. The amount is charged on a yearly basis and doesn’t change whether the policy is acquired through a broker or from the insurance company directly. 

• Deductible

It is your share of medical expenses that must be paid before the insurance company starts paying. For example, let’s suppose that you have a health plan with a AED 50 deductible. If you go for a consultation and the cost of the visit turns out to be AED 300, you’d have to pay AED 50 and the insurance company would pay AED 250. 

Deductibles are not applicable to every type of treatment. Certain treatments, especially in-patient ones, are covered in full which means that you wouldn’t have to pay anything out of pocket. The deductible amounts can vary between AED 25 and AED 75. Plans that have higher deductibles will generally be less expensive. The deductible amount will therefore influence the total cost of your health insurance policy. 

• Coinsurance

This is similar to deductibles, but your share of medical expenses are represented as a percentage of the cost. For example, if your policy specifies 10% coinsurance for maternity, and you have a bill of AED 1,000 for a consultation, then you must pay AED 100 and the insurance company will cover the rest. Coinsurance amounts are usually higher for prescription medications. As is the case with deductibles, the lower the coinsurance amounts, the more expensive the policy. When purchasing a policy, you have to take into account how coinsurance amounts would influence the total cost.

• Expenses resulting from exclusions

Most health insurance policies have a long list of exclusions. It is imperative that you become familiar with theses exclusions to avoid unpleasant surprises. Hair loss for example is generally not covered. This means that if you go to dermatologist for a consultation about hair loss, the cost will be completely borne by you. To keep the total cost of your health insurance policy at bay, make sure that you stay away from excluded treatments that are not medically required.

Choosing a plan that suits your needs 

The health insurance plans that may suit your colleagues or friends could not be the right fit for you. So before opting for the policies that they’ve purchased, take a step back to think about what your specific needs. 

Here are a few of the key factors that you should consider while making this decision: 

Do you want a basic coverage health insurance policy or a comprehensive plan? 

Basic healthcare plans only have the minimum benefits required by the Dubai Health Authority. The deductibles are higher for these plans but the premium are generally much lower. However, for most Essential Benefits Plans, the applicant must have a salary of AED 4,000 or lower.

• Deductible vs. Coinsurance – which should you opt for? 

The main differences between the two is how your share of medical costs would be calculated (fixed amount vs. percentage). Healthcare insurance plans may offer either only one of these or a combination of the two for different depending on the policy. Your decision to go for either or should depend on whether you think you’ll be using your policy for more expensive treatments or not. 

• How much are you willing to spend on a health insurance policy? 

It is important to balance-out the cost and the comprehensiveness of the policy you purchase. Try to figure out how much you might spend on excluded treatments and accordingly decide how extensive your coverage should be (of course, it would be difficult to factor in emergency treatments as they are not possible to predict). You also have to consider whether you’ll have to add your spouse and children onto the plan. 

• Are the doctors and hospitals you usually go to in the network? 

Insurance companies will provide you with a list of medical facilities that you can access without having to pay out of pocket depending on the plan that you choose. Make sure that you choose a policy that has all (or most) of the healthcare providers that you usually use. Otherwise, you’ll have to pay for the consultation or treatment and get reimbursed. It usually takes a few weeks to do so and you end up getting back around 80% of your money back. 

• Do you need a plan that has worldwide coverage? 

If you are a frequent traveler you need to ensure that your plan covers you in all geographic locations that you are usually in to make sure that you get reimbursed for the medical costs that you incur. Some policies also offer direct billing facilities abroad. So remember, it is very important to take some time time to evaluate not only the healthcare plans available, but also your own needs. You can contact one of our insurance consultants or use our comparison platform to make an informed decision. Medical emergencies are not in your control, but a smart choice early on, can help you be prepared for one. 

 

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What You Need to Know When Buying Life Insurance

There are two basic types of life insurance: term and permanent.

The fundamental difference is right there in the name
Term life insurance is only in force during a set period or “term,” while permanent life insurance is yours for your entire life. So why doesn’t everyone just get permanent? Because it’s much more expensive — 10 times more than term, on average. The higher cost makes sense, since the insurance company knows it will be paying out eventually (whereas with term, there’s a good chance you’ll outlive the policy and cost the company next to nothing). However, it also means that most people can’t afford permanent life. 

For most people, term is the way to go. 

Term life insurance is way simpler than permanent. You pay a (much lower) premium for a set period of protection, which typically coincides with your prime working years. You can think of it as insurance on the income you haven’t yet earned. The advantage is pretty obvious: You can guard against uncertainty by securing a large death benefit for relatively little money. And if you invest the money you save by not going with a permanent insurance policy, you can wind up with more cash at the end of your life than a permanent policy would’ve paid anyway (of course, the tricky thing is actually putting aside that difference rather than spending it). 

But even if you don’t invest the balance of what you’d pay for a permanent policy, term life insurance still offers a ton of value by safeguarding your dependents when they’re most vulnerable. You can buy a 20- or 30-year term policy with the expectation that your kids will be able to provide for themselves by its end, and when you and your partner will also hopefully be reaping the rewards of prudent investing, not to mention Social Security and pensions. Sure, your term policy has no value once it expires, but that’s OK — you were paying for the protection.

But there are some cases when permanent makes sense. 

Life insurance is all about covering need, and in some cases the need for it lasts your entire life. One example is for those with special-needs children who will always require care. Permanent life insurance also makes sense if you’ve built up enough wealth that your heirs will need to pay an estate tax — this year, that bar is set at $5.45 million. Life insurance death benefits are not subject to income tax, so if you get a permanent policy, you’ll know that your heirs will have cash-on-hand to pay the estate tax. This may make even more sense if the majority of your wealth is in property or other non-liquid assets.

Permanent life insurance should never be purchased as an investment for the policyholder. 

The value of life insurance is in the death benefit, but insurance companies realized they could sell more of it (and justify higher prices) if people believed it was a sound investment not only for their dependents, but also for themselves as well. As a result, permanent life policies come with a cash-savings feature that you can access during your lifetime. A portion of each premium you pay goes into the “cash value,” which earns interest over time based on how the company invests it. It sounds good, but the returns are generally low because insurance companies are obligated to invest mostly in safe, low-yield securities like bonds.There are also limits on how you can use the cash value in your policy. 
You can apply it to future premiums or use it to purchase more death benefits, but you can never allow it to run out completely — that will cancel your policy. You can also take out a loan based on your cash value, but if you do, you’ll need to repay it with interest — even though you’re the one who funded the account in the first place! 
As a rough example, imagine you buy a permanent life insurance policy with a $500,000 death benefit at age 55. If you leave the cash value untouched, after 30 years it might be worth in the neighborhood of $250,000. You could cash that out (and cancel the policy), but your investment wouldn’t have generated as much return as it would have in, say, an index fund. However, if you keep the policy active, the death benefit for your heirs might be double what you put in.

“Permanent life insurance is rarely a good investment for the policyholder. However, it can be a very good investment for their heirs.” 

Paul Puckett 

Independent Life Insurance Agent & Investment Advisor Representative 

Your health and age at the start of the policy are the biggest factors in determining your premiums. 

The formulas life insurance companies use to set premiums are incredibly sophisticated, but they’re all designed to gauge life expectancy, which means age and physical health are the primary factors. However, your physical health is only actually measured once, via that medical exam when you first apply for coverage. The insurance company then uses population data to project your average risk of dying over the course of the policy (and sets your premiums accordingly). 
This means that the younger and healthier you are at the start of the policy, the lower your premiums will be. It’s also why guaranteed renewability and a guaranteed conversion option are so important, because they too rely on that initial health picture, which is most likely the healthiest you’ll be at any time during your coverage. The following table shows how age and smoking affect monthly premiums, based on a 20-year term policy with a $100,000 death benefit (I excluded Lincoln Financial because it requires a minimum death benefit of $250,000). 
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How to know what your insurance covers in the UAE

As an expat, it can take some time to get used to the extreme weather conditions in the UAE.
However, good career prospects, tax free income and a better quality of life more than compensate for the harsh climate. The UAE’s superior standard of living is also reflected in its world class healthcare facilities. Naturally, top of the line medical care is often expensive. To make sure that healthcare costs don’t get the best of you, take your time in selecting a comprehensive insurance policy.
There is a plethora of policies available in the market but one has to always consider various factors to ensure that the policy provides the most comprehensive and relevant benefits. Many insurance companies offer basic insurance policies, but such plans do not cover a host of common medical issues. An ideal insurance plan offers an extensive area of coverage, a wide network of hospitals and medical centers, efficient customer service and convenient claim settlement when treatment is received outside the network.
Understanding health insurance plans can be a nuisance. Most people don’t know where to look or who to consult for information on available healthcare products. Here are a few important things that you must consider before choosing an insurance policy for you and your family.

1. General aspects of coverage 

The maximum coverage limit of an insurance policy is the overall amount that an insurer will pay for all of the medical expenses incurred by a member during the policy period (usually a year).
The area of cover refers to the geographical coverage of the policy (i.e. the countries in which you are covered under your policy).
The coverage amount and area of cover are two important factors that impact the premium that you will have to pay for your insurance plan. Another important detail to look into is whether the policy covers pre-existing conditions. For instance, if you have a pre-existing heart condition, would a cardiac surgery or angiography be covered by your plan or not?

2. Medical Network 

Make sure that all major hospitals and medical providers that you normally go to, especially the ones closer to your residence, are part of the insurance provider’s network. Furthermore, it would be a good idea to ensure that the medical facilities in the network provide the types of treatments that you are most interested in (you can look at the specialties available at each of the facilities). 

3. Benefits 

One should also look at the list of benefits provided. Note that a policy may or may not have a sub-limit for specific benefits. In addition to the usual benefits, some policies offer extra covers such as dental, optical and wellness benefits. These optional benefits can often be availed by paying an extra premium. 

4. Deductibles and co-insurance 

Deductibles and co-payments are also important factors that should be considered. A deductible is the fixed amount that you have to pay from your pocket for a covered treatment (your share of the medical costs). It can range from AED 20 to AED 75 per treatment or consultation and is usually applicable for out-patient treatments.
Co-payment or co-insurance is the percentage of the total cost that has to be paid by you for a covered treatment.For example, if the maternity benefit is covered with 10% co-insurance, then you will have to bear 10% of the maternity treatment cost and the insurer will cover the remaining 90% of the cost. 

5. Exclusions 

Just like there are treatments or conditions which are included in your plan, there are certain exclusions or excluded treatments in the plan as well. Exclusions are the medical conditions or treatments that will not be covered by the insurer for your chosen plan.
No plan is completely comprehensive; thus, every plan will have a long list of specific conditions which are excluded. Some common exclusions are obesity, hair loss, cosmetic surgery, infertility, HIV or AIDS, vision correction, allergy testing, epidemics, etc.

6. Claim settlement 

Another important component to be considered by the insured is the claims settlement procedure. Generally, the insurer provides direct-billing facilities for both in-patient and out-patient treatments. For out-of-network treatments, you can apply for reimbursement of the expenses incurred. 
This is not a major concern if you are dealing with a small claim but it can obviously cause serious financial burdens if you have to pay out of pocket for a significant treatment or surgery. You should also note that if you opt for treatment outside the insurer’s network, the insurer might not reimburse you 100% of the healthcare costs. 

7. Premium 

A standard insurance policy from a good health insurance provider can cost anywhere between AED 1,500 to AED 10,000 depending on the coverage amount, area of coverage, age and gender of the insured, and the network selected. However, there are other factors that could affect the price of an insurance policy such as chronic and pre-existing conditions. 

8. International Validity 

If you have a job that requires you to travel outside the UAE frequently, you must ensure that coverage travels with you. Choose a plan that has international coverage to avoid coughing up large sums of money if you need medical attention while on a trip.

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