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Take time to choose an insurance plan
How do you find out if there are new approaches to saving schemes in the market? Here's how.
- By Sharon Gardner, Special to Gulf News
- Published: 23:29 July 11, 2008
- Global insurance firms offer you an extensive variety of insurance schemes and packages that are constantly upgraded to meet their worldwide services.
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Q: I have been a working expat in Dubai for the past seven years. I have seen the insurance market expand to welcome increasing numbers of companies and financial advisors. I am not sure whether to choose a national or an international firm for my savings scheme. Additionally, my current scheme hasn't given me the rewards I anticipated. How do I find out if there are new approaches to saving schemes in the market?
A: Savings and investments is a rapidly growing market, and there could be better schemes now available to meet your current and future needs. Because of the wide variety of products, you are in a position where you can virtually choose a bespoke investment scheme - this has many advantages, but it can also feel like a minefield out there.
You certainly need to sit down with a reputable financial advisor - preferably who is independent, and not tied to a company - so that you can consider all options on offer.
First, you need to check if there are charges or not for removing your money from your current scheme. You will then need to work out the amount you are able to invest and what kind of return you will be looking for. The advisor will then be able to help you focus in on the kinds of products that will be best suited to your situation.
Like the growing number of international banks that now have a very strong presence across the UAE, there are a growing number of well established global insurance firms.
There are always pros and cons to banking or investing with local and international firms. A good example with international banking is they are often able to offer very competitive interest rates, and also provide the opportunity for overseas investment.
It is however, worth considering the national banks of the UAE however, as they have a good understanding of the Middle East market.
Similarly with insurance brokers, they have an in-depth understanding of regional business trends and are able to gain a better perspective of the needs of the international investor to be able to advise them.
Global insurance firms offer you an extensive variety of insurance schemes and packages that are constantly upgraded to meet their worldwide services.
You should always ensure that you only deal with people who are licensed and provide financial products within the UAE.
You may also want to think about takaful. This differs from conventional insurance - takaful is compliant with Sharia law and based on the concept of collective insurance.
Global financial sector
One of the key attractions of takaful - and one of the reasons why it is among the fastest-growing areas in the global financial sector - is the extent to which products are being made available for every element of a person's life.
The questions you should ask with regard to an insurance policy, from a consumer perspective, should outline your individual needs and goals. You need to understand what exclusions exist within policies and you need to shop around before deciding what suits you best.
You may find an insurance package that suits your needs best from a local insurance broker where their advisors may have the edge in understanding the market climate better.
If you are thinking of putting your money to work you need to consider mutual funds, bonds and equity investments. The UAE is often seen as the perfect place to invest in property with its booming market, however this can be a very involved and time consuming process which you would have to watch very closely.
As with most financial decisions it is worth shopping around to compare the different options that will be available to you. Take your time to make sure you are happy with the investments recommended to you and they offer the kind of assurances you need.
The writer is operations director at Nexus, a leading regional financial adviser. The opinions expressed above are the writer's and don't necessarily represent the views of Gulf News. Please send your questions to advice@gulfnews.com.
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