Ask a random expat in Dubai: “Do you have Life Insurance?”
50% will say: “Yes, I have it through my work.”
They sleep soundly, believing their family is protected. In reality, they are walking on a tightrope without
a safety net. Relying on “Group Life Cover” (Employer Insurance) as your only protection is
the single commonest financial error in the region.
Here is why “Work Insurance” is not “Real Insurance.”
1. The “Resignation” Gap
Your company insurance is tied 100% to your visa.
The Scenario
You work for a Multinational Corp. You have wonderful cover (3x Annual Salary).
You decide to change jobs. You resign on June 1st.
June 1st: Your cover stops the moment your visa is cancelled.
June 15th: You are on a “break” between jobs. You have a heart attack.
Payout: ZERO. Your old company is not liable because you left. Your new company hasn’t
enrolled you yet.
2. The “Uninsurable” Trap
This is the long-term disaster.
Imagine you work for the same company for 10 years. From age 30 to 40. You rely on their insurance.
At age 40, you are diagnosed with Type 2 Diabetes.
At age 41, you leave the company to start your own business.
Now you try to buy your own Personal Life Insurance.
The insurer says: “Sorry, because of your Diabetes, we either decline you or charge you 300%
extra.”
You missed the chance to buy cheap, personal insurance when you were healthy at 30. Now you are uninsurable,
and you have no company cover. You are naked.
3. The “Capped Limit” Problem
Company policies are “One Size Fits All.”
- Standard Limit: Usually “12 Months Salary” or a flat “AED 100,000.”
- Your Real Need: If you earn AED 20,000/month, the payout is AED 240,000.
Is AED 240,000 enough?
It covers: Loan repayment (Maybe).
It leaves: Nothing for your kids’ 15 years of school fees. Nothing for your wife’s retirement.
A proper personal policy usually covers 10x to 15x Annual Income (e.g., AED 3 Million). The
company policy provides 10% of what you actually need.
4. The Beneficiary Bureaucracy
In a personal policy, you sign a “Beneficiary Form” naming your wife.
In a Group Policy, the “Master Policyholder” is the Company.
When you die, the insurer pays the check to the Company HR Department, not your wife.
The Company then has to pay it to your family.
The Risk:
- HR might delay.
- The court might freeze it as part of “End of Service Benefits.”
- The company might even deduct “outstanding loans” you owed them from the death benefit.
Comparison: Group vs. Personal
| Feature | Company (Group) Cover | Personal Cover |
|---|---|---|
| Owner | The Boss owns it. | YOU own it. |
| Portability | Lost if you change jobs. | Follows you anywhere (even if you leave UAE). |
| Control | Can be cancelled by HR anytime. | Guaranteed as long as you pay. |
| Cost | Free (to you). | Paid by you. |
The Verdict: Company cover is a “Bonus.” It is the cherry on the cake. It should never be
the cake itself.
FAQ: Supplementing Your Cover
Q: Can I convert my company policy to a personal one when I leave?
A: Rarely. Some insurers offer a “Continuation Option,” but it is expensive and paperwork-heavy. It is
easier to buy your own fresh policy.
Q: If I have both, do both pay?
A: YES. Life Insurance is not like Car Insurance. You can have 10 policies. If you die, ALL
of them pay out cumulative amounts. Your wife gets the Company Check AND your Personal Check.
Now look at your Company Insurance Certificate. Is the number equal? If not, you have a “Protection Gap.”
Fill it today.