Three Pro Tips for Family Financial Preparedness

In October 2020 and February 2021, MetLife partnered with Ipsos to conduct a survey of 2,000 adults in the UAE. Our goal was to understand family financial preparedness in the face of eventualities such as job loss, illness, or loss of income. We found that nearly half of adults in the UAE — 47% — are not financially prepared to face an unfortunate incident such as these.

That’s why MetLife Gulf assembled a new e-book, Four Easy Steps to Improve Your Family’s Financial Wellness and Security. This brief but thorough guide can help you improve your family’s financial preparedness and your own peace of mind in the face of life’s eventualities. The following are just a few of the key recommendations you can find in this guide, based on our research.

1. Don’t let good health today hide the financial risks your family faces in the future.

Eventualities like job loss, death, and critical illness are looming possibilities for all of us. But we are not always aware of the financial impact an eventuality can have on our families, especially at times when those incidents seem unlikely or distant in time. Even among UAE adults with both corporate medical insurance and individual insurance, 70% of UAE adults believe their insurance will not cover an eventuality; or, they have experienced an eventuality which their insurance did not cover. These adults feel underinsured, or they have realized there are hidden costs that can impact their financial stability, as a result.

Pro Tip #1

Take stock of your top financial risks — including lack of savings, high inflation rates, potential health issues among family members — and the potential fallout from unexpected loss of income due to an accident, disability, or even a critical illness. Consider how investing in low-cost protection insurance solutions today can protect against future crises and provide you peace of mind.

2. Save each month so that you can handle major unexpected expenses.

If you are like 90% of UAE adults in our study, your family members — children, parents, or spouses — depend on your income, either fully or partially. If that’s the case, you need options to help maintain your family’s financial wellness in the event of a sudden loss of your income.

Pro Tip #2

Ensure you have savings sufficient to support you and your family for months or even years in the event of lost income. Invest in insurance solutions that will protect you and your family beyond that period in case you are unable to regain your income in a timely way. With these in place, you can focus on your wellbeing, your recovery, and finding new income — rather than your finances — during a time of crisis.

3. Align your family’s needs with the right types of insurance.

“Protecting family and dependents” is the number-one insurance-policy element in demand among those seeking insurance in UAE, according to our study. But there is a clear “needs gap” with most insurance policy owners, who claim that existing policies do not align with the needs of their families.

Pro Tip #3

Take active steps to deepen your understanding of insurance options available to you. Then, determine how much of your monthly income you can safely allocate to insurance products that will protect your family’s long-term financial wellness.

Learn More in Our Family Protection Guide

Be assured that you are making the right decisions about life’s most important assets — family, prosperity, and personal health. Access our guide and discover four easy steps to improve your family’s financial security and wellness. In addition to protecting your family, you can achieve financial wellness, confidence, trust, and peace of mind for yourself.