The Friends Provident International investor confidence survey, which is now in its fourth year, found that of the 525 UAE-based respondents, 34% had a mortgage but, despite the fact that most local banks stipulate that their customers have life insurance in place as a condition of the loan, only 33% of respondents with a mortgage have life cover.
Matthew Waterfield, FPI’s general manager, Middle East and Africa said: “I was surprised to see that just one-third of mortgagees have life cover in place to protect their mortgage, and even less with critical illness cover.
“I’m not sure that people realise the implications if the family breadwinner were to die or fall seriously ill. I would urge anyone with a mortgage who does not have cover in place to take financial advice with a view to ensuring that their family is protected should the worst happen.”
The report also found that the majority of respondents (56%) feel either financially secure or very secure, with just 2% of respondents feeling very insecure.
Waterfield added: “It is good that so many people feel secure financially. However this should not stop anyone from visiting an adviser and undergoing a regular ‘financial health check’.
“As is evident from the finding on mortgage life and critical illness insurance, people may not be aware of the cover they need or indeed the investment opportunities they are potentially missing.”
