Retirement Planning in UAE

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The future retirement plan for life is a vital issue for all people and it has to be addressed in proper manner to get the best solution for the retired life. A suitable pension plan is always be in the must-do preference for an employee or professional, who is still in full-fledged working situation. There are two different approaches in retirement plan; while someone is looking for maximizing the already available scope, the other is trying continually throughout the period of employment to keep a standard and secured pension cover.

While there are some coverage that are available for the nationals but the expats, who are the majority in the employment segment, are failed to avail any such coverage, which is better than ongoing gratuity plans. Experts in this financial segment have long been arguing for a full-fledged and better Pension Plan UAE for the expats employees, which would be much beneficial for the entire working class. There are certain private banks, as well as, financial institutions in UAE; currently providing pension schemes for nationals and also for expats of varied nationalities. Although there is no legal provision to bind the companies or employers for mandatory pension schemes but the government is considering this particular issue, because there are very strong recommendations from various corners and experts to draw a specific provision at an earliest.

Nonetheless, this kind of reform will make the country a better and attracting financial nation for the outer world while the employers are having some reservations for this kind of pension schemes. The principal reason of reluctance of employers is; if the employer wants to retrench any employee on technical or other ground, the mandatory scheme may be hindrance in doing so for the expats. Another reason of their apathy is the financial burden and responsibility, which they don’t want to take at this state of business environment.

Life cover scheme in Saudi Arabia

Life Insurance Saudi Arabia is an important issue not only for the domestic national but for expats as well, who often comes to this country for a better fortune. The offshore plans of pensions are considered as an efficient tax solution for general expats and provides a feeling of living in an almost tax free jurisdiction. This particular scheme is a comfortable and employee friendly opportunity as at the time of maturity there are customized options of drawdown the money, invested in the scheme for years. This is also considered to be a very good Investment Plan Saudi Arabia, because it is not only an insurance coverage, the very essence of this scheme is the right kind of an investment that makes you richer at the time of retirement. According to various experts, this investment is quite safe and able to generate a rational value addition for the money invested in the scheme.

These schemes are able to play multifarious roles in one’s life by providing:?

Solutions for retirement benefits

A tax free income and investment opportunity

Child’s Education and upbringing

Stable income for family even after the death of the insurer.



The Key Man Life Insurance Policy: What and Why?

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Do you own a business? Are there some important people associated in your business other than you? Now, are these people responsible for the proper functioning of your business, so much so that without them your business might not generate desired profits? Then what happens if one of them suddenly is unable to work, unable to execute their responsibilities, for some reason or the other? Some of the extreme reasons can be their death or some severe illness that requires them to be hospitalized for a long period of time. What do you do then? To ensure that such situations do not affect the well-being of your business, the best option is to invest in a Key Man Life Insurance Policy.

What is a Key Man Life Insurance Policy?

A Key Man Life Insurance Policy is like any standard insurance policy, except in this case the policy is carried out by a particular business/company. The company takes a Key Man Life Insurance to compensate for any financial losses that can be suffered by the company in case a very important member of the company is unable to continue working, in cases such as death or severe illness, for a long period of time.

A key man of company can be any person whose specific skill set or knowledge is indispensable to the company and who is responsible for the major profits of the company. This person can be the director, a key sales manager, a key partner, a key project manager etc. The main reason such a policy is taken by the employer is to compensate for the losses that the company might suffer or compensate for the additional expenditure to hire and train a replacement (in case of death of the employee).

So, a Key Man Life Insurance Policy not only covers for death but also provides critical illness cover in UAE. So your business doesn’t need to suffer losses in case someone important falls critically ill and is unable to work for a long duration. The investment vehicle plan in UAE is simply not enough for the business to cope up with the loss of one its important employees.

Why should you opt for this?

The first and foremost reason you should opt for this insurance policy is that your company’s well-being is in your hands. You should make wise decisions for the welfare of your business so that it can stay immune during unforeseen circumstances like the death of an important business associate or employee. It is impossible to know from beforehand what might happen in the future. Therefore, it is always advisable to plan ahead and be prepared for any difficulties that might threaten the welfare of your business in the future.

Added Benefits

Income tax recognizes the Key Man Life Insurance Policies as an important source of deduction of capital. Therefore, the premium paid for the Key Man Insurances for an employee can be claimed by the company as a business expense.


Why Do You Need a Corporate Pension Plan in Saudi Arabia?

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A workplace pension or a corporate pension is a way of saving money from your salary for your retirement that is basically arranged by your employer or basically the corporation that you work for.

It maybe that you are young and near the start of your working life and retirement may seem a long way off but believe it or not, time flies by quickly and very soon you may have been in your workplace for over twenty years, or you are simply five years away from retiring. No matter what stage of work you are at, or whatever your retirement plans are, it is inevitable that you will require a regular income to help support you and your family after you finish work.

It is important that you consider your final needs and long term goals for retirement quite early so as to have a better chance of achieving them. Considering the economy, one of the most tax efficient ways by way of which you can save for your retirement is to join a corporate pension plan, for instance like the many Pension Plans UAE

The earlier you start saving for your retirement, the longer you can invest your money and the greater the chance of it maturing. With the lack of government and corporate pensions, more and more people are getting concerned by the day. Consequently, each day more and more individuals are being forced to take matters into their own hands so as to ensure that they are covered for their retirement and do not face any financial trouble during their old age.

In the future, if the account holder were to meet death, then the amount of money in the offshore pension would go to the beneficiaries as listed by the account holder and not a single dime of it could be taken or controlled by pension rules or the government.

Doesn’t an offshore corporate pension plan sound great? So not only does an offshore pension solution offer greater complete tax free maturity for your fixed deposit, but it is also flexible and in the event of death, the asset can be passed onto an enlisted individual.

How do corporate pensions work?

The way that any corporate pension works is that certain percentage or amount of your monthly pay is automatically deposited into the pension scheme on every payday. In most schemes, your employer or the company also adds a certain amount of money into the pension fund for you, and the government exempts your pension fund from tax.

How does Life Insurance work?

A life Insurance, in layman’s terms, serves as a source of income for your family in the event of your death. In the case of most Saudi Arabia Life Insurance schemes, it covers most mortgages just so that your family isn’t left with a huge debt in their hands. It also provides for your children’s educations and any long term academic purposes.

Your Basic Guide to Investment Plans Saudi Arabia

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Pension reform of 2013 has widened the options of investment available all the people in Saudi Arabia. Along with this, it has also relaxed the set of rules that govern the sale and purchase of assets within a person’s pension plan.

Why do you need life cover insurance UAE?

At a certain point in your life, you may wonder as to why you need life insurance. Here are a few reasons as to why:

Your Family’s Financial Requirements

If you happen to be the sole earning member of your family, then the fate of your entire family depends upon you. In the event of your death, there will be no steady source of income for the family members and consequently, the standards of living will deteriorate. Your kids’ education and other academic activities may suffer. But if you have a life insurance, all of it is paid for.

Loans and Expenses Repayment

Have you taken some sort of a loan for your house, your car or any other thing with your spouse? Have you ever borrowed any money from someone? Also, you may have just started your family and your child is still very young. Now imagine what happens to all of this if you were to ever pass away suddenly. Your spouse has to bear the entire burden of paying off these loans. These are some major expenses with which you can help your spouse by buying a life insurance Policy early in life.

Draw Loans Against Insurance

One of the benefits of buying a life insurance policy is that you can also use itto draw a loan against it. Thus, it will serve a dual purpose.

Diverse Investment Options

A good Life insurance Policy can also be used as a good investment option. Since there are various kinds of insurance policies, you can use them for different purposes. For instance, like Private Pension Plan Saudi Arabia, Term life insurance plans, child education insurance plans, Investment Plan Saudi Arabia, retirement plans, whole life insurance plans, among others. All of these are good life insurance policies.

Imagine you or anyone in your family falls seriously sick all of a sudden. So what do you do? In the light of how expensive the health care programs can be and how much private hospitals cost, it is always a good idea to buy a life insurance policy. They act as a good protection tool against the financial pressure which you have to face during a serious accident. With a nice insurance policy, you can afford to get treatment from the best hospitals without worrying about the financial burden. It is advised to buy a life insurance policy when you are young and healthy.

Tax Benefits

The best way of saving taxes is to buy a Life insurance y. The Private Pension Plan Saudi Arabia, for instance exempts all and any pension plans from government intervention and extra taxing so that you can enjoy a worry free old age.


Looking for a Cost Effective Life Insurance in the Market?

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Our lives are fraught with difficulties and so to safeguard ourselves from accidents or mishaps we need to protect ourselves. So what would do we do? Life insurance policies can be the most effective way by which we can protect or at least insurance ourselves against these uncertainties. But there are certain things that you should keep in mind while investing in life insurance policies.

Things to be kept in mind:

Businessmen should go for Key Man Life Insurance Policy. This type of insurance is taken to safeguard the business organization from financial losses in case of the death of one or more employees or owners. Any person can be a Key Man provided they should be either director of the company or key project managers or key sales people or people with specific skills occupied in a particular business. This it also helps the company in its tax planning and protects the immediate families of the businessman from getting affected by the vagaries of the company.

Shareholders should go for Shareholder Protection Plan Saudi Arabia. This not only helps the shareholder but also the deceased shareholder’s family as they can realize the value of the business interest. The shareholders thus can reduce the risk involved in their business. Stefan Terry provides financial assistance to various corporate companies.

Insurance should be a must:

Every person needs insurance cover to his or her personal debts, medical and funeral bills. Therefore insuring yourself and your business should be one of your main concerns until you have enough assets to cover the expenses after you are gone. Moreover, even if you are single, you still need to insure yourself.

Thus it is clear from the above discussion that insuring oneself and ones business has various advantages. Although insuring may initially involve some costs but it will definitely benefit one in the long run. So, leave all the stress aside and let your insurance policy deal with them, while you rest at peace and enjoy a carefree life. One cannot predict future disasters or mishaps that may happen in your life but through insurance, you can protect yourselves from them and live a happy life!


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