Zurich Futura Review

April 23, 2016

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What is a Zurich Futura Policy?

Zurich Futura is a ‘Whole of life’ insurance policy, that covers you till the age of 95, and has some cash value when and if you decide to cancel it.

Buying a Zurich Futura is similar to Buying a Property On Mortgage

Imagine, you bought a property on mortgage:

You would typically pay the mortgage on a monthly basis, till the loan finished in about 10, 15, or 20 years as per you choice.
Then you would own the property for life.
If you sold it after 15-20 years, you would get some money back depending on the value of the property.

Zurich Futura works pretty much the same way:

You pay the life insurance premiums over 10, 15, or 20 years on a monthly, quarterly or yearly basis, as per your choice.
You would be covered for life (till age 95).
Should you decide to cancel the policy at any age, you would get some money back depending on the market value of the investment component.

Is Zurich Futura the cheapest form of income protection?

Not really, Zurich Futura is not the cheapest form of income protection.

In fact a term policy with similar cover costs about one-third of the price of a whole-of-life insurance policy like the Zurich Futura.

However a Zurich Futura has some advantages over term life cover?

Increase or decrease premiums – You can alter the benefits and premiums up or down, based on changing income and financial conditions.

Contribution holidays – Unlike term policies you can take cumulative contribution holidays of up to 2 years after the nil allocation period of 2 years has passed. Obviously you have to write to Zurich requesting a contribution holiday.

Be covered after 79 – Most term life policies cover you till the age of 79. If you feel that you need cover after 79, the Zurich Futura is the only option.

Pay premiums over a limited term – As an expat you may not stay here in the UAE forever. Zurich Futura allows you to pay over a limited term that you select, e.g. between 7 and 50 years depending on your requirement, and if you move abroad after the payment term is completed, you don’t have to continue paying.

Cease payments after some years – Say for example you decided to choose a 15-year payment term to be covered till 95 for your chosen benefits and then you find out that you have to leave the UAE after say 10 years.You can at that point ask Zurich how long your benefits will last at a given growth rate if you stop contributing. If they say that benefits may last till a certain age and you are okay with it, you can stop paying further premiums.

Pay your premiums as a lump sum – Zurich Futura is the only product in the market that allows you to pay all your premiums as a lump sum, with a significant discount on the total whole of life premiums (if you paid them on a regular basis) and be covered till 95.

What are the disadvantages of Zurich Futura over term-life cover?

Expensive premiums – Premiums for the same cover compared to term life cover are about 3x more.

Save more money – You can save more money by investing the difference between the Futura and term life premiums and grow your wealth faster.

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Feel free to leave your comments and questions below.

About the author

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Amit is an Independent Financial Advisor, based in Dubai since 1997. He is part of the prestigious ‘Million Dollar Round Table’ (MDRT), which is an elite club of the best financial advisors worldwide.

He has authored the ‘6-Step Financial Success Guide’, and the book ‘Creating, Preserving, Distributing Wealth’.

He helps business owners and professionals ‘Create A Second Income’ through investments.

Amit Mitbawkar

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