United Arab Emirates: What will happen to my tip and life insurance after I die?


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Dubai: If you are a professional working in the United Arab Emirates, what happens to your tip if you die before you retire or if you are eligible to receive your tip? Additionally, if your employer has provided you with life insurance coverage, is the amount of insurance provided to your selected candidate, or – in the case of Muslim expats – is the amount of life insurance distributed in accordance with Sharia law?

Gulf News spoke to Ruksana Ellahi, a senior partner at Al Tamimi and Company, who said that the application of inheritance laws depends on whether or not the amount is considered to be part of the estate of a anybody.

How is the gratuity given to surviving family members?

Severance pay and tips are like cash in your account and are part of a person’s estate. According to Ellahi, these funds cannot be released until a court ruling is obtained after the death of a person, on the distribution of their property.

“End-of-service and bonus payments are part of the person’s estate and therefore cannot be distributed by the employer until they have received the estate order or other court instructions. “said Ellahi.

Ruksana Ellahi

Ruksana Ellahi

It also means that, in the case of Muslim expatriates, the gratuity would be subject to the distribution of assets in accordance with Sharia law.

What happens to a person’s life insurance after death?

In the case of life insurance, however, the amount is not considered to be part of a person’s estate.

“Thus, upon the death of the person, the insurer can pay the proceeds of the contract directly to the beneficiaries detailed in the nomination form, on presentation of the person’s death certificate. No court order or estate order is required, ”Ellahi said.

If your company requested a life insurance policy at the time of recruitment, you would have been asked to identify a candidate for the policy. However, if you don’t remember providing a candidate, Ellahi advised readers to contact their human resources (HR) department and ask for more details on their life insurance policy.

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