Affordable 5 Year Term Life Insurance Plans in UAE | Compare & Buy

In today’s unpredictable world, securing your family’s financial future is more important than ever. A 5 year life insurance policy is one of the simplest and most affordable ways to ensure that your loved ones remain protected during difficult times.

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Whether you're transitioning between long-term policies, planning for a specific short-term financial goal, or working in a high-risk job, a 5 year term life insurance policy gives you just the right coverage without locking you into long-term commitments.

Best Term Insurance Plans in UAE

Some of the best Term Insurance quotes in UAE & Dubai are:

What is a 5 Year Life Insurance Policy?

A 5-year term life insurance policy is a contract that provides life coverage for five years. If the insured person passes away during this period, the nominee receives the sum assured as a death benefit. However, if the policyholder survives the term, there is no maturity benefit, making it a pure protection plan.

This makes it an excellent choice for people looking for short-term coverage, especially those —

  • In high-risk jobs
  • Transitioning between jobs or countries
  • Nearing retirement
  • Looking for affordable life cover for a specific financial need

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Why Choose a 5 Year Term Life Insurance Policy in the UAE?

Here are some compelling reasons to consider a 5 years term insurance plan in the UAE —

Benefits 

Details

Affordable Premiums

Short term means lower risk for insurers, leading to lower premiums. Some plans start under AED 200/year

High Coverage

You can get coverage of up to AED 5 million

Flexible Payment Options

Pay premiums monthly, quarterly, annually, or in one go

Quick Approval

Minimal documentation and faster underwriting for short-term plans

Rider Add-ons

Add critical illness cover, accidental death benefit, premium waiver, etc

Custom Payout Options

Choose between lump sum or staggered payments for beneficiaries

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How Does a 5 Year Life Insurance Policy Work?

The working mechanism is simple —

  1. You buy the policy and choose your coverage amount (sum assured).
  2. Pay premiums for 5 years (based on your chosen frequency).
  3. If you pass away during the term, your family receives the death benefit.
  4. If you survive the 5 years, the policy ends, no returns are paid.

Note: This type of insurance is solely for protection with no investment or no savings component

Best 5 Year Term Insurance Plans

1. Term Life Protect – HAYAH Insurance (Previously AXA GCIC)

Plan Type: Level Term Plan
Life Cover: AED 1,000,000
Policy Term: 5 years
Premium: AED 667 yearly*

✅ What’s Included:

  • Full life cover from day one for both accidental and sickness-related death
  • Terminal illness cover of AED 500,000 (included)
  • Temporary life cover of AED 900,000 from application date to policy issuance
  • Free access to HAYAH’s Priority Screening services
  • Flexible premiums: monthly, annual, or one-time
  • Option to pay in AED or USD

➕ Optional Add-ons:

Add-on

Coverage

Premium (5 years)

Accelerated Critical Illness

AED 100,000

AED 138.96

Permanent Total Disability

AED 1,000,000

AED 107.14

Passive War Risk

AED 1,000,000

Included

⚠️ Conditions:

  • Pre-existing conditions are covered subject to approval
  • Medical checkups might be required based on age, health, or coverage amount.

 

2. International Term Assurance – Zurich Insurance

Plan Type: Level Term Plan (ITA and IDTA options)
Life Cover: AED 1,000,000
Policy Term: 5 years
Premium: AED 1,254 yearly*

✅ What’s Included:

  • Lump sum payout upon death due to accident or illness
  • Optional critical illness coverage (e.g. cancer, heart attack)
  • Choose beneficiary: family member or lender (like a mortgage)
  • Worldwide coverage
  • Customisable term (up to 35 years)

➕ Optional Add-ons (Available on request):

Add-on

Coverage

Accelerated Critical Illness

AED 175,000

Permanent Total Disability

AED 175,000

Premium Waiver

AED 1,000,000

⚠️ What’s Not Covered:

  • Suicide/self-inflicted injuries in the first year
  • Death after the term ends
  • Missed premiums or dishonesty during the application

 

3. Life Protect Term Plan 278 – LIC International

Plan Type: Regular Pay, Level Term
Life Cover: AED 1,000,000 (Min USD 100,000)
Policy Term: 5 years
Premium: AED 1,170 yearly*

What’s Included:

  • Death cover with critical illness rider option (37 illnesses covered)
  • Premiums vary for smokers vs non-smokers
  • Entry age starts at 18; coverage up to 65 years
  • Worldwide coverage and multiple payment modes

➕ Accelerated Critical Illness Rider Covers:

  • Stroke, cancer, heart attack, organ transplant, kidney failure, coma, severe burns, major head trauma, etc.

 

4. Critical Illness Premium – Arabia Insurance

Plan Type: Critical Illness Cover (not a pure term life plan)
Life Cover Equivalent (Critical Illness Payout): AED 1,000,000
Policy Term: 5 years (renewable)
Premium: AED 1,370 yearly*

✅ What’s Covered (after a 3-month waiting period):

  • Major illnesses like cancer, stroke, heart surgery, kidney failure, advanced dementia, MS, Parkinson’s, paralysis, organ transplant, etc.
  • Worldwide coverage
  • Entry age: 18–59 years
  • Critical illness covers up to USD 500,000

⚠️ Important Notes:

  • Focuses on illness-related payouts, not life cover
  • Not suitable for those looking for pure death cover alone

 

5. Fixed Term Takaful – Takaful Emarat

Plan Type: Level Term Plan
Life Cover: AED 1,000,000
Policy Term: 10 years
Premium: AED 705 yearly*

✅ What’s Included:

  • Constant sum covered for full term (AED 1,000,000)
  • Terminal illness cover included
  • Optional accelerated critical illness cover
  • Takaful model: Shared surplus from the community risk pool
  • Suitable for Sharia-compliant protection seekers
  • Worldwide coverage

➕ Optional Add-ons:

Add-on

Coverage

Premium (10 years)

Accelerated Critical Illness

AED 100,000

AED 206

⚠️ Conditions:

  • Pre-existing conditions covered upon approval
  • Requires regular contributions (monthly/yearly)

✅ Comparison Snapshot

Plan

Yearly Premium*

Critical Illness Addon

Terminal Illness

Disability Addon

HAYAH

AED 667

AED 138.96 (AED 100K)

Included

AED 107.14

Zurich

AED 1,254

Request (AED 175K)

Included

Request

LIC Intl.

AED 1,170

Rider Included (AED 1M)

Part of Rider

Not mentioned

Arabia Insurance

AED 1,370

Included

CI Focused

Takaful Emarat

AED 705

AED 206 (AED 100K)

Included

Not mentioned

*For reference only — actual premiums may vary as per your age, health profile, and other factors 

Key Features of 5 Year Term Life Insurance

Here’s a closer look at the core features of a 5 year life insurance plan —

✅ Death Benefit: Paid to your nominee if you pass away during the policy term

💰 Low Premiums: Especially for young, healthy applicants

📈 High Coverage Ratio: Pay less, get more protection

🚫 No Maturity Benefit: Pure protection without return if you survive the term

🧾 Optional Riders:

  • Critical illness cover
  • Accidental death cover
  • Premium waiver in case of disability

📆 Premium Flexibility: Pay monthly, quarterly, yearly, or upfront

🧘 Peace of Mind: Short-term coverage with full financial security for your dependents

Who Should Consider a 5 Year Life Insurance Plan?

A 5 year term plan suits the following individuals —

Category

Why It's Suitable

Sole Breadwinners

To secure your family’s financial future in your absence

Senior Citizens (under 65)

Quick cover without a long-term commitment

Expats with Limited Stay

Protection during your UAE residency period

High-Risk Jobs

Short-term safety net with high death benefit

Temporary Financial Obligations

To cover short-term debts or educational goals

Eligibility Criteria for 5 Year Term Insurance in the UAE

To buy a 5 year term life insurance policy in the UAE, you generally need to meet the following requirements —

Criteria

Requirement

Age

Minimum 18–21 years, Maximum ~65 years (varies by insurer)

Residency

UAE nationals or expats with valid residence visa

Health

Medical history and lifestyle assessed before approval

Occupation

Higher premiums for risky professions

Documents Required

To apply for a 5 year life insurance policy, you’ll typically need the following —

  • Emirates ID
  • Passport + UAE residency visa (for expats)
  • Salary certificate or income proof
  • 3–6 months bank statements
  • Medical records (if applicable)
  • Proof of address (utility bill, tenancy contract)
  • Completed insurance application form

Claim Process for 5 Year Term Life Insurance in the UAE

In the unfortunate event of the policyholder’s death, here’s the process for the beneficiary to file a claim —

Step-by-Step Claim Procedure:

  1. Notify the insurer immediately about the incident.
  2. Submit the claim form along with necessary documents.
  3. Verification by the insurer.
    Payout of the death benefit in lump sum or installments.

Documents Required for Claim:

If Death Occurs in UAE:

  • Death certificate (original)
  • Medical report
  • Passport copy with visa page
  • Emirates ID
  • Insurance certificate
  • Police report (in case of accident)

If Death Occurs Outside UAE:

  • Death certificate attested by UAE embassy
  • Visa cancellation page
  • Additional documents as requested by insurer

Final Thoughts: Is 5 Year Term Life Insurance Worth It?

A 5 years term insurance plan is a great way to get short-term protection without the commitment or cost of long-term plans. Whether you're safeguarding your family during job transitions, securing a loan repayment, or planning for an upcoming financial obligation, it delivers peace of mind at an affordable price.

If you're not ready for a 20- or 30-year plan but still want solid coverage, this is an excellent stepping stone.

Frequently Asked Question

Can I renew a 5 year life insurance plan?

Yes, many insurers allow you to renew your 5-year term plan or even convert it into a longer-term or whole life policy, depending on the provider’s terms and your health status at the time.

Will I get any money if I survive the 5 year policy?

Typically, term plans don’t offer maturity benefits. However, if you’ve chosen a Return of Premium (ROP) rider, you’ll get back the premiums paid, excluding any extra rider charges or taxes.

Can NRIs buy a 5 year term plan in the UAE?

Absolutely. NRIs can purchase term plans in the UAE, provided they have a valid UAE residence visa and meet the insurer’s eligibility criteria such as age, health, and income documentation.

What happens if I stop paying premiums?

If you stop paying your premiums, your policy may lapse after a grace period (usually 30 days), meaning you’ll lose your life cover and all benefits, unless there’s a non-forfeiture or reinstatement option.

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