Everything You Need to Know About 5-Year Term Plan in UAE

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If you are the sole breadwinner for your family, providing them with financial protection should be your foremost priority. By purchasing a term insurance plan, you can ensure that they will never be short of funds in case of your unfortunate disability or demise. 

With a term insurance plan, the insurance company provides your family members with financial protection in the event of your unfortunate demise. But to get the right coverage and benefits, you must know what type of term insurance plan you must buy. 

The insurance companies in the UAE offer different types of term insurance plans with varied benefits and features. In this post, we will talk about how a 5-year term insurance plan works in the UAE. Let us begin with what a 5-year term life insurance plan is.

What is a 5-year Term Life Insurance Plan?

A 5-year Term Life Insurance Plan is a term insurance plan that provides insurance coverage to the policyholders for five years. This is one of the shortest financial investment options for investors. The 5-year Term Life Insurance Plan comes with cheaper insurance rates in comparison to other term insurance plans. 

With most short-term term insurance plans, the term insurance companies in the UAE provide the policyholders to convert their policy as soon as it expires. Make sure you check with your chosen insurance company if they offer such benefits. Keep reading to know more about the features and benefits of a 5-year Term Life Insurance Plan.  

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Features of a 5-Year Term Life Insurance Policy

Here are the major features and benefits of a 5-year Term Life Insurance Policy.

  • Death Benefit - Even if the 5-year term insurance plan is one of the short-term investment options for the policyholders, it still offers the death benefit to secure their loved ones’ future financially. With this benefit, the insurance company provides a sum assured to the beneficiaries and loved ones of the policyholders in the event of their unfortunate demise. The sum assured provided in this insurance plan is usually higher in comparison to other traditional insurance plans.
  • Add-Ons and Riders - With a term insurance plan, the policyholders can opt for different add-ons and riders depending upon their medical condition. This enhances the insurance policy coverage and helps policyholders get quality treatment if they suffer from any critical illness such as cancer, strokes, cardiac arrest, organ failure and more. Most insurance companies offer these riders at minimal available cost.
  • Lower Insurance Rates -  5-year term insurance plans come with lower insurance premiums. It all depends upon the age of the applicant. If the applicant is young, healthy and less prone to getting sick, there are best chances that the insurance companies in the UAE will offer lower insurance rates to them.
  • Financial Security - Term insurance plans offer financial security for the loved ones of the policyholders. They can simply opt for the insurance plan and enable their family members to plan a healthy financial future even if they (policyholder) are no longer around to provide for them.

Who Can Buy a 5 Year Term Life Insurance Policy?

The eligibility criteria for buying a 5-year term insurance plan in the UAE may differ for different insurance providers. However, here are the basic requirements that the applicants need to meet before buying one for them.

  • Sole Breadwinners - The insurance plan is the best financial option for single-income families with the sole breadwinner. The earning members of such families can buy this policy for them.
  • Senior Citizens - The applicants not older than 65 years are eligible to buy this insurance plan and get the maximum benefits at lower insurance rates.
  • New Business Owners - New business owners and people who have just started their careers can buy this term insurance plan to get the best out of it. Such policyholders usually spend all their savings on their businesses. They can secure their loved ones financially by buying a term insurance plan.
  • Employees Working in Life-Threatening Conditions - Individuals who work in life-threatening conditions and want to secure their family’s future financially can also choose to buy a 5-year term insurance plan.

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Things to Keep in Mind before Buying a 5 Year Term Life Insurance Policy

Here are a few factors that an applicant must consider before buying a 5-year term insurance policy in the UAE.

  • Premium Amount - The insurance premium is one of the most important factors to consider when buying an insurance policy. Most insurance companies in the UAE offer maximum benefits at lower insurance prices. Depending upon the coverage, the applicants must make sure that they are getting the best deal in terms of the insurance premiums. 
  • Regular Pay-Out Options - The policyholders must check if they are getting the regular pay-out option in their term insurance policy. With this option, the beneficiaries can get a regular monthly, quarterly or yearly pay-out in the event of the policyholder’s demise. This helps them maintain their living standards while meeting all their financial requirements.
  • Claim Settlement Ratio - The applicants must make sure that the chosen insurance company has a good claim settlement ratio. A good claim settlement ratio means that the insurer approves the claims and pays the sum assured to the beneficiaries on time. A claim settlement ratio above 90 percent is considered to be a good claim settlement ratio.
  • Claim Rejection Ratio - The applicant must also check the claim rejection score of the insurance company to find out the number of claims they have rejected in the past few years. Some insurance companies may offer wide insurance coverage at lower insurance rates, but if they are not approving the claims, the whole purpose of buying the insurance plan fails.

How to Get the Best 5-Year Term Life Insurance Rates?

Various factors such as age, location, gender, family history, tobacco use, medical history, present health condition, etc. impact the cost of a 5-year term life insurance plan. These factors help insurers to determine the insurance rates that they can offer. You can also evaluate your insurance premium amount by using online term insurance calculators. 

All you need to do is visit our website, go to the term insurance calculator, enter your details and calculate your premium amount in just a few minutes. In case you need help, you can call our help and support line to speak to our financial experts. They will analyse your financial needs and help you find the best 5-year term plan with excellent features and benefits. 

You may also like this - What Is a 30-Year Term Life Insurance Policy


Now that you know almost everything about a 5-year term insurance plan, it’s time for you to go ahead and buy one for yourself. The best part is that you need not go anywhere to get this done. You can simply apply for the same online in just a few clicks. All you need to do is visit our website, go to the term insurance section and apply for your chosen term insurance plan with great ease.

You can also call us in case you need assistance with finding a suitable term insurance plan. Our financial experts will explain the features and benefits of different insurance plans and even help you through the application process.

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