5-Year Term Plan in UAE | Definition & Key Features

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:

Policy Term

Age

Cover

Payment Frequency

YearlyMonthly

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

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

How Does a 5 Year Life Insurance Policy Work?

The working mechanism is simple —

You buy the policy and choose your coverage amount (sum assured).
Pay premiums for 5 years (based on your chosen frequency).
If you pass away during the term, your family receives the death benefit.
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.

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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

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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:

Notify the insurer immediately about the incident.
Submit the claim form along with necessary documents.
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.

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Frequently Asked Question

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.

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.

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.

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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