An Overview on Term Insurance Maturity Benefits

Term Insurance With Maturity Benefit in the UAE

A term insurance plan with maturity benefit (also called TROP) gives you life cover plus a refund of premiums if you survive the policy term. UAE term plans usually don’t offer maturity benefits, but you can still find similar options like endowment plans, ULIPs, or whole life plans with exit value ...read more

How Do You Get Life Cover Plus a Payout at Maturity?

Many people look for the best term insurance with maturity benefit in the UAE because they want two things: strong family protection and a payout if they outlive the term. While standard UAE term plans don’t provide this, endowment plans and ULIPs do.

Below, we explain what a maturity-benefit term plan means, how it works, who should consider it, and the best alternatives for UAE residents.

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 Term Plan with Maturity Benefit?

A term plan with maturity benefit (TROP) pays your family if something happens to you. But if you survive the policy term, it refunds your premiums. This makes it a protection plan with a built-in savings component.

Example:

Imagine you buy a 20-year term life insurance with maturity benefit, paying AED 1,200 per year.

If you unfortunately pass away in year 10 → Your family receives the full sum assured (say AED 1 million)
If you survive till year 20 → You get back all premiums paid: AED 1,200 × 20 years = AED 24,000 (approx. as some deductions may apply)

It works like a ‘financial protection + forced savings’ plan.

Can I Get Term Life Insurance with Maturity Benefit in the UAE?

Most UAE insurers do NOT offer a term insurance plan with maturity benefit. The policies here follow the global model of ‘pure protection’, which means the insurer only pays if the policyholder passes away during the term.

Why is There No Maturity Payout in Standard UAE Term Plans?

Plans focus on maximum coverage
Premiums stay low
Better savings options available

This is why many people search for ‘term insurance plus maturity benefit’ but do not find UAE-based TROP plans easily.

Why are TROP Plans More Expensive?

TROP premiums are higher because the insurer refunds your money at the end. You pay for both: Life insurance and a savings/refund component. This is why TROP is pricier than standard term plans but preferred by people who don’t want their premiums to ‘go to waste’.

Comparison: Term Insurance vs Term Insurance with Maturity Benefit

Feature	Standard Term Plan	Term Insurance with Maturity Benefit (TROP)
Death Benefit	Yes	Yes
Available in the UAE	Yes	No
Maturity Benefit	No	Yes – premiums refunded
Premiums	Lower	Higher
Savings Component	None	Exists
Best For	Pure protection	Protection + refund

Who Should Consider a Term Insurance Plan with Maturity Benefit?

A term insurance plan with maturity benefit is ideal for people belonging to the following categories —

✔ People who dislike losing money

If you want the best term insurance with a maturity benefit that guarantees money back, TROP is ideal.

✔ Those who want both protection & savings

You get term life coverage and a maturity payout together.

✔ People with long-term commitments

If you’re planning ahead for children’s education or retirement, TROP works like a safety net plus a refund.

Alternatives to Term Life Insurance with Maturity Benefit

If you’re specifically looking for protection plus a payout, here are stronger options available in the UAE —

1. Endowment Plans

Endowment plans combine savings and life insurance. You receive a guaranteed lump sum at maturity or a death payout if you pass away earlier.

2. ULIPs (Unit Linked Insurance Plans)

ULIPs are market-linked plans where —

A part of your premium invests in funds
A part provides life insurance

Your maturity benefit depends on fund performance.

3. Whole Life Plans with Cash Value

Whole life policies build cash value over time. You get lifelong coverage plus a growing savings component that can be withdrawn or borrowed against.

Term Insurance with Exit Value

Some insurers offer an exit value option, mostly within whole life policies. This allows you to stop the plan after a certain number of years and receive a portion of your premiums back.

Example: You buy a 30-year plan but want to exit in year 15 → The insurer returns a partial refund based on their exit chart. This is useful for people who want flexibility and may not keep the policy for decades.

Which Life Plan Should You Choose in the UAE?

To select the plan of your choice, see where you fit better and what your goals are:

Choose a Standard Term Plan if…

You want the highest life cover at the lowest cost
Your priority is pure financial protection

Choose an Endowment or ULIP if…

You want protection + investment + income
You want guaranteed or market-linked maturity returns

Want life cover with guaranteed returns or premium refund?

Compare the best endowment, ULIP, and whole-life plans in minutes on Policybazaar.ae. Our experts help you understand returns, premiums, and benefits, so you choose the right plan with zero confusion.

Key Takeaways

Most UAE insurers publicly state that term plans are pure protection products.
Return-of-premium models are more common in India and select international markets.
Savings-linked products (endowment, ULIP, whole life) remain the primary way to get maturity benefits with life insurance in the UAE.
For pure protection, choose a regular term plan. For protection plus refund, go for savings-based plans like endowment, ULIPs, or whole life plans with cash value.

Frequently Asked Questions

Most UAE term plans do not offer maturity benefits. To receive a payout at the end of the term, you must choose a TROP plan in India (only for NRIs) or a savings-linked insurance product.

Yes. TROP plans cost more because the insurer refunds your premiums at maturity, unlike standard term plans that only offer pure protection.

TROP options are usually not available in the UAE. Many residents choose endowment or ULIP plans instead because they offer both insurance and maturity payouts.

No single ‘best plan’ exists. The right choice depends on your budget, income goals, and need for guaranteed vs. market-linked returns.

Endowment plans, ULIPs, and whole-life plans with cash value are the most common alternatives for people who want life cover plus a maturity benefit.

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