Term Insurance Companies in the UAE Offering Life Insurance for the Self-Employed

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In the uncertain world today, life insurance is crucial for individuals from all segments and sectors. However, before offering life policies, the insurance companies verify the financial status of an individual. When providing insurance plans, the companies invest in individuals and avoid risky investments. A salaried individual is preferred over a self-employed individual because the insurance companies can ensure regular premiums from the former. On the other hand, a self-employed individual may have a fluctuating income, posing a bigger threat to the insurance companies. Additionally, a self-employed individual also requires a larger sum insured to protect his/her family and business, thus making it insufficient for them to go for a normal term insurance plan. 

However, there are several insurance companies in the UAE that offer bespoke term insurance plans for self-employed individuals. The article below details various term insurance companies that offer life insurance to self-employed individuals in the UAE. 

Why Do Self-Employed Individuals Require a Term Insurance Plan?

Similar to any individual, a self-employed individual also needs life insurance to safeguard his family against unforeseen events. However, they don’t enjoy the same perks and benefits as offered to a salaried individual. Therefore, they need to ensure that they have enough benefits compensated from other means. Here are the various reasons why a self-employed individual requires a term insurance plan in the UAE.

  • Lack of Employment Benefits - Employees in the organised sector can avail of numerous benefits such as provident funds, life, and health insurance covers, etc. However, since self-employed individuals are employers to themselves, they need to invest some money towards their financial goals, retirement plans, children’s education, and marriage. So, a term insurance plan becomes crucial for fulfilling these goals. 
  • Life Insurance under Single Premium - To avail of a term insurance plan for a tenure of up to 30 years, you can pay a single or one-time premium. This means your family will be protected from unfortunate events irrespective of business and market performances. 

You can avail yourself of a term life cover of AED 3 million with a premium of about AED 215 per year. Such pricing makes term insurance affordable and a popular choice among self-employed individuals. 

  • The Cost of Business Ownership Transfer - It may happen that, for certain reasons, you are unable to participate actively in the business operation. And you may need to transfer the business owner to the next generation. It may take time for the new generation to pace up with the business activities requiring investment during the process. Additionally, you may need loans and financial obligations to continue the business. If you have acquired loans for expansion and branding, your term life insurance covers such finances. 
  • Financial Support in Case of Terminal Illnesses and Disabilities - Term insurance plans have several other coverages, including the policyholder’s death. Additional benefits include critical and terminal illness cover, disability coverage and more. Since your family and business depend directly on you, such events can be devastating. The best term insurance policy comes with various additional coverages, including terminal illness cover and disability coverage. As a business owner, you need ample security against numerous threats to secure your business as well as your family. If your normal term insurance plan does not include these benefits, consider opting for add-on covers. An add-on cover nominally increases your premium but offers you additional protection as per your requirements. 

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Term Insurance Companies Offering Life Insurance to Self-Employed Individuals in the UAE

Following is the list of term insurance companies in the UAE offering life insurance to self-employed individuals.

Zurich Term Insurance

With its presence in the UAE for the last 30 years, Zurich has become one of the leading multi-line insurance providers. The company offers insurance in various segments such as life, health, property and casualty insurance. Marking an extensive global presence, Zurich insurance company has a network in over 200 countries and territories. Famous term insurance plans from Zurich Term Insurance are as follows:

  • International Term Assurance (ITA) - The amount assured in the ITA remains fixed for the whole tenure of the term insurance. If the policyholder dies during the insurance period, the company pays a lump sum death benefit to the beneficiaries. 
  • International Decreasing Term Assurance - In the IDTA policy, the insurance benefits keep on decreasing with every passing year as per the rate decided by the policyholder. Such term insurance plans are better for loan protection that keeps on decreasing over time. 

Alliance Term Insurance

Alliance Insurance is one of the oldest insurance providers in the UAE. The company’s customer-oriented insurance plans have made it one of the leading insurance companies in the region. It offers a range of insurance products ranging from personal to business term insurance plans. Following are the key term insurance plans from Alliance Term Insurance: 

  • Level Term Insurance Plan - With the level term insurance plan, the policyholder gets a fixed sum insured at a fixed premium cost. The level term plan can go up to a tenure of 30 years depending on the client’s requirements. 
  • Limited Payment Plan - With the limited payment plan, you can choose to pay the insurance premium for a fixed period while enjoying insurance protection for up to 25 years. You can pay your premiums for either 3 or 5 years and avail of the protection for 10, 15, 20 or 25 years. 
  • Convertible Term Insurance Plan - With the Alliance Convertible Term Insurance plans, you can convert your term insurance plan into a whole life insurance plan before the end of the policy tenure. 
  • Executive Term Insurance Plan - Alliance Insurance Company offers a higher coverage amount of USD 250,000 or above, with a flexible tenure between 5 and 30 years. 

MetLife Term Insurance

Metropolitan Life Insurance Company, popularly known as MetLife, is amongst the world leaders in providing life, health and employee insurance and annuities. The company offers comprehensive as well as bespoke term insurance plans in the UAE. The following are the popular term insurance plans from MetLife.

  • 5 Year Renewable Term Insurance Plan - You can convert the renewable term plans into whole life insurance or endowment plans within the first 10 years of acquiring the policy. 
  • Level Term Insurance Plan - With the MetLife level term insurance plan, you need to pay a fixed premium over a tenure of 6 to 25 years. The assured sum also remains fixed for the entire tenure. In case the policyholder dies within the policy tenure, MetLife is liable to pay the lump sum amount to the beneficiaries. 

Salama Term Insurance

Incorporated in the year 1979 with a paid-up capital of AED 1.2 billion, Salama is famous for its sharia-compliant takaful protection plans in the UAE. The company offers a range of takaful insurance products to suit the customer’s needs. The primary term insurance plans from Salama are as follows:

  • Himayati Plus - With the Himayati Plus term insurance plan, you get life security until the age of 70, with up to a 100% guaranteed bonus after the maturity of the plan. Salama Term Insurance offers flexible insurance tenures of 5, 10, and 15 years. 
  • Himaya Plus - With the Himaya Plus plan, you get life insurance protection for up to 25 years. The maximum age for buying this policy is 74 years. It accepts multiple currencies such as AED and USD and comes with a minimum premium payment tenure of 2 years. 

Takaful Emarat Term Insurance

Established in the year 2008, Takaful Emarat is one of the leading Shariah-compliant insurance providers in the UAE. The company comes with a range of Islamic protection plans for individuals and families, businesses, corporates and government bodies. Amongst various insurance plans, the following are the most popular term insurance plans from Takaful Emarat.

  • Fixed Term Insurance Plan - The fixed-term insurance plan offers a fixed assured sum for a flexible tenure of 5 to 25 years. It covers critical illness expenses and disability benefits. The company accepts both AED and USD for the payment of the term plan premiums in the UAE. 
  • Decreasing Term Insurance Plan - With the Takaful Emarat Decreasing Term Insurance plan, you can choose your amortisation rate for determining your decreasing assured sum. The plan covers you for a flexible tenure of 5 to 25 years.

LIC International Term Insurance

The LIC International Term Insurance is an overseas subsidiary of the Life Insurance Corporation of India. The company operates in the Middle East to serve the NRIs residing in the Gulf region. Following is the popular LIC International term insurance plan in the UAE. 

  • Pure Term Assurance (PTA) - Pure Term Assurance offers high insurance benefits for a low insurance premium. You can opt for pure term insurance for a flexible tenure of 5 to 30 years. 

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How to Select the Best Term Insurance for Self-Employed Individuals?

  • Life Cover with In-built Terminal Illness Cover: When selecting a term insurance plan, you need to consider policies that provide protection against numerous life threats and illnesses as well as their affordability.
  • Accidental Disability Cover with Premium Waiver: While purchasing a term plan, you need to consider whether your term plan offers accidental disability coverage or not. If your term insurance does not offer personal accident cover, you can opt for additional covers at low costs. Additionally, with a premium waiver add-on, you can avoid paying insurance premiums or pay them at discounted rates for not making any claims during the preceding year.
  • Flexible Payout Option: During the term insurance application, you need to ensure that you get flexible payout options for the insurance benefits. In your absence, your family may need a fixed income to meet their daily expenses. You can choose the fixed monthly payout option to replace your salary. In case your family requires a lump sum amount, you may have to go for the lump sum payment option. The best term insurance plan in the UAE provides enough flexibility for insurance payouts. 

Other Insurance Options for Self-Employed Individuals in the UAE

Here are a few insurance options for self-employed individuals in the UAE apart from term insurance plans. 

Public Liability Insurance

Public liability insurance is crucial in most free zones of the UAE. The insurance covers the policyholder against third-party claims that may arise due to business operations’ negligence, causing death, injury, property damage, financial losses, etc. Public liability insurance can also be customised as per the business owner’s requirements with several add-on riders. 

Motor Insurance

Self-employed individuals involving the use of vehicles for their business can secure their vehicle fleet with motor insurance. In the UAE, every vehicle owner needs to have third-party liability insurance. However, they can secure the passengers and the drivers with a comprehensive car insurance plan. The policy can be customised with various additional riders such as personal accident cover, disability cover, and emergency medical cover. 

Private Health Insurance 

Health insurance plans are compulsory for UAE nationals/residents and foreigners residing in the UAE. While salaried individuals receive health insurance from their companies, self-employed individuals need to opt for private health insurance. UAE has a large insurance market and numerous insurance providers offering private health insurance to self-employed individuals. Additionally, the insurance benefits are flexible and you can even customise the plan with add-on riders as per your needs and budget. 

Conclusion

Term life insurance plans are one of the most affordable protection plans. When it comes to offering security to the self-employed, the term insurance plan comes with customisable options to provide extensive protection against various threats. As a self-employed individual, you need to protect your business as well as your dependents. Therefore, you need to ensure that you have adequate coverage should the worst happen. There are several term insurance companies offering life insurance to self-employed individuals in the UAE. 

However, to get the best term insurance plan, you need to carry out extensive research and need some professional advice. You can visit the term insurance section at Policybazaar.ae or contact our customer support team to find the best term insurance plan in the UAE.