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What is Term Insurance? – Best Term Insurance Plans in the UAE 2021

By PolicyBazaar
  | Published: 15 June 2021 | Last Updated On: 21 June 2021

Buy a term plan and secure your family

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AED 100,000 cover starting at just AED 7/month

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Term Insurance is the simplest and most affordable type of life insurance meant to safeguard your family’s future in case of any untoward happening. Most term insurances in the UAE offer valuable benefits and features to help your family deal with a financial crisis if the breadwinner of the family passes away. 

Term insurance plans in the UAE are available at affordable rates and provide a wide range of maturity or survival benefits. With just a little bit of money set aside every month, you can easily secure your family’s future. 

The primary objective of buying a term insurance plan in the UAE is to make sure that the concerned family must get adequate income in case of an untimely death of the provider.

Let’s take a look at why you must opt for term insurance plan in the UAE along with its benefits and features.  

What is Term Insurance?

Term insurance is the simplest form of life insurance that offers decent coverage in exchange of affordable premiums. With term insurance, the lump-sum payout is provided to the nominee if the insured member passes away within the policy term. This amount can thus be used by the bereaved family to continue their expenses on essentials, tuition fee, for paying out EMIs, etc.

If you’ve been planning to buy term insurance plan then you can get your hands on one for as low as AED 7 per month. In the UAE, term insurance plans also provide extended coverage with simple add-ons like critical illness, terminal illness, disability, etc., for enhanced coverage. 

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Types of Term Insurance in the UAE

  • Basic Term Insurance Plan
  • Level Term Insurance Plan
  • Annual Renewable Term Insurance Plan
  • Group Term Insurance Plan
  • Group Term Insurance Plan

Basic Term Insurance Plan

The basic term insurance plan offers high cover for affordable premiums. In case of the policyholder’s unfortunate death, the nominee gets the lump sum payout depending upon the amount you choose at the time of purchasing a policy.

Level Term Insurance Plan

In Level Term Insurance Plans, the premium remains the same throughout the plan. These plans offer a premium guarantee with an excellent set of benefits. Here are the categories of Level term Insurance plans.

  • Single Pay: In this type of term insurance, the insurance company collects the whole amount of premium at the start of the policy.
  • Regular Pay: With Regular Pay, the insurance companies allow the policyholders to pay their premiums throughout the policy.
  • Return of Premium: In Return of Premium type, the policyholders get a part of their already paid premium back at the end of the policy period. 
  • Limited Pay: In Limited Pay term insurance, the policyholders need to pay the premium for a limited period while the term is valid for a longer time. For instance, if you have opted for a 20-year limited pay term insurance policy, your premium payment term will be ten years. It means your policy remains for 20 years, but you will pay the premium only for ten years. 

Annual Renewable Term Insurance Plan

In this type of term insurance plan, the premium amount changes after a fixed time. In the initial years, the Annual Renewable Term Insurance Plans are mostly cheaper than Level Term Insurance Plans. However, they can turn out to be expensive when taken for a longer duration.

Group Term Insurance Plan

Group Term Insurance Plans in the UAE offer multiple insurance benefits for a group of all the members. These types of term insurance plans are best for companies that plan to provide insurance to their employees.

Major Reasons to Buy Term Insurance in the UAE

  • Lower Premiums
  • Fixed Premiums
  • Easy to Understand
  • Customizable Add-Ons
  • Ideal for long-Term Plans
  • Secured Future

Lower Premiums

Term insurance plans offer a lower premium amount in comparison to other insurance plans in the UAE. The term insurance prices are even affordable for people with common budget restrictions.

Fixed Premiums

The best part about term insurance plans is that they offer a fixed premium amount. Therefore, it helps buyers to stay prepared for paying the installments throughout the insurance plan.

Easy to Understand

Term insurance in UAE is easy to understand and comes with no complications. In addition, these insurance plans provide the guaranteed cover throughout the term of the insurance plan.

Customizable Add-Ons

Most insurance companies in the UAE allow buyers to add riders to their term insurance at the time of purchase. These riders include permanent total disability, critical illness benefit, family income benefit, accidental death benefit, and many others.

Ideal for long-Term Plans

Term Insurance plans in the UAE help people deal with their long-term financial goals. And in addition, it helps them deal with their liabilities like supporting their dependents or aging parents, children’s higher education, protecting business continuity, etc.

Secured Future

Term Insurance in the UAE makes policyholders capable enough to deal with their financial challenges. It helps them raise their funds and fulfill their upcoming financial needs. Moreover, term insurance Plans help your family even when you are not around.

Best Term Insurance in UAE 2021

Here is a list of the best term insurance plans in UAE.

MetLife - Live Life

MetLife is one of the biggest insurance providers in the UAE. Live Life Term Insurance Plan of MetLife offers a wide range of benefits and customizable riders to help meet the expectations of policyholders. The Live Life term insurance plan is best for people looking for comprehensive term insurance.

The term insurance provides live life plans with Single, Regular, and Limited premium payment options. 

The plan also provides different riders to be added to the term insurance. One of these best riders in the term insurance plan is called Forever Plan.

With this plan, the policyholders get a medical discount card and a free second medical opinion. It also provides the policyholders with a lifetime monthly income if they go permanently partial or fully disabled due to some sickness or an accident. The minimum guaranteed period for this offer is of 20 years.

Friends Provident International - International Protector Middle East (IPME)

International Protector Middle East (IPME) is an award-winning term insurance plan offered by Friends Provident International. It provides three insurance cover options for the policyholders.

  • Earlier Critical Illness or Life Cover
  • Stand-Alone Life Cover
  • Stand-Alone Critical Illness Cover

The term insurance plan provides the policyholders with a free second medical opinion service. The insurance premiums for these plans are affordable. The insurance plan offers a Limited and Regular premium payment method.

Oman Term Insurance – Lifeguard

Lifeguard is an excellent term insurance plan for UAE residents of age between one to eighty years. In addition, the insurance plan allows policyholders to choose different decreasing term options. The best part about this plan is it doesn’t differentiate the insurance premium amount for smokers and non-smokers. 

Here is the list of riders in the Lifeguard term insurance.

  • Hospital indemnity benefit
  • Permanent total disability
  • Accidental death benefit
  • Critical illnesses covering forty illnesses
  • Waiver of premium on permanent disability

The term insurance plan offers Regular and Single Payment methods.

Salama - Hemaya Plus 

Hemaya Plus is a functional Family Takaful Term Plan provided by Salama. The maximum age of expiry for Salama term insurance plan is a hundred years. 

Here are the benefits that the term insurance plan offers.

  • Premium waiver for accidental partial or total disability
  • Family Income Benefit
  • Contribute based on Single or Regular payment method. The payments could be yearly/half-yearly/quarterly/monthly depending upon the user preferences.

The term insurance plan is best for residents looking for a Sharia-compliant protection plan.

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Final Thoughts

It is a nice practice to compare various term insurance in the UAE before you buy one to secure your family’s future. Go through the features and benefits provided by different insurers and shortlist a few term insurance plans to help find the best fit for your needs and budget.