Group Life Insurance Benefits in UAE

Group life insurance is a type of life coverage in the UAE that provides collective protection to employees or workers under a single policy. Generally, this is arranged by the employer or an organization, providing financial security to employees and their families covering uncertainties, including loss of life and disability. In this article, we will explore the various group life insurance benefits.

Top Benefits of Group Life Insurance in UAE

Here are some of the key group life insurance benefits:

• Easy enrollment process
• Affordable 
• Financially secure your family 
• No medical test 
• Boost employee retention

1- Cost-Efficient Life Coverage

Unlike individual life insurance policies, group life insurance plans are inexpensive. This is because the insurance is bought in bulk by the companies, covering a group of employees. This spreads the cost across many people and makes the insurance affordable.

2- Financial Security for Families

In case of untimely demise, the beneficiaries (usually family members) of the employee get group life insurance death benefits. Usually, it’s a lump sum amount that is paid to the family members, helping them in their tough times. In addition, financial support is also given to the employee in case of loss of any body part (this might be an add-on in several cases).

3- No Medical Tests Required

Regardless of your health, you can obtain group life insurance coverage as there's no requirement for medical tests/screening. Unlike individual life insurance plans, which often require medical screenings and may deny coverage or increase premiums for those with pre-existing health conditions, group life plans provide coverage for employees without any restrictions. But this is not the case in group life insurance, and that’s why it’s accessible for all employees.

4- Easy to Enroll

In the UAE, employees can easily enroll in a group life insurance plan. The enrollment process is very simple and hassle-free, as there are no such questionnaires or exams involved, like individual plans. Typically, this is automatically provided during your onboarding or while joining a company.

5- Boosts Employee Retention

Group life insurance is a part of an employee benefits package that ultimately boosts employee retention and job satisfaction. With this, employers provide a sense of financial security to the employees and their families, making them feel valued and respected. As a result of this, employees start trusting their organization.

Furthermore, by offering such types of coverage, employers not only attract top talents in the industry but also save their recruitment and training costs.

6- Boost Workforce Productivity

This is the other major advantage of group life insurance in the UAE. Employees focus more on their work when they know their lives are insured. As a result, this boosts workforce productivity because employees are no longer concerned about their families in the event of an uncertain situation.

7- Additional Coverages

Group life insurance benefits are not limited, as many providers in the UAE offer additional coverages. This perk allows employees to have their coverage extended and provides full protection. Common additional coverage includes critical illness, permanent or temporary disability, accidental medical costs, and more.

However, this comes under additional benefits and may be different from company to company. For instance, many employers allow employees to choose additional coverage or moderate their basic policy, but at several times the coverages are only decided by the employer.

Things to Keep in Mind While Getting Group Life Insurance

There are several things that you should keep in mind while getting a group life insurance policy in the UAE:

Understand Your Needs:

As an employee, it’s crucial to get the best life coverage, as it not only secures your life but also supports your family in case of your demise. If you are confused about what suits you the best—group life insurance or an individual plan—assess your needs, such as scope of coverage, premiums, dependants coverage, and more. Once you understand what you want, it will be easy for you to choose the right coverage.  

Evaluate the Coverages:

It’s important to evaluate whether the group life insurance policy covers natural death, accidental death, and critical illnesses. As different policies offer different coverages, while enrolling in the policy you must be aware of what type of cover you are getting.  

Insurer Reputation:

For employers and employees, it’s essential to choose an insurer with a proven track record of reliability, financial stability, and prompt claim settlements. For this, you can consider online reviews and ratings to assess their service quality. 

Flexibility and Customization:

Opt for a policy that allows customization based on your workforce’s needs. Several coverages are excluded under a basic plan and require add-ons. Consider plans that add value and appeal to a wide range of employee demographics. 

Claims Process:

Ensure the insurer provides straightforward documentation requirements and quick payouts to beneficiaries during critical times. It’s always good to consider an insurer with a high claim settlement ratio in the UAE.  

Group Size Requirements:

Verify the minimum group size requirement, as some policies may only be available for organizations with a specific number of employees.  

Keep Your Beneficiaries Updated:

If you are enrolled in a group life insurance policy, make sure the details of your beneficiaries are updated. As you know, several life events, such as marriage, divorce, etc., change our relationship. Thus, it’s essential to ensure that the group life insurance death benefits only go to the right person. 

What’s more⁉️

As the saying goes, ‘there are two sides to every coin.’ Similarly, while group life insurance offers numerous benefits, it also comes with a few potential drawbacks. 

Group life insurance advantages and disadvantages are briefed in the table:

How to Buy Group Life Insurance in the UAE?

With Policybazaar.ae, it’s easy to buy group life insurance. Follow these easy steps mentioned below to get the right policy:

• Click here to go to the ‘Business Insurance’ section on our site
• Select ‘Group Life Insurance’
• Enter your details on the lead form and submit
• After submitting your details, you will get a call from our representative in a short period

Frequently Asked Questions