# How to Take Loan Against Life Insurance Policy in UAE? **Published:** 2025-09-15T10:41:30.644Z **Updated:** 2026-08-11T16:04:51.028Z **Author:** Aashima Mongia **Reviewer:** Atul Kathuria **Original Url:** https://www.policybazaar.ae/how-can-you-get-loans-against-your-life-insurance-plan-liart/ **We are Rated:** 4.7/5 **Review Count:** 44,602 [Reviews](https://maps.app.goo.gl/Ry9H7NLgFAGso8gZ7) **Insurance Partners:** 35+ **Trusted Customers:** 2 Million+ **Policies Sold:** 1 Million+ Many people wonder if they can take out a loan against life insurance policy in UAE. The concept of loan on a life policy is common in some countries where insurers allow policyholders to borrow against the cash value of their plans. However, in the UAE, the situation is slightly different. Here, the availability of a loan against insurance policy depends on the type of plan you hold. The rules differ for term life insurance and whole of life policies. ## Loan Against Term Life Insurance for Mortgage Protection If you are taking a mortgage loan in the UAE, most banks make it mandatory to purchase a [term life insurance plan](https://www.policybazaar.ae/term-insurance/). This setup is also known as life insurance mortgage protection. * The purpose is to ensure that if the borrower passes away during the loan tenure, the outstanding mortgage is fully repaid by the insurer. * Technically, this is not a loan on policy of life insurance, but rather a loan protection insurance arrangement tied to your mortgage. * It is widely available and considered a standard requirement by UAE banks. ### Key Features of Term Life + Mortgage * Affordable premiums compared to whole of life insurance * Coverage directly linked to the mortgage balance * Peace of mind for both borrower and bank, ensuring the debt is not passed on to family ## Whole of Life Policy in UAE – Fund Value but No Loan Facility Many expats and residents invest in a [whole of life policy in UAE](https://www.policybazaar.ae/life-insurance/whole-life-insurance/) because it combines lifelong protection with a savings component. Over time, these policies build a fund value or cash value. However, when it comes to how to borrow against life insurance in the UAE: * You cannot take a loan against the fund value of your whole of life policy * Insurers here don’t have a facility for direct loan against life policy * If you need access to funds, you can only withdraw partially (if allowed) or surrender the policy to get its accumulated value In short, while the whole of life insurance UAE helps with wealth building and protection, it is not eligible for loan on life policy in the UAE market. ### Key Features of Whole of Life Plans in UAE * Lifelong coverage * Investment and savings component with potential returns * No loan against policy facility in the UAE ## Quick Comparison: Term Life vs Whole of Life in UAE | Feature | Term Life Insurance (Mortgage Protection) | Whole of Life Policy UAE | | --- | --- | --- | | Loan Facility | Not available (used for loan protection) | Not available | | Purpose | Protect mortgage liability | Lifelong protection + savings | | Fund Value | No fund value | Fund value grows over time | | Access to Money | Not applicable | Partial withdrawals or surrender | ## Final Word – Can You Take a Loan Against Life Insurance in UAE? * Term Life Insurance → Functions as mortgage protection, but does not allow you to get a loan against insurance policy * Whole of Life Policy → Has a savings and fund value element, but still does not allow a loan against [life insurance policy](https://www.policybazaar.ae/life-insurance/) in the UAE If your main goal is financing, you need to consider personal loans, home loans, or bank financing products instead of looking for a loan on life policy. ## FAQs on Loan Against Life Insurance in UAE ### Can I borrow against my life insurance in UAE? No, you cannot borrow against life insurance policies in UAE. Whole of life plans may have a fund value, but insurers do not offer loans against them. ### Is life coverage required for mortgage in UAE? Yes. Banks in the UAE typically make it mandatory to take a term life plan as part of mortgage protection. This ensures the home loan is repaid if the borrower passes away. ### What is the difference between term life insurance and whole of life policy in UAE? Term Life Insurance → Pure protection, usually linked with mortgages. Whole of Life Policy UAE → Lifelong coverage + savings component with fund value, but no loan facility. ### Can I get cash from my life insurance policy in UAE? You can access funds from a whole of life policy by surrendering the plan or making partial withdrawals (if allowed). However, there is no dedicated loan against policy option. ### What is life insurance mortgage protection in UAE? It’s a term life plan that protects your bank loan or mortgage. 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