Top Hidden Factors That Determine Your Life Insurance Rate in UAE

By Pardeep Garg
  | Published: 01 September 2021

Buy a term plan and secure your family

Average Rating / 5 (ratings ) | 156 Views
Term Insurance in UAE
Secure your family’s future Flat 35% OFF on Term Insurance

T&C Apply

Select Gender
  • Male
  • Female

Life Insurance policies make an important part of a sound financial plan. As a responsible earner, it’s our innate desire to take care of our families and ensure a decent lifestyle to them even when we’re not here. Life insurance plans in the UAE can be term or whole life insurances, including monthly/annual premium payments. The insurer typically decides the charges (premium) on life insurance factors like age, gender coverage amount, etc. However, these are not the only factors that contribute to determining life insurance rates. Your lifestyle, family history, hobbies & habits, occupational risks are some other factors that may raise the premium of your insurance plans. A vigilant buyer can receive the benefits of comprehensive coverage according to his requirement without any extra charges. Also, the insurance plans give generalized terms & conditions focusing on the masses but they have custom tailored plans for each individual that are designed on the basis of their lifestyle habits. The article below has a list of hidden factors that contribute to determining your life insurance premiums.  

Basic Factors that determine your Life Insurance Rate in UAE

A life insurance policy covers you against various unforeseen circumstances. The insurance company is liable to pay your beneficiaries should any untimely event happens. That is precisely why you must develop a good understanding of the factors that can influence your premiums negatively. Here is a list:  

  • Age - The policyholder’s age is one of the primary factors for deciding the premium rates. Younger people tend to pay lesser premiums than older ones. Insurance companies go by the statistics to estimate life expectancy and define the life insurance rate. Hence starting early with a life insurance plan in UAE can get you lower premiums than doing it late. 
  • Gender - An individual’s gender is also an important factor. Females in UAE have a longer life expectancy at birth of 79.31 which is higher than the males (77.29 at birth) and a longer life poses a lesser threat to the insurer. This makes female policyholders pay a lower premium than males in general. 
  • Type of Life Insurance Coverage - A life insurance with comprehensive coverage can be costlier than basic term insurance. Moreover, additional riders in the policy can also increase the plan’s premium rate. Individual needs to go through various cover details and omit the threats they are not likely to acquire thereby reducing the life insurance rate. 
  • Life Insurance Coverage Amount - The coverage amount is one of the direct factors that constitute to premium rate. A life cover of AED 600,000 in the UAE will have a lower premium than a life insurance policy with a coverage of AED 3 million. The customers need to consider their income and the coverage amount they require before buying an insurance plan. 
  • Tobacco Consumption – Smokers tend to pay a greater premium compared to non-smokers. In addition, the policyholders can be revoked of critical illness cover arising due to smoking habits. The insurance company may also ask for a medical check-up in certain cases. 
  • Life Insurance Tenure - The term of life insurance in the UAE also contributes to the insurance premium rates. A short duration term life insurance policy can be a cheaper option than whole life insurance which is one of the costliest in the UAE.  

The factors listed above can give you a rough idea about your premium rate, however, it still would be inaccurate and other numerous factors are also considered. 

discount offers - Policybazaar uae

Other Important Factors that Can Alter Your Life Insurance Premium Rates in UAE  

There are various, case specific factors that increase the policy rates. To get an accurate quote, the insurance provider needs to dig deeper into the family history, driving habits and criminal records including occupational risks and activities. An insurer calculates the risks statically before determining the life insurance rates based on the below-mentioned criteria.  

  • Family History - The insurance provider considers the family history of diseases and the person’s susceptibility towards them. Issues like diabetes, cardiovascular diseases and cancer from the immediate family members can considerably increase the insurance rates. 
  • Occupation and Activity - Insurance companies may also take your occupation into account before determining the premium rates. A risky job like mine working, fishing or logging, etc can increase your life insurance premium. Other life insurance factors are your hobbies and activities, adventure sports involving life risk can raise your insurance premium. 
  • Criminal and Driving Records - An insurer may also verify your criminal records. The criminal activity impacts the premium rates and can also revoke your life insurance altogether. However, minor infractions can be overseen. Driving records might not get you a raise in the insurance rates but can make your insurance application a tough ride.

A Few Lesser known Life Insurance Factors That Determine Your Premium Rates      

Certain life insurance factors like health, medical prescriptions, and bodily build are not widely known. However, they still impact the premium rates. 

  • Body Mass Index - The insurance provider has body measurement charts for both males and females with acceptable ranges. A non-average body mass index can also prohibit you from getting the best rates. 
  • Medical Prescriptions - Before deciding your final quote, the insurer may investigate your prescription history and then determine the life insurance rates accordingly. 
  • Over All Health Condition - The insurance provider may need to know about the finer of your health including hypertension status, anxiety issues, obesity, issues related to sleep apnea, etc, before giving you a precise life insurance rate. Usually, the insurance company requires your last 10 years of health condition to determine exactly how much premium you need to pay.

At this point, you can get an almost clear insurance premium rate, however, the company may still ask for a physical examination including blood pressure, blood test, height, and weight measurement, etc. These factors alter your overall health status and can increase your premium rates too. 

An individual will finally know the exact quotes after the company’s underwriters have considered all the factors. 

discount offers - Policybazaar uae

Conclusion

Buying a life insurance plan in the UAE can be a little hectic and tricky. It may appear to be a drag with a lot of criteria and questions. However, the more accurate information you provide the better coverage and premium rates you can receive. It’s important to be a vigilant customer and follow all the fine details that determine your life insurance rates. 

Are you still confused? You can always reach out to Policybazaar customer support to get all your insurance-related queries addressed conveniently and immediately.