Life Insurance Prices for Expatriates and Emiratis

If you are an expat it is very important for you to get yourself a suitable insurance plan in the UAE. The healthcare system in the country is quite proficient and therefore expensive. Regardless of your status i.e. bachelor or a family person, it is vital that you never ignore the importance of the right insurance products.

 When it comes to getting the right insurance products the first thing that crosses our mind is the insurance price. In order to avail services from the insurance provider, the insured party needs to pay a fee in the form of a premium. The payable premium of different insurance premiums varies on the basis of different factors. Some of the important factors are the age of the applicant, health status, employment, annual income, and nationality.

You must be wondering; how does nationality affects the life insurance price in UAE. Since the population of UAE consists of a high percentage of expatriates and the insurance market is diverse, there is a disparity in the life insurance based on the nationality of the applicant. Typically, companies that are native to the UAE offer tailored and less expensive plans to Emiratis in comparison to UAE nationals.

Expat Insurance

The Emirati insurance market consists of a wide range of insurance products available for both UAE nationals as well as expatriates. The government of the UAE is striving to structure a well-versed economic and financial system. An important point to be kept into consideration while understanding expat insurance products is that there has been a sudden rise in the total number of foreign-owned insurance providers within the past 5 years.

The expansion of foreign-owned insurance providers in the UAE occurred due to a rise in the demand for expat insurance products. With the rise in the number of foreign-owned insurance providers in the UAE, life insurance prices started to fell gradually.

Keeping the needs of an expatriate in the center, life insurance products can be classified into two categories-

• Term insurance
• Whole life insurance

The purpose and the utility of both the life insurance products differ extensively but they still fall under the same umbrella of life insurance. Term insurance plans are considered as the most basic form of insurance that is mainly designed and developed in order to offer pure risk protection. 

The primary objective of the term insurance plan is to provide financial cushioning to your loved ones in case of any event that leads to disability or demise of the policyholder. However, these plans are valid only for a specific period known as the term of the policy which can be chosen by the insurance seeker based on their convenience and needs. When it comes to the life insurance price, term insurance is the most affordable plan not just in the UAE but across the entire globe. There is no maturity benefit associated with term insurance plans in the UAE, and the claim is made only if the policyholder passes away within the term of the policy.

The second type of life insurance that is available for expatriates in the UAE are the whole of life insurance plans. In terms of life insurance prices, these plans are expensive when compared to term insurance. The whole of life policies provide coverage for an indefinite period and therefore are considered to be a guaranteed payout. The whole of life insurance plans ensures that your family receives a sum assured after you are not around to take care of their needs.

Your choice of life insurance should be not be entirely centered on life insurance and as an aware consumer, you should lay equal emphasis over factors like the sum assured, add on riders, the term of the policy, claim settlement ratio, real-time reviews of the provider, etc.

Insurance for UAE Nationals

As mentioned earlier, the total population of the UAE is composed of a high number of expatriates and the number of people that are native to the UAE is just 11%. However, apart from foreign-owned insurance providers, the composition of insurance providers that belong to the UAE is quite higher.

The insurance need for expatriates and UAE nationals differ quite a lot from each due to various economic and societal factors. For instance, the majority of the Emiratis are either involved in some sort of business or oil industry on the other majority of the expatriates that move to the UAE have jobs. The products remain the same i.e. term insurance and the whole of life but certain parameters tend to change due to varying needs and budgets of the buyers.

Life Insurance Price for Expats vs. UAE Nationals

Considering the difference in needs and the number of insurance providers that belong to the UAE there is a disparity in the life insurance prices in UAE. Typically, UAE nationals tend to get lower life insurance prices when compared to expatriates when purchased from native providers of the UAE.

However, when it comes foreign-based provides or international insurance providers there is not a huge difference in the life insurance prices for both expats and UAE nationals. The price variance is a result of various factors that include geographical economics, population composition, and the number of insurance seekers in a given jurisdiction.

In a Nutshell

With this thread we hope, you have a clearer picture of the life insurance prices and reasons behind why they tend to vary for expats and UAE nationals. No matter if you are an expatriate or a UAE national it is extremely crucial to understand the importance and vitality of life insurance in one’s life.

With the correct life insurance in place, you can not safeguard the future of your family, but you can gift yourself the greatest gift of lifetime ‘peace of mind’.