Best Life Insurance Policies UAE 2024 | Compare, Buy & Save Online

What is Life Insurance in the UAE?

Life insurance is a legally binding agreement between an individual who holds the policy and the insurer. In this arrangement, the policyholder makes payments, known as premiums. In return, the insurer provides a specified sum of money if the policyholder passes away or after a predefined period.

Let’s assume that a person named Arnold got insurance for life. Here’s how his plan looks like —

Sum assured: AED 1 million
Premium: AED 700 per year*
Policy tenure: 15 years

Unlike a standard term plan, this policy has an investment component too! So if Arnold dies after 10 years, his family will get AED 1 million. They can use this amount to secure their financial stability, cover daily expenses, and meet long term goals.

However, in case he is alive at the end of the tenure, he will get a sum — this can be either lump sum or in regular installments.

Important: Many life cover plans come with ‘maturity benefits’. This refers to the sum that the insured gets at the end of the policy term.

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Our mission is to help you protect your family's well-being with affordable life insurance. We strive to make your experience hassle-free to the greatest extent possible, whether you are purchasing a policy or making a claim. Our dedicated team is here to help you find the best plan for your needs and ensure you get all the necessary assistance with claims, documentation, and more.

Joseph Terrence Business Head - Term Life Insurance

Table of Content

What is Life Insurance in the UAE?
How Does Life Insurance Work in UAE?
How to Buy Life Insurance from Policybazaar.ae
How Does Life Insurance Protect Your Family?
What are the Main Types of Life Insurance?
Benefits of Buying Life Insurance from Policybazaar.ae
What is the Difference Between Life Insurance and Term Insurance?
Which Factors Affect Life Insurance Premiums?
Eligibility Criteria to Buy a Life Insurance in UAE
Documents to Apply for Life Insurance in UAE
What are the Additional Add-Ons Available with Life Insurance?
Life Insurance Policies - Frequently Asked Questions

How Does Life Insurance Work in UAE?

A life insurance policy in UAE serves a dual purpose. Such a plan not only delivers life coverage for financial support but also facilitates the achievement of various financial goals — children's education, funding a wedding, purchasing property, and securing a steady income post-retirement. While we looked at the example above, here’s a quick explanation of how life cover functions in the UAE —

Premium Payment - The policyholder pays premiums as per the fixed frequency. This could be on a monthly or annual basis.

Life Coverage - In case of the death of the insured in the policy tenure, the insurer will provide a predetermined sum — the sum assured — to the chosen beneficiary. This sum ensures the financial well-being of the family in the insured’s absence.

Maturity Benefits - If the insured survives until the end of the life policy term, a sum, known as the maturity benefit, is given to the policyholder. However, this depends on the specific nature of the policy, as not all Dubai life insurance plans offer a maturity benefit.

Life Insurance and Wealth Creation
Two major types of life insurance invest a portion of the premium that you pay into market-linked commodities — Unit Linked Investment Plans (ULIPs) and Endowment Plans. Here, a part of the premium is invested in market-linked funds —- the remaining goes towards the life insurance coverage. While ULIP premiums are invested in high-risk market commodities, premiums of Endowment Plans are invested in low-risk commodities. However, keep in mind that you, as a policyholder, can control the funds in the investment portfolio. Thus, with life insurance plans, you can protect your family and also create wealth. Note that the amount invested is returned in the form of a bonus payout at the time of policy maturity.

Life Insurance and Wealth Creation

Two major types of life insurance invest a portion of the premium that you pay into market-linked commodities — Unit Linked Investment Plans (ULIPs) and Endowment Plans.

Here, a part of the premium is invested in market-linked funds —- the remaining goes towards the life insurance coverage.

While ULIP premiums are invested in high-risk market commodities, premiums of Endowment Plans are invested in low-risk commodities. However, keep in mind that you, as a policyholder, can control the funds in the investment portfolio.

Thus, with life insurance plans, you can protect your family and also create wealth. Note that the amount invested is returned in the form of a bonus payout at the time of policy maturity.

What is the Main Purpose of Life Insurance in UAE?

High Coverage Amount

In the UAE, you can get coverage for up to AED 1 million, starting at premiums of just AED 59* per month!

Ensures Family’s Financial Security

Even in unfortunate circumstances, your family can continue their lifestyle without draining their savings.

Settling Debts and Final Expenses

With life insurance Dubai, your family won’t need to shoulder the financial burden of any pending debts or final expenses like funeral costs. Meeting Long Term Goals

Meeting Long Term Goals

Even while facing such unfortunate scenarios, life insurance UAE ensures that your family’s major life goals are met. This can be children’s education, sustaining your business, and more.

Investment Opportunities

Many Dubai life insurance policies include cash value. This lets you get not only maturity benefits (if you’re alive at the end of the policy tenure) but also borrowing options against the policy. However, keep in mind that these loans must be repaid on time just like standard loans.

Crucial Support Against Critical Illness

Insurance for life isn't solely about protection after death — it can also help if you face a serious illness.

Wealth Creation

If you go for a plan like ULIP or an Endowment plan, you can easily generate income using your life insurance policy. ULIPs invest a part of your premium in market-linked commodities for assured returns. Endowment plans, meanwhile, also have the potential for saving and wealth generation.

How to Buy Life Insurance from Policybazaar.ae

With Policybazaar.ae, getting the best life policy is just a matter of a few clicks. Here’s how you can get the best life insurance in UAE in 5 simple steps:

Go to Policybazaar.ae and select life insurance from the topmost bar.

Fill in your basic details like name, age, phone number, etc. in the form on the right.

Click on 'View Quotes' to see the most relevant term insurance quotes.

Compare and select the one that suits you the best.

Click on apply and follow the on-screen instructions.

When you buy life insurance online via Policybazaar.ae, you get an additional advantage of 24x7 expert assistance to help you wherever you get stuck. Alternatively, you can visit your selected provider’s nearby office and submit your application in person.

Who Needs Life Insurance Dubai, UAE?

Employed Individuals
Married Couples
Business Owners
Retirees
People with Children
Housewives

Full-time employees can buy affordable life insurance to secure financial protection for their beneficiaries if they pass away during the policy term.

Newlyweds can opt for a joint life insurance plan to secure their spouse’s financial future in case one partner dies.

Self-employed individuals can use life plans to ensure that business loans are covered so their loved ones aren’t burdened with debt if they pass away.

Those who buy life insurance during their working years can get a steady income during retirement when the policy matures

Life plans ensure that children’s dreams are fulfilled. These plans provide financial support as a death or maturity benefit.

They can use their husband’s income proof to get life insurance, securing their family’s financial future in case of their untimely demise.

How Does Life Insurance Protect Your Family?

Life insurance offers a life cover that is paid out in the form of a death benefit if the life assured passes away during the policy term. However, in case the life assured outlives the policy tenure, they are paid a maturity benefit (except in the case of term insurance).

Additionally, some life plans also offer cash value. All these benefits allow the family of the life assured to lead a decent life if there is a loss of regular income — whether through the death of the life assured or due to retirement or total and permanent disability.

In the case of life insurance types like ULIPs and endowment plans, a part of the premium is directed towards investments in market-linked and non-participating commodities. The dividend earned can help the life assured’s family members lead a normal life and generate wealth.

With most life insurance plans, the life assured can withdraw cash for emergencies if required.

What are the Main Types of Life Insurance?

Each life policy offers unique features and benefits that cater to different financial goals and needs. Here are the 5 key features of the main types of life covers in UAE -

Term Insurance Plans

Provide death benefit if the policyholder passes away within the policy term
Cost-effective and independent of market fluctuations
Offer financial protection for the policyholder's family in case of the policyholder's untimely death
Don’t offer any maturity benefits
Coverage ends if the policyholder outlives the policy term

Unit Linked Insurance Plans (ULIPs):

Meld insurance and investment into a single plan
Part of the premium goes towards life cover, while the rest is invested based on the policyholder's risk tolerance
Policyholders receive the fund value as a maturity benefit if they survive the policy term
Investments can fluctuate based on market conditions
Provide both death and maturity benefits

Endowment Insurance Plans

Combine life coverage with a savings element
If the policyholder outlives the policy term, they receive the sum assured along with any bonuses
In case of the policyholder's death, beneficiaries receive the sum assured
Generally yield lower returns compared to other investment options
Provide both death and maturity benefits

Money Back Insurance Plans

Offer periodic pay-outs of the sum assured at regular intervals
If the policyholder survives the policy term, they receive the remaining sum assured plus any bonuses
In case of the policyholder's death during the term, beneficiaries receive the full sum assured
Provide liquidity during the policy term
Offer both death and maturity benefits

Whole Life Insurance Plans

Provide lifelong coverage, typically up to 99 years
Guarantee a death benefit to beneficiaries, regardless of when the policyholder passes away
May include a cash value component that can be borrowed against or withdrawn during the policyholder's lifetime
Generally more expensive than term insurance
Offer both death and cash value benefits

Group Life Insurance

Covers a group of people under one master policy, usually provided by an employer
Coverage continues as long as the individual remains part of the group
In case a member dies while part of the group, their beneficiaries receive a payout
Typically more affordable than individual life insurance
Does not offer any cash value or maturity benefitsa

Benefits of Buying Life Insurance from Policybazaar.ae

When you apply for life insurance UAE through Policybazaar.ae, you get to enjoy many benefits —

Best Life Insurance in UAE at Affordable Rates: With monthly premiums of just AED 50*, you can get a cover of up to AED 1 million.
Multiple Options in One Place: Get the top plans for insurance for life from multiple insurance providers in one place.
Transparency: Get all the key details about life policies — benefits, exclusions, T&Cs, premiums, and more.
Easy Comparison: Compare the most relevant life insurance quotes in just a few clicks.
Personalised Assistance: Have any queries or issues? Our expert team is ready to help you throughout the application process for a smooth journey.
Save Time and Cost: Instead of going out or checking multiple sites, you can search, compare, and buy life insurance UAE from the comfort of your home! Additionally, you can find cost-effective plans that meet your requireme
Returns on Investments - Many life insurance plans link a part of your premium towards unit-linked assets. This helps you earn high returns while covering your life.

*T&Cs apply

What is the Difference Between Life Insurance and Term Insurance?

Check out the key differences between life insurance and term insurance in the UAE below —

Parameter	Life Insurance	Term Insurance
Death Benefits	Yes	Yes
Cash Value	Yes — can be fixed or grow over time	No
Policy Period	Usually the entire life or up to the age of 100 years	Usually up to 30-40 years
Premium	Higher due to investment component	Lower
Maturity Benefits	As per the policy	None

Know More: Difference between Term Insurance and Life Insurance

Which Factors Affect Life Insurance Premiums?

Here is an overview of the factors that affect cost of life insurance in the UAE —

Factors	Affects
Age	Younger individuals generally enjoy a lower life insurance Dubai cost as they are considered less risky in terms of major health issues or mortality.
Lifestyle Habits	If you regularly smoke or take tobacco or alcohol, it can lead to higher life insurance policy premiums. This is because these habits can increase the risk of health complications, which increases the risk of death.
Medical Profile and History	If you’ve a history of serious illnesses — heart disease, cancer, and more — it can significantly increase your life plan premiums as they indicate a higher risk profile.
Policy Term	Longer policy terms typically result in higher UAE life insurance premiums. This is because the coverage is provided for a longer tenure, which increases the chances of payout for the insurer.
Sum Assured	The higher the life cover you choose, the higher your premium for life insurance policy UAE.

Eligibility Criteria to Buy a Life Insurance in UAE

The criteria required for purchasing a life policy can vary among insurance companies. Still, there are common guidelines that are generally applicable as mentioned below -

The potential policyholder should fall within the age bracket of 18 to 75 years to be eligible for a life cover policy.
It's necessary for the applicant to demonstrate a stable and reliable stream of income.
The individual applying for the plan should be a resident of the UAE and possess all the requisite documentation.

Documents to Apply for Life Insurance in UAE

To apply for life insurance in Dubai or any other Emirate, you must provide the following details —

Emirates ID
Passport or UAE residence visa (for expats)
Medical details

Note that the documentation requirements can be different for each insurance provider. Check the requirements before applying for Dubai life insurance.

What are the Payout Options for Life Insurance Dubai, UAE?

Regular Payments

Beneficiaries get a certain portion of the sum assured periodically — either monthly or annually — until the whole sum is exhausted. Such payout for life insurance UAE can provide a income for your family.

Lump Sum Payment

As the name suggests, beneficiaries get all death benefits, including any bonuses, in one go. This option is useful if you’ve taken any large loans.

Combination of Lump Sum and Regular Payments

Here, the beneficiary of your life insurance policy UAE gets a part of the death benefit and any bonuses as an upfront lump sum. The remaining is given in regular payments (monthly or yearly) for a set duration. With this mode, you can ensure immediate financial support via lump sum, all while also ensuring a steady income over time.

What are the Additional Add-Ons Available with Life Insurance?

Riders are additional features that can be added to life cover packages to customise coverage as per your specific needs. Some of the common riders of life plans in the UAE include:

Accidental Death Benefit Rider

A common rider with life insurance cover, it provides additional financial coverage in the event of the insured's accidental death.
If the insured dies due to an accident during the rider's term, the rider sum assured is paid out to the policyholder's family as a lump sum.
The benefit is in addition to the sum assured of the base UAE life policy.

Accidental Disability Rider

The accidental disability rider offers financial support if the policyholder becomes permanently partially or totally disabled due to an accident.
A percentage of the rider sum assured is paid out for treatment and daily sustenance.
Payment is determined based on the extent of the disability and insurer's guidelines.

Critical Illness Rider

This rider covers a range of critical illnesses to provide financial protection in case the policyholder is diagnosed with one.
Upon diagnosis, the policyholder and their family receive a lump sum.
The lump sum from this rider helps one cover their treatment as well as day-to-day expenses.

Waiver of Premium Rider

This rider waives future premium payments of a life insurance policy in UAE if the policyholder suffers from a critical illness or becomes totally and permanently disabled due to an accident.
It ensures the continuity of the base life coverage even if premiums are not paid.
This keeps the policyholder's family financially secure with life cover.

Life Insurance Policies - Frequently Asked Questions

What is Life Insurance in the UAE?

Life insurance is a contract between the insurance provider and policyholder, in which the insurer provides financial security to the dependent family members of the policyholder in exchange for a premium.