Keeping the family happy and provided for is something that all the breadwinners dream of. To secure a family’s future, you need to plan for uncertainties in advance and life insurance plans are the best tools for doing so. These plans are meant to secure your loved ones’ financial future in case of a mishap. With UAE being one of the biggest insurance markets in the MENAT region, you can easily find various life protection plans that are in alignment with your financial needs.
Along with basic protection plans, you can choose investment and savings-oriented plans that generate cash value over time and provide you with additional financial benefits. The article below provides details about various life covers, their features, benefits, and ways of buying the best life insurance plans in the UAE.
What is a Life Insurance?
Life insurance is a contract between the insurance provider and the policyholder where the insurer provides the death benefits to the policyholder’s beneficiaries in case of his/her untimely death. In exchange for the security received, the policyholder pays a regular or a lumpsum premium.
With various life insurance options, you can also invest and grow your wealth simultaneously and receive a cash value after a specified period.
A life insurance plan helps your dependent family members cope with unfortunate situations financially and meet their daily expenses without having to compromise their lifestyle. The sum assured given to beneficiaries can also be used to repay any loans and mortgage. This is to make sure that dependents don’t hold any financial liabilities on your behalf.
How Does Life Insurance Policy Work in UAE?
Life insurance Abu Dhabi and across the UAE works in the following steps:
Step 1: A policyholder pays the premium to the insurance provider.
Step 2: An insurance company guarantees to pay a sum assured to the beneficiary in case of the untimely demise of the policyholder during the policy period. Thus, it ensures the financial stability of the policyholder’s family members.
Step 3: On survival of the life insured until maturity, a maturity benefit will be payable to the policyholder itself. However, it depends on the type of policy and whether or not it offers maturity benefits.
Why Should You Buy a Life Insurance Plan Dubai & UAE?
A life insurance plan offers you several other benefits such as critical illness cover, investment, financial growth options and much more. Following are some of the reasons to buy a life insurance plan in UAE.
A life insurance plan helps your dependent family members to maintain their lifestyle without compromising on their daily needs.
Life insurance acts like your income should the worst happen.
Several life insurance plans include an investment component. After a pre-specified tenure, you start receiving maturity benefits based on your investment returns.
Along with the basic protection, you can also avail yourself of various additional riders such as critical and terminal illness cover, accidental death benefits, and more.
With term life insurance, you can secure your life against a large assured sum at low insurance costs.
Endowment life insurance plans offer a saving component and pay you maturity benefits depending on the cash value at the end of insurance tenure or as specified while purchasing a life insurance plan.
With various payout options, your beneficiaries can choose to pay the assured sum against an active loan or mortgage. Or, receive it as regular income depending on their financial requirements.
The insurance providers in UAE offer a quick and hassle-free claim to ease out the process for your beneficiaries during tough times.
Types of Life Insurance Dubai, UAE
Term Life Insurance Policy
Whole life Insurance Policy
Universal Life Insurance Plans
Indexed Universal Life Insurance
Variable Universal Life Insurance
The competitive insurance market in the UAE offers several kinds of life insurance plans. Although every plan secures your dependent family members, they offer their own sets of features and benefits. The following are some of the popular life insurance policies in UAE.
Term Life Insurance Policy
Term insurance plans are one of the most affordable protection plans since they don’t have any investment component or a maturity benefit. However, you get a large coverage amount at nominal insurance cost. Additionally, the term insurance plan in UAE protects you for a pre-defined period known as insurance tenure. In case of the untimely death of the policyholder within the tenure, the beneficiaries receive the assured sum. But, if the policyholder outlives the protection period, the insurance provider is not liable for the policy benefit. Several insurers offer convertible term insurance plans UAE that can be transformed into an endowment or whole life insurance plans as per your requirements.
Whole life Insurance Policy
As the name suggests, a whole life insurance policy protects the insured individual up to the age of 99 years, or until his/her natural death. A whole life policyholder needs to pay the insurance premium for a set period depending on several factors such as insurance cost, assured amount and more. The plan also acts as a saving and investment tool since your premiums are invested into the equities and debts funds in the UAE stock market and gather a cash value. Based on their performances, you receive the maturity benefits. In case you die before the policy terminates, you get an assured sum along with the accrued bonuses. The whole life insurance in UAE is expensive in comparison to the term insurance plan. However, you can customise your plan as per your requirements and budget.
Universal Life Insurance Plans
Along with a death benefit, universal life insurance plans offer saving components where the premiums paid by the policyholder earn interest. Over the period, the insurance premiums earn cash value which the policyholder receives after a pre-specified tenure or at maturity. In addition, it offers flexible premium options that the policyholder can adjust over time, unlike term and whole life insurance, where the premiums are fixed. As a policyholder, you can fabricate it into a level death benefit plan or an increased benefit.
Indexed Universal Life Insurance
Indexed life insurance is typically universal life insurance that provides level or increased death benefits along with a cash value component. The premiums paid against the indexed policy earn fixed or equity interest rates on the investment component. In case the policy owner dies untimely, the insurer pays the assured death benefit including the bonuses accrued over time. Upon maturity, the policyholder receives the cash value in the form of bonuses.
Variable Universal Life Insurance
With variable universal life insurance, the policyholder gets a separate account to invest the cash value in the stocks, similar to mutual funds. The insurance provides level or increased death benefits based on the policyholder’s requirements. Since the cash value component is exposed to the equities, market fluctuations generate substantial profit and loss margins. However, the insurers offer an assured minimum and maximum returns no matter how the market performs. Individual needs to understand the upside and downside of the market before purchasing a variable universal life insurance plan.
Comparison Between Different Types of Life Insurance Policies Dubai , UAE
The table below will highlight & compare main aspects related to the different types of life insurance policies in UAE:
Parameter
Term Life Insurance Policies
Whole Life Insurance Policies
Endowment Plans
Money Back Policies
Overview
Pure risk protection plans.
Protection plus saving plans that offers lifelong coverage.
Insurance plus savings plan- may or may not be participatory
Protection plus savings plans, providing guaranteed money back throughout the policy tenure.
Term
Usually ranges from 5-40 years
Covers the whole life of an insured.
Usually ranges from 10-40 years
Usually ranges from 20-25 years
Death Benefits
Payable
Payable
Payable
Payable
Maturity Benefits
Not Payable
Payable
Payable
Payable
Premium Costs
Affordable Premiums
Usually have higher premiums
High premiums
Affordable Premiums
Features & Benefits of Life Insurance Dubai, UAE
Life insurance offers much needed financial security during unforeseen incidents. Along with the protection, you get numerous features, enhancing your life security. The following are the features of life insurance plans in UAE.
Death Benefits - As specified in the contract, the insurance provider pays the death benefit to the beneficiaries in case of the policyholder’s death. With this lump sum payment, the dependent family members can continue their life without worrying about the finances. If your insurance plan offers bonuses based on your cash value, your beneficiaries would receive them along with the death benefits.
Investment Components - With whole life insurance, you get two types of long-term benefits, the first based on your insurance plan and another on your investment component within the plan. A fraction of your premium is invested in equity or debt funds as per your choice. Upon maturity, you receive a high return. Depending on your financial planning, goals and risk appetite, your insurer can suggest you the best insurance type. Several plans allow you to switch between various investments based on your evolving goals.
Maturity Benefits - Through maturity benefits, your life insurance plan can double the amount you receive at the end of your insurance tenure. In case the policyholder outlives his policy tenure without any insurance claim, all the premiums paid during the insurance tenure are returned after maturity. In this manner, life insurance also acts as a saving tool along with offering you life security. With shallow research, you can find several life insurance plans in UAE offering maturity benefits and suiting your savings goals.
Coverage Against Liabilities - At certain times, you may have required a loan, mortgage, or any form of debt to fulfill your dreams. With your regular income, you are capable of repaying your loan installments. However, in the event of your unfortunate demise, your family might not be able to handle the sudden financial hardship without a regular income. In such cases, the assured sum from your life insurance can help your dependents to pay off the loans and other liabilities without difficulties even in your absence.
Add-on Riders - Add-on riders are the additional coverages that you can opt for with your basic policy to customise and enhance your life insurance protection. However, purchasing an insurance add-on can increase your premium cost. You can choose the type of coverage that suits your requirements and buy a life plan within your budget.
Flexible Payout Options - With a life insurance plan in UAE, you get flexible payout options. While purchasing a life policy, you can specify your insurer to pay a lump sum amount or a fixed regular installment on a monthly or yearly basis. At the time of claim, your beneficiaries can also choose the type of payout suiting them.
Convenient to Purchase - You can conveniently buy a life insurance plan online by visiting online insurance aggregators like Policybazaar.ae. You simply need to enter the details and the representatives will guide you through the complete application process.
Best Life Insurance Plans Dubai, UAE
AXA Term Life Protect
MetLife Future Protect
Alliance Whole Life Assurance Plan
Zurich Futura
Salama Hyat Secure
Noor Takaful Life Care
Takaful Emarat Lifespan Plan
Union Super Secure
With a competitive insurance market, life insurance companies in UAE offer attractive life plans suiting the needs of every individual. Following is the list of best life insurance plans in UAE along with their features and benefits
AXA Term Life Protect
Features &Benefits of AXA Term Life Protect
AXA Term Life Protect plan offers life coverage of up to USD 50 million.
Since it is a term life insurance plan, you get flexible security tenure ranging from 1 year to 35 years.
Along with basic life coverage, you get security against:
Loss of life due to accidents or illness,
Terminal illnesses,
Permanent disability,
Premium waiver in case of disability
The assured sum can be used to secure your dependents, repay your loans or mortgages or cover your business against losses.
You can pay your premiums on a monthly, half-yearly, or annual basis.
The company accepts premiums in USD and AED.
Once your premiums are decided in the Term Protect plan, it remains throughout the tenure.
You can cancel your policy anytime without paying any cancellation charges.
MetLife Future Protect
Features & Benefits of MetLife Future Protect
MetLife Future Protect plan is a flexible whole life insurance plan that offers you protection for up to the age of 95 years as well as investment options to grow your wealth.
You can avail of insurance benefits of up to USD 50 million.
You can also select it as a single or joint insurance plan with your loved ones.
With Future Protect, you get flexible premium payment options on a monthly, quarterly and annual basis.
You can also choose your contributions towards investment and plan strategies to meet your goals.
Along with the basic protection, you also get the following add-on riders:
Critical Illness cover
Permanent and total disability cover
Accidental loss of life
Premium waiver rider
You get worldwide coverage even after you leave the UAE.
Alliance Whole Life Assurance Plan
Features & Benefits of Alliance Whole Life Assurance Plan
With Alliance Whole Life Assurance, you get life coverage for up to the age of 90 years.
If you outlive the insurance tenure or surrender your policy before maturity, you will receive the accumulated cash value.
With the policy, you get flexible premium payment options on a monthly, quarterly, and annual basis.
Alliance Insurance provides two whole life insurance options i.e Level Premium and Limited Premium whole life insurance.
You get pay-ins and payouts in AED as well as USD.
Along with worldwide coverage, you get options to customise your plan with add-on riders such as triple accident cover and premium waiver.
The premiums in Alliance Whole Life Insurance Plan remains throughout the policy tenure.
Zurich Futura
Features & Benefits of Zurich Futura
Zurich Futura is a limited premium whole life insurance that secures your dependents in case of your unforeseen demise.
Along with life protection, you get additional benefits as mentioned below:
Critical Illness cover
Permanent and Total disability cover
As a Zurich Futura policyholder, you can select your premium payment tenure between 7 to 5 years and enjoy the life cover for your entire life.
The policy also offers an investment component based on your premium and it covers the cost of your insurance benefits
You can also purchase a joint plan with your loved ones within a single policy.
With Zurich Futura, you also get an option to choose your currency between AED and USD at your ease.
Salama Hyat Secure
Features & Benefits of Salama Hyat Secure
With the Salama Hyat Secure, you get whole life coverage for up to 100 years.
As a guaranteed benefit on maturity, you get 85% of your contribution excluding takaful donations.
With Hyat secure, you receive worldwide coverage and, in case the insured member dies during the takaful tenure, the family receives takaful benefits.
Along with the basic life cover, you get add-on riders as mentioned below:
Critical Illness benefits,
Accidental Death benefits,
Permanent total disability
Family income benefits
Waiver of contribution
You can choose to opt for the policy as a single owner or a joint owner with your loved ones.
The takaful protection comes with a built-in terminal illness benefit.
As a policyholder, you can pay the premiums in USD or AED as per your convenience.
Noor Takaful Life Care
Features & Benefits of Noor Takaful Life Care
Noor Takaful Life Care is an investment-linked plan that secures your dependents from unforeseen events.
The plan offers a life cover of up to 99 years.
Your contributions are invested in Sharia-compliant takaful funds to generate cash value.
As a policyholder, you can customise your Life Care Plan with the following add-on riders:
Critical Illness cover,
Accidental death cover,
Permanent total disability cover,
Takaful contribution waiver
You can choose to contribute for a limited period depending on your plan and your financial requirements.
Takaful Emarat Lifespan Plan
Features & Benefits of Takaful Emarat Lifespan Plan
With Takaful Emarat Lifespan Plan, you get whole life security along with future savings.
The takaful uses Sharia-compliant methods of investment to grow your funds over the period.
You get convenient payment options of monthly, quarterly, semi-annually or annual contributions.
As a policyholder, you can customise your plan with the following additional benefits:
Critical Illness benefits
Family income benefit
Permanent total disability
Accidental death benefits
Waiver of contribution in case of total permanent disability
You can increase or decrease your takaful benefits as per your changing financial requirements.
The plan offers worldwide coverage and you can choose pay-in and pay-out options in USD and AED.
Union Super Secure
Features & Benefits of Union Super Secure
Union Super Secure is a unit-linked investment plan that secures your life and generates savings over time to meet your financial goals.
As a policyholder, you can choose to receive 100% of your cash value as death benefits or any other amount depending on your insurer’s terms and conditions.
Along with life protection, you get the following riders to customise your plan:
Critical Illness cover
Hospital cash benefits
Family income benefits
Waiver of Premium benefits
The plan also offers passive war risk cover as a built-in benefit.
Top Five Life Insurance Companies in the UAE
Following are the top life insurance providers in the UAE
AXA Insurance Company
AXA is one of the leading insurance companies in the world, offering its services across the Middle East, Europe, America, Africa, and Indian Pacific region. Headquartered in Paris, France the company operates in the UAE under the anchor of Gulf Insurance Group (GIG). The company offers a variety of Axa life insurance plans suiting the needs of UAE nationals, residents, and ex-pats.
MetLife Insurance Company
Metlife is an American insurance company with over 65 years of service in the United Arab Emirates. Headquartered in Dubai, the company offers support in Bahrain, Kuwait, Qatar and Oman. MetLife UAE offers a host of life and health insurance in the region with international standards. The life insurance plans from Metlife are popular for their simplicity and flexibility.
Salama Islamic Arab Insurance Company
Salama is one of the oldest and the largest sharia-compliant takaful protection providers in the world. Incorporated in the year 1979, the company now has a paid-up capital of AED 1.21 billion. Salama, with its experience of over 42 years, designs takaful solutions as per the needs of the customers to meet their security requirements and financial goals. Salama life insurance offers insurance plans that provide the financial security of your family.
Noor Takaful
Established in the year 2009, Noor Takaful has successfully established its name among the leading Sharia-compliant insurance providers within a short span. The company provides a host of life and non-life takaful cover and strive to support the policyholders during their tough time. The products and services from Noor Takaful life insurance plans are completely shariah compliant.
Zurich Life Insurance
According to Forbes, Zurich Insurance company is the 112th largest public company. Additionally, It is one of the major global insurance providers with a presence in over 200 countries. The company offers a range of world-class Zurich life insurance and Zurich health insurance products to help individuals meet their financial needs.
How to Find Cheap Life Insurance Quotes in Dubai, UAE?
It is critical to get a life cover that secures your dependents adequately after your demise as well as falls into your budget. With online research on various life insurance aggregator websites such as Policybazaar.ae, you can find the cheapest life insurance quotes in UAE. Here are a few things you can do:
Research and Purchase Online - Through online research, you can conveniently compare various policies and select the cheapest life insurance in Dubai. Visit an insurance aggregator website enter your details as asked and, you will receive a list of life insurance depending on your requirements. Buying life insurance online can offer you attractive rebates and discounts.
Compare Quotes - Make a list of various life insurance plans and compare their cost along with the offered benefits. A suitable plan is one that fulfils your protection requirements and lies within your budget.
Choose the Right Plan - To find the cheapest quotes, you need to understand your security needs and then choose an optimal plan. Individuals looking for fixed tenure safety can choose a term insurance plan that offers high insurance benefits at low premiums. Those who aim to invest and grow their wealth along with life security can select whole life insurance or universal life insurance plans.
Use Ladder Strategy for Life Insurance Purchase - Using the ladder strategy, you can save a significant amount on premium payment while still maintaining comprehensive life coverage. To implement it, you need to purchase different term insurance plans with varying tenures. As time passes, some policies expire including your liabilities and you need to pay lesser premiums for the remaining ones. However, you need to define your protection requirements before purchasing a life insurance plan in Dubai.
Exclude Irrelevant add-ons - A life insurance policy may contain various add-ons irrelevant to you, or provide benefits that you may never use. You should ask your insurance provider to remove such riders before deciding your quotes.
If you are confused about finding the right life insurance plan for yourself, you can contact our support team and receive professional advice
Best Life Insurance Quotes in Dubai
Term Insurance Plan
Life Cover
Accident Cover (From Day One)
Sickness Cover (From Day One)
AXA - Life Protect
AED 250,000
AED 250,000
AED 250,000
Takaful Emarat - Fixed term
AED 250,000
AED 250,000
AED 250,000
Noor Takaful - Pure Protection
AED 250,000
AED 250,000
AED 250,000
National Life
AED 350,000
AED 350,000
AED 350,000
Noor TakafulPure Protection Cashback
AED 200,000
AED 200,000
AED 200,000
What is a Group Life Insurance in Dubai?
As a part of employee benefits, several companies and businesses provide life and health insurance in UAE. However, providing a separate plan for each employee can be very hectic and cumbersome. For this reason, the insurance providers come up with group life insurance in UAE. Group life insurance is a discrete life protection plan that secures a group of individuals belonging to the same company or enterprise. The company you are employed with owns your policy but you can claim the benefits as long as you are employed with the firm.
In most cases, the group life insurance contract offers identical benefits to all the employees and, the premiums are far less in comparison to individual life plans.
The employer holds the actual insurance policy also known as the master contract and the employees are issued life insurance certificates as proof of their contract. Similar to other insurance plans, you can choose your beneficiaries in the group life insurance plan.
One of the most common groups life insurance is term insurance. Also known as group term insurance, it is provided to employees on an annually renewable basis. A part or whole of the premium in group life insurance is paid by the employer. The insurance benefits are generally one or two times your annual salary depending on your company terms and conditions. Some employers also offer convertible group insurance that can be modified into individual life insurance when you choose to leave the company. However, such conversions cost a lot and, it is not an advisable option.
Difference Between Group Life Insurance and Individual Life Insurance
A group life insurance plan is a single insurance contract for a group of employees or individuals working in the same company
The employer owns the group life insurance
The coverages are offered only until the time an individual is employed with the company
Individuals under group life insurance get generalised security as decided by the employer
The insurance premium in a group life insurance may increase as an employee ages
With a group life insurance, an individual gets limited coverage according to the company’s policy
Group life insurance does not have a cash value component
No prior health check-ups are required in a group life insurance
An individual life insurance plan is a contract between the insurer and an individual (policy buyer).
The policyholder himself is the owner of individual life insurance.
The life insurance plan can continue lifelong depending on the type of insurance an individual owns
Individual life insurance can be customised as per the requirement of the policyholder
The premiums in individual life insurance remain constant throughout the insurance tenure
In individual life insurance, the coverage amount is unconstrained and is based on the amount decided by the policyholder
Depending on the type of life insurance, an individual may have a cash value component
In individual life insurance, the policyholder needs to undertake a medical check-up before application
How to calculate Life Insurance Premium
Life insurance premium can be calculated by using an online, easy to use tool known as life insurance premium calculator. Insurance seekers and willing applicants can fill in their details into the life insurance calculator Dubai and get the exact payable premium for a particular life insurance policy.
Life Insurance Premium Calculator
Life insurance calculator makes use of four different values to calculate the premium of the life insurance policy i.e. the coverage, age of the applicant, term of the plan, smoking status.
What Are the Factors That Affect a Life Insurance Premium?
The cost of your insurance depends on the risk you possess to the insurer, and subsequently on the amount of the assured death benefits and age of the policy buyer. With a healthier lifestyle, you can ensure higher assured sums with low premium costs. Following are the key factors that influence your insurance costs.
Age - To determine the cost of your life insurance, your age is an important factor. The premium cost increases with age because, as a young individual, you are likely to be healthy and have fewer chances of contracting a life-threatening disease. Due to this reason, you possess a lesser risk to the insurer, lowering your insurance cost. So, it is always advisable to buy life insurance earlier in life.
Gender - Statistically, women live longer as compared to men and, they also have fewer chances of acquiring lifestyle habits like alcohol consumption or smoking. Owing to this reason, they possess lower risks and the insurance companies provide rebates and discounts on the insurance cost.
Height and Weight - Not very significant for moderately weighted individuals, but the insurance companies consider your body weight relative to your height while deciding your insurance premiums. Since overweighted individuals are more likely to contract cardiovascular diseases, the insurers charge them a higher insurance cost in comparison to fit individuals.
Your Medical History - The insurance providers are interested in knowing your medical history, including your family medical history of critical and terminal illnesses. While purchasing a plan, you need to take a prior medical test. Based on the reports, the insurer determines your insurance cost. Your family medical history forecasts your susceptibility to a disease in the future.
Alcohol Consumption and Smoking - Lifestyle habits like alcohol consumption and smoking are one of the largest contributors to critical illnesses insurance such as cancer, liver and heart diseases. Smokers and alcohol consumers are prone to file a claim, so the insurance companies charge a higher insurance premium.
Occupation - Individuals working in hazardous environments such as boilers, chemical plants, oil refineries and mines have higher chances of filing a claim. So the insurance companies in UAE increase the life insurance premium for such applicants.
Adventure Sports and Hobbies - People involved in life-risking adventure sports and hobbies are prone to accidents, increasing the chances of filling insurance claims. For such individuals, the cost of a life insurance plan is higher in comparison to a common applicant.
Who Needs Life Insurance Dubai, UAE?
It is the sole responsibility of every breadwinner to look after their dependent family members even in the most adverse situations. However, the survival of the dependents can become challenging if something happens to earning member. In such situations, life insurance benefits assist the family members financially to meet their expenses. Therefore, life insurance is crucial to every earning member of the family, including individuals with dependent members such as children, spouses, elderly parents. Additionally, if you have an active loan that your dependents might inherit, you need a life insurance plan. With a life plan, you can secure your loved ones even when you are not around.
How to Find the Best Life Insurance in UAE, Dubai?
To get the best life insurance plans, you need to research extensively about the available plans. However, when you have outlined your protection requirements it becomes easy to compare and select a suitable plan. You can consider the following factors to compare a life insurance plan in UAE.
Cost of Life Insurance Plan: Before purchasing a life insurance plan, you need to compare and find the insurance company that provides desired protection at the lowest price or under your budget.
Solvency Ratio: The solvency ratio informs about your insurer’s capability to settle the claims during unforeseen circumstances. During natural disasters, an insurance company receives a large number of claims and, in such cases solvency ratio becomes crucial. The insurer that you choose needs to have enough capital to handle and settle a large number of claims simultaneously. Your family’s security depends on the financial security of your insurance provider, therefore consider this factor while choosing your life insurance plan.
Claim Settlement Ratio: It is the ratio between the claims made and the claims settled with a year. With a company having a higher claim settlement ratio, you get the assurance that your dependent family members will receive the insurance benefits with ease after you are gone. In addition, you also need to ensure that a significant number of claims are filed, only then you can get a clearer picture. While selecting the best life insurance plan, take the claim settlement ratio into account, as it outlines the reliability of your plan.
Critical Illness Cover: Several insurance companies provide critical illness cover along with a basic life plan. Since a critical illness treatment can cripple your family savings, you need to ensure that an insurance provider covers the hospitalisation and medical expenses of illnesses such as heart and lungs disease, cancer, diabetes, etc.
Additional Covers: With additional covers, you can customise your life insurance plan as per your protection requirements. You don’t need to buy a comprehensive plan and pay for unnecessary benefits if you have the freedom to choose your protection. You can buy additional covers that are relevant to you with your basic plan with a nominal premium rise.
Eligibility Criteria to Buy a Life Insurance in UAE
While purchasing a life insurance plan, you need to satisfy a few criteria related to your age and residency. However, the criteria may vary depending on the life insurance provider in the UAE. Following are the common criteria you need to satisfy while purchasing a life insurance plan.
Age - To buy a life plan in UAE, you need to be at least 18 years old or above. Several providers have a minimum age requirement of 21 years. You need to verify the age requirements before purchasing a life plan.
Nationality - You should be a UAE national or a resident with a valid UAE resident visa. During a life plan purchase, you need to produce a few documents to certify your age and residency details.
Documents Required to Purchase a Life Insurance in Dubai, UAE
Along with satisfying the eligibility criteria, you need to submit relevant documents as proof of your identity, age and address. Following are the list of documents you need to submit while purchasing a life insurance plan in UAE.
Emirates ID for UAE nationals and residents,
Valid Passport ID for ex-pats with a valid Emirates visa
Utility bills for address proofs,
Bank Statement from the past three to six months
Income certificate
Salary Slip
Proof of health status
Step by Step Guide to Buy a Life Insurance Policy Dubai, UAE
Buying a life insurance plan in UAE can be tricky. Therefore, you need to follow the below-mentioned steps to get the right life insurance plan.
Choose the right insurance policy - While purchasing a life insurance plan, you need to outline your financial needs and choose the right insurance plan among term, whole life, Universal and Endowment plans.
Determine your coverage requirement - Subsequently, you need to determine the insurance coverage amount that would be adequate for your dependents in the case of your demise. Coverage requirements depend on various factors such as the number of dependents you have, your earning and expenditure, forthcoming expenses, etc.
Analyse your budget - Before purchasing a life plan, you need to analyse your budget and find affordable plans as per your needs. It will also help you determine what type of life insurance best suits you.
Get the Life insurance quote - Once you have decided on insurance type and your budget, you can visit the insurance provider’s web portals and request online quotes. Policybazaar.ae help you find life insurance at the cheapest rates in UAE.
Compare and Buy - After you have gathered the life insurance quotes, you can compare and select the best life insurance plan as per your requirement in UAE.
During purchase, you may be asked to take a medical test. You need to comply with the insurance provider and stay truthful since wrong information can cause troubles during the claim process.
Life Insurance Payout Options in Dubai, UAE
To help the beneficiaries manage the assured amount effectively, the insurance companies offer various payout options as mentioned below.
Fixed Regular Payout - With a fixed regular payout option, your beneficiaries receive a fraction of the assured sum on a monthly or yearly basis for a fixed tenure as decided by the policyholder following the settlement or until the depletion of the insurance amount.
Lumpsum Payout - With a one-time lump-sum payment, the beneficiaries can receive the whole of the death benefits including bonuses at once. In case of loan or mortgage repayment, you can opt for a lumpsum payment.
Lumpsum Payment with Regular Payout - With combinations of regular payout options, a beneficiary receives the death benefit and bonuses along with a fixed regular payout (monthly or yearly) following the insurance claim.
What are the Additional Riders Available with a Life Insurance Plan?
To customise your life insurance plans, the providers in the UAE offer add-on riders. With a small increase in your premium, you can buy these riders customising your base protection plan. Following are the add on riders for life insurance in UAE
Critical Illness cover - With a critical illness cover, your policy secures you against cancer, heart and lung diseases etc. On diagnosis of a critical illness, the company bears the expenses of treatment, medications and hospitalisation. If the policyholder dies during the treatment, the company pays the assured sum.
Accidental Death Cover - If you opt for an accidental death cover, the insurance company provides an extra amount in addition to the death benefits in case you die due to an accident. The accidental death benefit is calculated based on the base plan and it may have an upper payable limit, depending on the insurance company.
Terminal Illness Cover - With a terminal illness cover, your beneficiaries would receive a fraction of the assured sum in case, you have been diagnosed with a terminal illness. The amount helps the policyholder’s family members to cope with situations and meet urgent medical expenses. Again, the coverage amount in the terminal illness cover depends on your life insurance assured sum.
Permanent Disability Rider - When you purchase a permanent disability cover, the insurer compensates your income for the loss of employment up to a specific time. The amount is paid as a percentage of your assured sum. With a permanent disability cover, you can ensure that your family maintains the prior lifestyle even during unforeseen situations.
Premium Waiver Add-on - In case of accidents or sicknesses resulting in permanent disability, you might not be able to work or generate income. With a premium waiver rider, the insurer revokes your subsequent premiums while the policy remains active until the pre-decided tenure.
Claim Settlement Ratio Of Life Insurance Plan in Dubai & UAE
When it comes to choosing the right life insurance Dubai plan and provider, claim settlement ratio is a crucial factor. Claim settlement ratio often known as CSR is defined as the ratio of total number of claims paid against the total number of claims filed by the insurance provider.
Claim Settlement ratio can be mathematically represented as-
CSR= total number of claims settled/ total number of claims registered
The claim settlement ratio provides an insight into the cumulative number of claims settled by a particular insurance provider. Insurance seekers should try and look for life insurance companies in Dubai and all over the UAE with a higher claim settlement ratio as it will increase their likelihood of receiving the sum against a claim.
Life Insurance Claim Settlement Process
Here is the rundown of the various claim process in a life insurance policy.
For Death Claims
A Duly Filled Claim Form - To file a claim, beneficiaries need to submit a duly filled claim settlement form. You need to visit the official website of the insurance provider to download the claim form.
Submission of Supporting Documents - During the claim filing, nominees need to produce the supporting documents along with the claim form. It must include the following
Death certificate,
Documents mentioning the cause of death,
Medical reports
In case of death in a foreign country, a valid death certificate issued from the UAE embassy needs to be submitted.
Verification and Waiting Period - Once all your documents have been submitted, the insurer performs a verification before settling the claim. It is a standard process and can take a while. However, if you have submitted all the supporting documents, you get a hassle-free claim settlement. The time that the insurer takes to complete the settlement process is known as a waiting period. With all your process done, you may expect a waiting period of 4-5 business days.
Settlement Process - After the insurance company verifies all your information based on the submitted documents and finds them satisfactory. The insurance benefits are disbursed to the beneficiaries.
For Maturity & Survival Claims
On outliving the policy tenure, the policyholder can file a survival claim and receive the maturity bonuses. In most cases, the insurer directly pays the bonuses or the survival benefits if the policyholder registers his/her bank details while purchasing the policy.
However, you can provide your details any time during the insurance tenure or claim settlement. Following are the list of documents required during survival claims.
The original policy document,
Emirates ID proof, or a valid passport
Bank account details
The process for additional rider claims are also similar however, you need to submit additional documents supporting your claim settlement.
FAQ's
What is Life Insurance?
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.
What are the various types of life insurance plans in the UAE?
Insurance providers in the UAE offer both conventional and sharia-compliant life insurance (Takaful cover). However, both these plans can be broadly classified into the following plans:
Term life insurance
Whole life insurance
Universal life insurance
Endowment plans
What is the minimum age to buy term insurance in the UAE?
Depending on your insurance provider, you need to be atleast 18 years of age while applying for a term insurance plan.
What are the additional riders in the life insurance plan?
Additional riders enhance your life protection plan with a nominal increase in the insurance cost. Following are the common add-on riders with life insurance plans:
Critical Illness cover
Accidental death cover
Family income cover
Permanent disability cover
Waiver of premium cover
What documents do I need to file a death claim in UAE?
Following are the documents required while filing a death claim in the UAE.
Death certificate issued by the competent authority
Documents mentioning the cause of death,
Medical reports
In case of death in a foreign country, a valid death certificate issued from the UAE embassy needs to be submitted.
What is the life insurance definition?
Life insurance is an agreement between the policyholder and insurance provider. The insured individual agrees to pay a premium on a regular basis and the insurer guarantees to pays out a sum assured to the nominee in the event of the demise of the policyholder.
What is the meaning of sum assured?
Sum assured is the assured amount that the policyholder will receive. It is also known as the coverage amount for which an individual is insured.
Is it expensive to buy the best life insurance policy in the UAE?
There is a wide range of life insurance UAE options that work for every budget and financial situation. Thus, it is best to shop around and compare differnet life insurance quotes online based on the coverage, features, and price in order to find best life insurance policy as per your insurance needs and convenience.
Will I get anything on maturity under term life insurance?
You will not get anything since there is no maturity under term insurance. The only benefit you will get under this plan is the death benefit. The beneficiaries will get the sum assured in case of the untimely death of the policyholder.
Can I change the duration of the life insurance after the policy is issued to me?
Well, the duration of life insurance policy can’t be changed after the policy is issued to you.
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