Best Life Insurance Cover in UAE

Life insurance is a crucial financial instrument that ensures one’s loved ones are taken care of after their demise. This type of insurance offers a lump-sum payment, known as a death benefit, to the insured’s beneficiaries if the former passes away.

Life Insurance in UAE
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AED 1 million life cover starting @50/month
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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.

 

How Does Life Insurance Work in the UAE?

 

As we saw earlier, 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.

 

Which Life Insurance is the Best to Get?

 

Tabled below are the best life cover in UAE along with their key details:

 

Insurance Plan

Life Cover (AED)

Additional Rider Included (s)

HAYAH Term Life Protect

2,000,000

  • Temporary Life Cover of AED 900,000
  • Passive War Risk Cover of AED 2M
  • Terminal Illness Cover of AED 734,000

Zurich International Term Assurance

2,000,000

Terminal Illness Cover of AED 2M

Takaful Emarat Fixed Term 

2,000,000

Not Included

Al Buhaira Life Protect

2,000,000

Not Included

Orient Term Plan

2,000,000

  • Passive War Risk Cover of AED 2M
  • Terminal Illness Cover of AED 2M

MetLife Live Life Now

1,000,000

  • Terminal Illness

Sukoon DigiCI 

1,000,000

Not Included

Sukoon DigiTerm

1,000,000

Not Included

 

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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

 

What is the Main Purpose of Life Insurance in UAE?

 

Discussed below are some of the standard benefits of life insurance in Dubai and other Emirates — 

 

  • High Coverage Amount: In the UAE, you can get coverage for up to AED 1 million, starting at premiums of just AED 50* per month!
  • Ensures Your 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: 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

    Most UAE life insurance plans allow you to add critical illness cover, which provides a lump sum payment if you’re diagnosed with a critical illness. This sum can be used to cover your medical expenses, loss of income, and more. 

 

*T&Cs applicable

 

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 benefits

 

Comparing Different Type of Life Insurance Policies

 

Parameter Term Life Plan Whole Life Plan Endowment Plans Money Back Plan

Group Life Plan

ULIPs
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. Risk protection plan with no savings component Risk protection plan with money-growth component via market-linked investments
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

Over the employment tenure with a company

Usually 5-30 years
Death Benefits Payable Payable Payable Payable

Payable

Payable

Maturity Benefits Not Payable Payable Payable Payable Not Payable

Payable

Premium Costs Affordable Premiums Usually have higher premiums High premiums Affordable Premiums Usually at No Cost to the Employee High premiums

 

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Best Life Insurance Plans In Dubai & UAE

 

Let’s move on to the specifics and explore some of the best life plans in Dubai –   Hayah Insurance – Term Life Protect Watania Takaful – Pure Protection Zurich Insurance – International Term Assurance Orient Insurance – International Term Plan Sukoon Insurance - DigiTerm. The table below highlights the key features of the best life covers available in Dubai –

 

Insurance Company

Key Features

Hayah Insurance (Previously AXA GCIC)

Plan Name - Term Life Protect

  • The plan covers COVID-19.
  • No medical checkup is required.
  • It provides worldwide coverage.

Watania Takaful (Previously Noor Takaful)

Plan Name – Pure Protection

  • The plan covers COVID-19.
  • Pre-existing disease coverage is subject to the insurance provider’s approval.
  • Worldwide coverage

Zurich Insurance

Plan Name – International Term Assurance

  • The plan covers COVID-19.
  • Pre-existing disease coverage is subject to insurer approval.
  • No maturity bonus payout.
  • No medical checkup is required.
  • It provides worldwide coverage.

Orient Insurance

Plan Name – International Term Plan

The plan provides worldwide coverage.

Sukoon Insurance (Previously Oman Insurance)

Plan Name - DigiTerm

  • The plan covers COVID-19.
  • No coverage for pre-existing diseases
  • No maturity bonus payout
  • No medical checkup is required
  • Worldwide coverage provided

 

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How to Buy Life Insurance in UAE?

 

With Policybazaar.ae, you can easily find the most suitable and cost-effective insurance for life. This online platform lets you surf, compare, and get plans as per your budget and needs. 

 

To get the best life insurance in UAE through our site, simply follow these steps —

  1. On Policybazaar.ae, head to the 'life insurance' section.
  2. Correctly fill out the lead form.
  3. Explore the life insurance quotes and choose a plan that best suits your needs.
  4. One of our representatives will contact you to assist further with the process.

 

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

 

  1. 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.
  2. Multiple Options in One Place: Get the top plans for insurance for life from multiple insurance providers in one place. 
  3. Transparency: Get all the key details about life policies — benefits, exclusions, T&Cs, premiums, and more.
  4. Easy Comparison: Compare the most relevant life insurance quotes in just a few clicks. 
  5. Personalised Assistance: Have any queries or issues? Our expert team is ready to help you throughout the application process for a smooth journey.
  6. 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 requirements.

    *T&Cs apply

 

How to Calculate Life Insurance Premium?

 

With a life insurance calculator, you can easily find your premiums. 

Your life insurance Dubai cost depends on various factors that we will discuss in detail in the next section. You can enter all these basic details in an insurance premium calculator to get an estimate of how a particular plan will work for you.  

 

Here are some easy steps to follow —

 

  1. On Policybazaar.ae, choose ‘Life Insurance’ from the menu. 
  2. In the column showing multiple life insurance quotes, enter your details. 
    This will include the policy tenure, sum assured, tenure, and the payment frequency. 
  3. Once done, you will see the estimated premium for your policy. 
  4. You can change the details to see how your premium changes.

    Note: This calculator is for reference purposes only. Actual prices may differ as per your profile and the chosen plan. 

 

Which Factors Affect Life Insurance Premiums?

 

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

 

  • 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. 
    Note that your regular health is also considered. For instance, if you’ve a high Body Mass Index (BMI), you can incur higher premiums as being overweight or obese is linked to an increased risk of various health complications. 
  • 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.

 

Who Needs Life Insurance Dubai, UAE?

 

Insurance schemes aren’t just for those with dependents — they are for anyone in Dubai, UAE who wants to secure their family's financial future. 

 

Whether you're a parent supporting a growing family, a spouse contributing to household expenses, or an individual with financial obligations like loans or mortgages, it’s always a good idea to get the best life cover insurance for invaluable financial protection. It ensures that your loved ones won't face financial hardships if something unexpected were to happen to you, even if it's the cheapest life insurance.

 

In essence, life policies are for anyone who wants to ensure peace of mind and stability for their family — both now and in the future.

 

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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?

 

Here are the major payout options available with UAE life insurance —

 

  • 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: This mode brings the best of both worlds. 

 

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?

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 Plan
  • Whole Life Plan 
  • Universal Life Plan 
  • 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 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 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 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 cover UAE options that work for every budget and financial situation. Thus, it is best to shop around and compare different life insurance quotes online based on the coverage, features, and price in order to find best insurance policy as per your insurance needs and convenience.

How to get life insurance?

Policybazaar.ae presents to you the easiest and the most efficient way to buy life cover. On this platform, you can compare policies from the top insurance providers side-by-side. You can also enjoy the added advantage of prompt expert assistance to help you along the process.

  1. Go to Policybazaar.ae
  2. Select ‘Life Insurance’ from the topmost selection bar
  3. Enter your basic details like age, contact details, name, etc.
  4. You’ll see a range of options from the top insurance providers.
  5. Select the one that suits your needs and budget the best.
Should I buy life insurance?

Yes, life plan certainly provides a feeling of peace of mind for a lifetime, especially if you have dependents. It can cover both immediate and long-term expenses, serve as income replacement amidst unfortunate circumstances, provide disability cover, and also guarantee a cash value growth (depending upon the plan). 

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