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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.
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.
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.
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.
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 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.
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.
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 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.
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.
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|
|Maturity Benefits||Not Payable||Payable||Payable||Payable|
|Premium Costs||Affordable Premiums||Usually have higher premiums||High premiums||Affordable Premiums|
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.
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
Features &Benefits of AXA Term Life Protect
Features & Benefits of MetLife Future Protect
Features & Benefits of Alliance Whole Life Assurance Plan
Features & Benefits of Zurich Futura
Features & Benefits of Salama Hyat Secure
Features & Benefits of Noor Takaful Life Care
Features & Benefits of Takaful Emarat Lifespan Plan
Features & Benefits of Union Super Secure
Following are the top life insurance providers in the UAE
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 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 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.
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.
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.
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:
If you are confused about finding the right life insurance plan for yourself, you can contact our support team and receive professional advice
|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|
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.
The following table depicts the major differences between group life insurance and individual life insurance.
Group Life Insurance
Individual Life Insurance
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 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.
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.
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.
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.
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.
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.
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.
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.
To help the beneficiaries manage the assured amount effectively, the insurance companies offer various payout options as mentioned below.
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
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.
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.
Here is the rundown of the various claim process in a life insurance policy.
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 process for additional rider claims are also similar however, you need to submit additional documents supporting your claim settlement.
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.
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:
Depending on your insurance provider, you need to be atleast 18 years of age while applying for a term 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:
Following are the documents required while filing a death claim in the UAE.
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.
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.
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.
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.
Well, the duration of life insurance policy can’t be changed after the policy is issued to you.