Life Insurance Dubai

Life insurance in UAE is typically used as a way to protect loved ones from financial hardship after the policyholder's death. It can also help to cover living expenses in the event of disability or illness. By having a life insurance policy, individuals can ensure that their family members are taken care of in the event of their death. Additionally, life insurance can be used to cover any outstanding debts, provide an inheritance for children, or fund end-of-life expenses. UAE residents can also use life insurance to save for retirement, as some policies offer long-term savings options. Overall, life insurance is an important tool for protecting individuals and their families from financial loss. ...read more

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One can never fully prepare for life's unpredictable twists and turns. However, insurance, specifically life insurance, presents an astute strategy for managing these inherent life risks, providing a safeguard for both you and your loved ones. 

In the bustling, cosmopolitan city of Dubai, understanding the ins and outs of life insurance becomes particularly important. With numerous insurance providers present in Dubai, knowing the fundamentals of life insurance becomes necessary to make an informed choice. 

This article will serve as your comprehensive guide to 'Life Insurance Dubai', shedding light on its features, operations, application process, and the factors influencing its premium. By delving into its basics, we will equip you with the necessary knowledge to make an informed decision about your life insurance coverage, creating a solid foundation for your family's financial future.

What is a Life Insurance?

Life insurance can be defined as a legally binding agreement between an individual who holds the policy and an insurance establishment. This arrangement necessitates the policyholder to contribute payments, known as premiums. In return, upon the policyholder's demise or after a predefined time frame, the insurer disburses a specified sum of money. 
This monetary value, often referred to as the 'life cover', plays a pivotal role in securing the financial stability of the policyholder's family. It provides them with a substantial amount of money in the unfortunate event of the policyholder's passing. 

life insurance

In addition, numerous life insurance policies come with a provision for a 'maturity benefit'. This refers to the sum that the insured party receives at the conclusion of the policy term. 
All in all, life insurance serves as a safety net, supporting your family's future financial requirements and creating a financial cushion that lasts beyond your lifetime.

How Does Life Insurance Policy Work in UAE?

Life insurance policies in the UAE (including Abu Dhabi and Dubai) serve a dual purpose. They not only deliver life coverage for financial support to the policyholder's family in their absence but also facilitate the achievement of various financial goals — children's education, funding a wedding, purchasing property, and securing a steady income post-retirement.

Here's a simplified look at how life insurance functions in the UAE:

Step 1: The initial step involves the policyholder paying a premium to the insurer. This is essentially the price that the policyholder pays for the security provided by the insurance.

Step 2: The next phase guarantees that the insurance provider will deliver a predetermined sum, known as the sum assured, to the chosen beneficiary if the policyholder passes away during the policy term. This ensures the financial well-being of the policyholder’s family in their absence.

Step 3: The final stage occurs when the insured party survives until the end of the policy term. Here, a payout, known as the maturity benefit, is made to the policyholder. However, this depends on the specific nature of the policy, as not all life insurance plans offer a maturity benefit.

Best Life Insurance Plans in UAE 2024

Tabled below are the best life insurance plans in UAE along with their key details — 

Insurance Plan

Life Cover (AED)

Sum Insured in Case of Death

Additional Rider Included (s)

HAYAH Term Life Protect

2,000,000

Accident – AED 2M

Sickness – AED 2M

  • 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

Accident – AED 2M

Sickness of AED 2M

Terminal Illness Cover of AED 2M

Takaful Emarat Fixed Term 

2,000,000

Accident – AED 2M

Sickness – AED 2M

Not Included

Al Buhaira Life Protect

2,000,000

Accident – AED 2M

Sickness – AED 2M

Not Included

Orient Term Plan

2,000,000

Accident – AED 2M

Sickness – AED 2M

  • 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

Accident – AED 1M

Sickness – AED 1M

Not Included

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Why Should You Buy a Life Insurance Plan Dubai & UAE?

Life insurance serves numerous purposes beyond simply providing a payout after one's death. Here are some compelling reasons why securing a life insurance policy in Dubai is a prudent decision - 

Ensuring Financial Security: Life insurance can ensure your family's financial stability even if you encounter an unforeseen circumstance. It helps your beneficiaries manage the financial impact of such a loss.

Compensating for Lost Income: A substantial death benefit paid out by life insurance can substitute the income lost due to the policyholder's passing, mitigating the financial burden on their family.

Settling Debts and Final Expenses: With life insurance, you can ensure that any pending debts or final expenses, including funeral costs, are covered. This saves your family from shouldering this financial burden in case of any unfortunate circumstance.

Funding Your Children's Education: Certain life insurance policies offer excellent avenues to allocate funds for your children's educational requirements to ensure that their academic future is secure.

Facilitating Business Continuity: For a business owner, life insurance can supply critical financial resources required to initiate or sustain the business in their absence.

Creating Investment Opportunities: Some life insurance policies with cash value allow policyholders to withdraw or borrow against their policy, opening up potential investment avenues. However, it’s worth remembering that these loans must be repaid on schedule.

Offering Peace of Mind: The mere presence of a life insurance policy can bring a sense of tranquility, as you would be knowing that your family's financial future is protected.

Assisting in Estate Planning: If an individual has an estate plan, life insurance can ensure that all their final wishes, including special bequests to loved ones, are carried out smoothly.

Providing Support in the Event of Critical Illness: Life insurance isn't solely about protection after death — it can also alleviate financial stress if you face a serious illness. Policies with critical illness cover can offer financial coverage in such situations, which can be beneficial with respect to treatment and recovery. This can make your life more comfortable even in challenging health circumstances.

Types of Life Insurance in Dubai and UAE

Each life insurance 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 insurance in the 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

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

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Features & Benefits of Life Insurance Dubai, UAE

Life insurance provides an essential financial safety net during unexpected circumstances. The comprehensive range of features accompanying these policies further strengthens your life security. 

Listed below are some prominent features of life insurance plans in Dubai - 

Death Benefits -

Upon the policyholder's demise, the insurance company disburses a death benefit (as outlined in the contract) to the beneficiaries. This substantial payment enables the dependent family members to maintain their lifestyle without financial stress. 

If your insurance plan includes bonuses linked to your cash value, these will be paid to your beneficiaries along with the death benefits.

Investment Elements -

Whole life insurance policies bring dual long-term benefits — life coverage and an investment component. A portion of your premium gets channelled into equity or debt funds, as per your preference, promising potentially high returns at maturity. 

Depending on your financial goals, planning, and risk tolerance, your insurance provider can advise you on the most suitable policy type. Some plans also offer the flexibility to switch between different investments to align with your changing objectives.

Maturity Benefits -

Maturity benefits have the potential to amplify the amount that one receives at the end of their policy tenure. So if the policyholder survives the policy period without making any claim, all the premiums paid during that period are refunded upon maturity. In this manner, life insurance also serves as a savings tool while providing life coverage. 

Coverage Against Financial Obligations -

At times, loans, mortgages, or other debts may have been necessary to achieve your dreams. While you're certainly capable of managing these liabilities with your regular income, the financial burden might become overwhelming for your family in the event of your sudden demise. 

The sum assured from your life insurance policy can assist your dependents in settling these debts without any financial strain even amidst such unfortunate circumstances.

Add-On Riders -

Riders refer to additional coverage options that you can attach to your base policy to tailor and boost your life insurance protection. Bear in mind that adding riders to your insurance policy will likely increase your premium. Thus, you should select the coverage that best fits your requirements and choose a life plan within your budget.

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Best Life Insurance Plans Dubai, UAE

 

Let’s move on to the specifics and explore some of the best life insurance 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 insurance plans 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

Hayah Insurance (Previously AXA GCIC)

Plan Name - Term Life Protect

Features &Benefits of Hayah Insurance

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

Sum Insured Payout in Case of Death

  • In case of an accident, AED 1,000,000 is payable from day one.
  • In case of sickness, the sum insured is AED 1,000,000 (paid from day one).

Add-Ons

  • The plan offers a terminal illness cover of AED 500,000 for 10 years at no extra cost.
  • The critical illness cover is AED 100,000 for 10 years and costs AED 273.86.
  • The passive war risk cover is AED 1,000,000 (for 10 years) and is free.
  • The Permanent Total Disability (PTD) cover is AED 1,000,000 for 10 years and costs AED 115.26.
  • A temporary life cover of AED 900,000 is provided for free.

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Watania Takaful (Previously Noor Takaful)

Plan Name – Pure Protection

Features & Benefits

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

Sum Insured Payout in Case of Death

  • Payout for pre-existing diseases is subject to insurer approval.
  • In case of an accident, AED 1,000,000 is payable from day one. 
  • In case of sickness, AED 1,000,000 is payable from day one.

Add-Ons

  • The plan offers an optional critical illness cover of AED 100,000 for 10 years at a cost of AED 391. 
  • The passive war risk cover is AED 1,000,000 for 10 years and is free.
  • The Permanent Total Disability (PTD) cover is AED 100,000 for 10 years and costs AED 11 although this is optional.

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Zurich Insurance

Plan Name – International Term Assurance

Features & Benefits

  • 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.

Sum Insured Payout in Case of Death

  • Payout for pre-existing diseases is subject to insurer approval.
  • In case of an accident, AED 1,000,000 is payable from day one.
  • In case of sickness, AED 1,000,000 is payable from day one.

Add-Ons

  • The plan offers a terminal illness cover of AED 1,000,000 for 10 years at no extra cost.
  • The critical illness cover is AED 100,000 for 10 years.
  • The Permanent Total Disability (PTD) cover is AED 1,000,000 for 10 years.
  • The plan offers a premium waiver for 10 years.

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Orient Insurance

Plan Name – International Term Plan

Features & Benefits of Zurich Futura

  • The plan provides worldwide coverage.

Sum Insured Payout in Case of Death

  • Payout for pre-existing diseases is not covered.
  • In case of an accident, coverage is provided from day one.
  • In case of sickness, coverage is provided from day one.

Add-Ons

  • The plan offers a terminal illness cover of AED 1,000,000 for 10 years at no extra cost.
  • The (optional) critical illness cover is AED 100,000 for 10 years and costs AED 272.
  • The Permanent Total Disability (PTD) cover is AED 100,000 for 10 years and costs AED 36, although this is optional.
  • The passive war risk cover is AED 1,000,000 for 10 years and is free.

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Sukoon Insurance (Previously Oman Insurance)

Plan Name - DigiTerm

Features & Benefits

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

Sum Insured Payout in Case of Death

  • Pre-existing disease coverage is subject to the insurer’s approval.
  • In case of an accident, AED 1,000,000 is payable from day one
  • In case of sickness, AED 1,000,000 is payable from day one.

Apply Now

Top Five Life Insurance Companies in the UAE

Following are the top life insurance providers in the UAE

AXA Insurance Company

axa life insurance

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. 

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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. 

Apply Now

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.

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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.  

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Zurich Life Insurance

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. 

Apply Now

How to Find the Best and Cheap Life Insurance in Dubai?

Finding the best and cheapest life insurance in Dubai becomes easy with the Policybazaar UAE platform. 

This online portal is your gateway to getting the best life insurance in Dubai that matches your needs and budget. It simplifies the search for cheap life insurance in Dubai by offering a comprehensive platform where you can explore, compare, and choose from a variety of life insurance options.

To apply for a life insurance policy through Policybazaar UAE, simply follow these steps —

  1. Visit the official website of Policybazaar UAE.
  2. Locate the 'term life' insurance option on the platform.
  3. Fill out the lead form with the necessary details.
  4. Choose the plan that best suits your needs from the options presented.
  5. A representative from Policybazaar.ae will then contact you to assist further with the process.

Applying for life insurance through Policybazaar UAE comes with numerous benefits, including —

  1. Wide Array of Options: The platform offers access to a various selection of life insurance policies from multiple insurance providers. This helps you find the best fit for your needs.
  2. Ease of Comparison: Policybazaar UAE’s intuitive tools simplify the process of comparing different policies.
  3. Transparent Information: You receive all the crucial details about life insurance policies, including benefits, exclusions, terms and conditions, and premium rates.
  4. Personalised Assistance: The expert team at Policybazaar UAE is always ready to provide guidance and support throughout the application process and beyond for a smooth insurance journey.
  5. Time and Cost Efficiency: The online platform saves you both time and effort by allowing you to search, compare, and apply for life insurance from the comfort of your home. Additionally, by comparing various plans, you can find a cost-effective policy that meets your requirements.

How to Calculate Life Insurance Premium?

The estimation of the cost of life insurance premiums can be efficiently accomplished with an Insurance Premium Calculator, typically found on the websites of insurance providers. 

Your life insurance premium depends on a variety of factors such as your chosen sum assured, age, gender, additional coverages or riders, and personal lifestyle habits. Since insurers set these premiums, they can differ from one policyholder to another. Any changes in these variables or the frequency of premium payment can impact the final premium amount.

The benefits of a life insurance calculator are numerous - 

  • This tool allows you to select the maximum life cover that aligns with your budget. It also enables you to choose additional benefits at the best premium rates offered by life insurance companies.
  • An online life insurance calculator can instantly compute the premium, thereby saving you considerable time.
  • A life insurance premium calculator encourages independent decision-making without the influence of an agent. You can use the calculator multiple times and find the approximate premium for different plans. This autonomy can help you select the most suitable plan as per your requirements.
  • Utilising a life insurance premium calculator accelerates the process, as manual calculations are eliminated. This delivers quick and accurate results.

To use a life insurance premium calculator, simply follow these steps - 

Despite the competition among various insurance providers, with each one having its own premium calculation methods, you'll typically need to provide the following details to determine your life insurance premium - 

  • Enter your age
  • Choose the desired sum assured
  • Indicate your gender
  • Confirm whether or not you consume tobacco or alcohol
  • After these steps, you will receive the premium quotations for your chosen life insurance plans

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

The following table depicts the major differences between group life insurance and individual life insurance.

Group Life Insurance

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

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?

Life insurance premiums are primarily calculated as per the following factors - 

Age:

Younger individuals generally get life insurance at lower premiums, as they are statistically less likely to suffer from severe health issues. Conversely, older individuals are considered high-risk in this regard, which results in higher premiums.

Gender:

Various insurance providers offer lower premiums to women due to statistical data indicating that they generally live longer than men. As a result, they are likely to pay premiums over longer policy tenure, which, combined with lower mortality risk, reduces their premium costs.

Health Status:

Medical examinations conducted prior to purchasing a life insurance policy can influence premium amounts. These tests help insurance providers evaluate your current health and predict potential future health issues, subsequently affecting your premium rates.

Lifestyle Habits:

Consumption of harmful substances such as tobacco or alcohol can lead to higher premiums. This is because these habits increase the risk of health complications, which places individuals in a higher risk category from their insurance provider’s perspective.

Medical History:

A history of serious illnesses such as heart disease or cancer can significantly increase life insurance premiums, as they denote a higher risk profile.

Profession:

Occupations considered hazardous or high-risk, such as mining or oil and gas industry jobs, can also increase your premiums due to the greater risk of accidents or health issues associated with these fields.

Policy Term:

Longer policy terms typically result in larger death benefits due to longer premium payment periods, whereas shorter-term policies can be more expensive in the short run due to the concentrated premium payment timeframe.

Lifestyle Choices:

Engaging in high-risk activities such as extreme sports or dangerous hobbies can also increase your premiums. These activities present a higher risk of injury or death, which leads to higher premium rates.

Body Mass Index (BMI):

Obesity can also influence life insurance premiums. Being overweight or obese is linked to an increased risk of various health complications, including osteoarthritis, cancer, stroke, high blood pressure, and heart disease. This leads to higher premiums for individuals compared to individuals with a healthier BMI.

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. 

Eligibility Criteria to Buy a Life Insurance in UAE

The criteria required for purchasing a life insurance 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 insurance 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 Required to Apply for Life Insurance UAE

When applying for a life insurance policy, individuals are required to furnish the following set of documents - 

  • Recent passport-size photos
  • Emirates ID card
  • Passport with an attached UAE residence visa (for expatriates)
  • Proof of residential address

Please keep in mind that these requirements can differ among insurance providers. It is advisable to verify the necessary documentation online prior to initiating the application process.

Step by Step Guide to Buy a Life Insurance Policy Dubai, UAE

To simplify your journey of purchasing a life insurance policy, just follow these steps - 

Select the Most Suitable Policy:

With numerous options available out there, making the correct choice of plan can certainly be overwhelming. However, doing a bit of online research can assist you in finding a plan that fits your budget and meets your requirements.

Determine the Coverage:

To ensure a secure future for your loved ones, finding a policy with broad coverage can be incredibly advantageous.

Assess Your Financial Situation:

Evaluating your budget not only facilitates future savings but also eases your financial strain by helping you choose the most affordable policy.

Gather Insurance Quotes:

To simplify the selection process for your life insurance policy, it can be helpful to access several life insurance quotes — whether online or through traditional channels.

Compare Quotes and Finalise the Policy:

After collecting all the quotes, make comparisons based on premiums, duration, and other factors. After a thorough examination, you can finalise your preferred policy.

Life Insurance Payout Options in Dubai, UAE

Insurance companies provide various payout options to help beneficiaries manage the assured sum effectively - 

Steady Regular Payments:

In this scenario, the beneficiaries receive a certain portion of the assured sum periodically (either monthly or annually) for a specified duration as determined by the policyholder. This continues until the settlement or until the insurance amount is fully depleted.

One-Time Lump Sum Payment:

With this payout option, the beneficiaries receive all death benefits, including any bonuses, in one lump sum. This option can be particularly beneficial in situations where large payments, such as loan or mortgage repayments, are required.

Combination of Lump Sum and Regular Payments:

This provides the flexibility of both previous options. In this scenario, the beneficiary receives the death benefit and any bonuses as an upfront lump sum, along with subsequent regular payments (monthly or yearly) for a predetermined duration following the insurance claim. 

This offers the immediate financial support of the lump sum while also ensuring a steady income over time.

Life Insurance Rider - Policybazaar uae

What are the Additional Riders Available with a Life Insurance Plan?

Life insurance policies often provide the opportunity to add additional coverage called riders to the base policy. Some of the common riders with respect to life insurance in the UAE include - 

Premium Waiver on Critical Illness:

This add-on cover waives future premiums if the insured individual becomes critically ill. This can be a lifeline for those diagnosed with severe diseases, alleviating financial burdens for them and their families.

Terminal Illness Benefit:

This rider allows for an early claim if the insured person is diagnosed with a terminal illness and has a life expectancy of less than 12 months. This option can be invaluable for individuals who are terminally ill.

Accidental Death Benefit:

This rider offers additional coverage if the policyholder's death is due to an accident. Insurance companies provide a stipulated duration after the accident within which the claim can be made. 

On the policyholder's death, the nominee will receive the accidental death benefit sum assured in addition to the basic death benefit sum assured outlined in the policy.

Premium Waiver on Accidental Disability:

If the policyholder suffers from an accidental injury resulting in a disability, this rider waives off future premium payments. Keep in mind that this add-on cover is available for an extra premium.

Accidental Disability Coverage:

This rider offers benefits if the insured individual becomes disabled or injured, and their condition prevents them from working. It may also cover individuals who suffer from illnesses, injuries, or other unforeseen circumstances, even if they are not technically categorised as disabled.

Critical Illness Coverage:

This popular rider provides a sum if the policyholder is diagnosed with a critical illness such as cancer, heart disease, organ failure, or tumors. It's crucial to review the insurance company's list of covered critical illnesses before opting for this rider.

Accidental Total and Permanent Disability:

This rider offers a separate sum assured to the policyholder in case of total and permanent disability resulting from an accident, distinct from the base death benefit sum assured.

Life Insurance Claim Settlement Process and Claim Settlement Ratio

Understanding the life insurance claim settlement process is crucial before purchasing a policy. This ensures that in times of need, your beneficiaries are equipped with the necessary knowledge to claim the benefits smoothly. 

The specifics of the claim process are usually detailed in the fine print of your policy document. With that said, here is a general overview of the process divided into two main types — death claims and maturity & survival claims.

Death Claims

Death claims come into play upon the policyholder's demise within the policy term. Under this benefit, the nominated beneficiaries receive the death benefit as financial support.

Process

  1. Notification: The insurance company must be immediately informed about the policyholder's death. This notification should include preliminary details such as the date, cause, and place of death.
  2. Document Submission: The claimant is required to submit the necessary documents to proceed with the claim.
  3. Claim Assessment: The insurer assesses the claim based on the submitted documents and may ask for additional information or clarification.
  4. Settlement: Once the claim is approved, the death benefit is disbursed to the nominee(s).

Documents Required

  1. Death certificate of the policyholder
  2. Original policy document
  3. Proof of identity and relationship to the deceased (for the nominee)
  4. A completed claim form
  5. Medical records (if required)

Maturity and Survival Claims

Maturity claims are relevant when the policy term ends and the policyholder is alive. Survival claims might apply to certain policies with survival benefits payable at specified durations during the policy term.

Process

  1. Maturity Notification: The insurer usually sends a notification prior to the maturity date with details on how to claim the maturity benefit.
  2. Document Submission: The policyholder submits the required documents for claim processing.
  3. Settlement: The maturity or survival benefits are then credited to the policyholder's bank account.

Documents Required

  1. Original policy document
  2. Emirates ID proof or a valid passport
  3. Bank account details for the transfer of funds

Keep in mind that while the process is similar for additional rider claims, specific supporting documents related to the rider claim need to be submitted.

Note

To gauge an insurance company's reliability and efficiency in processing claims, you can check its claim settlement ratio. 

Expressed as a percentage, the life insurance claim settlement ratio indicates the proportion of claims settled by the insurer out of the total life insurance claims received in a year. A higher ratio suggests that the company is more reliable in settling claims. 

Generally, a claim settlement ratio above 90% is considered good. 

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FAQs

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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