Buy a term plan and secure your family
Term insurance is a life insurance plan that offers higher financial coverage at lower premium rates for a fixed number of years. With a term insurance plan, the insurer provides the policy beneficiary with the sum assured in the event of the policyholder’s demise during the term.
Term insurance in the UAE is also considered a safe investment instrument as it offers substantial coverage with plenty of maturity benefits. The best part about term insurance plans is that the entire premium goes into securing your future. Based on your financial preferences, you can pay your term insurance premiums in different frequencies, such as yearly, quarterly, or monthly.
Term Insurance, also known as Term Life Insurance, is a type of life insurance that covers your life risks up to a defined tenure at the pre-specified premium amount. As the name suggests, it is a type of insurance that provides financial security for a particular ‘term’ that may vary from 65-75 years as per your term insurance plan. In case of your untimely demise, the insurance company will pay out the sum insured to your family. If you outlive the relevant tenure or cross the specified age, you will no longer retain the financial security.
Term life insurance in the UAE is the cheapest and the most effective method of safeguarding the financial interests of your family in case of your untimely death. Let us say that you are the only bread earner in your family, and you pass away without leaving a considerable fortune behind you. Under such circumstances, your family members will be forced to fend for themselves. To ensure that finances are the least of your family’s concerns after a mishap, term insurance in the UAE provides high life risk covers at a lower premium granting you peace of mind and your family a financial backup to remain financially independent. You can purchase a term life insurance policy in the UAE of up to AED 100,000 at a premium rate of AED 7 per month.
There are several types of term life insurance plans available in the UAE. The two most popular variants are as follows:
In this policy, the premium remains the same throughout the policy and comes with a premium guarantee from the insurance company. Level term plans can further be divided into the following categories:
In this policy, the premium changes every year or after a fixed number of years. This plan is often cheaper than a level term insurance plan in the initial years, however over a longer duration can turn out to be more expensive.
The key features of term insurance are as follows:
One of the biggest features of term life insurance policy is that they are a lot more affordable when you buy them young. The reason is pretty simple, a younger person with a healthier body is of a less risk for the insurance company to take. So, if your sole motive behind buying a term insurance plan is to ensure that your dependents are well taken care of, buying it young is a good choice. Ideally, the right time to buy term life insurance is as soon as you resume the responsibility of a family that depends on you for their basic needs.
Just like every other type of insurance plan, term life insurance also has own set of pros and cons. Although depending on the needs and requirements, the cons often act in favour of the policy holder. Given below is a comparison chart of the pros and cons of term life insurance policy in the UAE:
Lower premium rates hence, a more affordable choice
Temporary coverage with a pre-decided expiration date
A better and bigger pay-out upon the death of the insured for the beneficiaries
Re-qualification is required at the end of each term
Can be converted into a whole life insurance plan whenever you like
Does not accumulate a cash value i.e., no maturity benefit
Comes with a flexible term for the policyholder to choose
Premiums do not stay the same and can shoot up every time buy a new plan
Here’s a quick rundown of some of the best term insurance plans in the UAE based on customer reviews, features, and services.
Alliance is one of UAE’s oldest and leading insurance. The company offers comprehensive insurance solutions to wide a range of customers right from corporations, individuals to government bodies and undertakings.
AXA, one of the largest global insurers, is a worldwide leader in insurance and asset. In the gulf region, AXA has been present for 70 years, offering a wide range of insurance products and services for corporate, SME and individual customers.
Their products offer instant issuance thereby making them customer-friendly and easy to procure. One can be done with the buying process in less than 3 minutes without the hassle of paperwork and physical signatures.
Life Insurance Corporation, commonly known as LIC is India’s largest life insurance provider. Operating under the name of LIC International in the gulf, it is a popular name amongst the NRIs residing in the region.
Metropolitan Life Insurance Company, better known as MetLife, is among the largest global providers of insurance, annuities, and employee benefit programs.
Live Life is one of the few products in the region that offers an extensive bouquet of riders and additional benefits. This is an ideal product for customers looking for comprehensive coverage.
National Life and General Insurance were established in 1995. It is one of the leading health insurance providers in the UAE market. National Life and General Insurance has been recognized as a leader in the corporate medical insurance industry in the UAE, Oman and Kuwait markets.
Noor Takaful has emerged as one of the strongest Takaful brands in the UAE. The company was established in the year 2009 to provide a broad range of Islamic insurance products. The company has rapidly gained a sizeable market share.
Pure Protection is one of the few plans that offer a high policy term. Customers looking for maximum coverage duration should consider this product. To top it off, the plan has uniform rates for smokers and non-smokers. Pure Protection Plus on the other hand is one of the most elegantly designed returns of premium plans in the region. An ideal buy for customers looking for this feature in a level term insurance plan.
Oman Insurance is a comprehensive insurance company headquartered in Dubai, UAE that engages in insurance solutions for individuals and businesses in UAE, Oman and Turkey. Established in 1975 with majority ownership by Mashreq Bank, Oman Insurance is one of the largest publicly listed insurers in the country. Oman Insurance offers products across all lines of insurance.
While Digi Term policy is an online-friendly product that offers instant issuance, Life Guard on the other hand is a fully comprehensive level term insurance plan.
Salama is one of the most well-known names when it comes to Shariah-compliant Takaful providers in the UAE. The company was incorporated in the year 1979 with a paid-up capital of AED 1.2 billion. The company offers various types of insurance products.
While Hemayati Plus is a fixed tenure level term insurance plan, Hemaya Plus offers more flexibility in terms of sum assured and plan term options.
Takaful Emarat was established in 2008. It is a leading Shariah-compliant Life and Health Takaful Provider in the UAE. Takaful Emarat markets a wide range of individual and corporate life and health Takaful products including protection, savings and investment plans through a variety of distribution channels. Takaful Emarat is also a participating insurer providing basic mandatory health insurance in the Emirate of Dubai.
Fixed Term has grown to become a household name with its aggressive pricing and superior customer service. Customers looking to start their term insurance journey must give this option serious consideration.
Union is one of the most reliable and popular insurance companies in the UAE. The company was established in the year 1998 with a paid-up capital of approximately AED 330 million. The company is known for its budget-friendly and innovative lineup of insurance solutions for people from all classes of society.
Smart Term stands out amongst all term insurance plans available in the UAE. This term insurance plan is fully pre-underwritten, requires no medical checkups and comes with a pre-approved pre-existing disease cover.
Zurich is a leading multi-line insurer that serves its customers in several markets around the globe. It provides a wide range of property, casualty and life insurance products in more than 215 countries and territories. Zurich has had a presence in the UAE for over 30 years.
International Term Assurance is UAE’s most popular term insurance plan. A household name, this plan offers loads of benefits, comprehensive coverage and comes at an attractive price.
|Term Insurance Plan||Life Cover||Accident Cover (From Day One)||Sickness Cover (From Day One)||Price|
|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|
Following is a list of the best term insurance companies in Dubai and the rest of the UAE and a brief on the types of insurance covers that they offer:
|Term Insurance Companies||Offered Term Insurance Plans|
|National Life and General Insurance||
|Zurich Term Insurance||
Term insurance forms an essential part of financial planning. It ensures the financial security of a family by providing them with a lump sum payment to meet household expenses, children’s school fees, etc. in case the breadwinner is no more.
Key features of term insurance are as follows:
Term life insurance plans are useful for anyone who has other people to take care of. If you have parents who are retired or not working anymore for any other reasons, you should consider buying one of the best term plans available in the UAE. Someone who has just gotten married and has a non-working wife, should also consider buying a term plan. If your parents are working as of now and so is your wife, you can delay the decision for a while but revisit this choice before family planning and other important financial decisions.
When living in a foreign land, ex-pats need to ensure that their families don’t face any financial hardships in their absence. Most ex-pats make the common mistake of only buying the best term insurance plan in their home country currency; for example, most Non-Resident Indians (NRIs) make the mistake of purchasing only a rupee-denominated term insurance plan. This leaves their UAE expenses and liabilities exposed.
What ex-pats need to consider is securing their UAE expenses while residing in the UAE. Let us consider a case wherein an ex-pat breadwinner meets with an untimely death and his/her family contemplates repatriation to the home country.
Hence, the right approach is to buy a UAE term insurance policy that complements the home country term insurance plan.
The term insurance policy covers all forms of death, be it accident or sickness. Hence, in insurance parlance, these plans are often referred to as death-any-cause plans.
While term insurance policy covers every scenario under the sun, the only exclusion that applies is suicide within the first 12 months of the policy term.
Any individual aged between 18-69 years can purchase a term insurance policy. However, it needs to be kept in mind that the premium depends on the age at entry and the premium increases with the entry age. An individual wishing to be covered till the age of 60 years can make significant savings by entering the plan at the age of 30 years as opposed to 40 years. Hence, the earlier a person buys a term insurance plan, the lesser is the premium.
Term insurance plans today can be bought using just the following documents:
Applying for and buying a term insurance plan is an extremely easy task. You can buy term insurance plans via both offline and online methods. Contact one of the branches of your insurance provider or get in touch with a broker to buy the plan offline. Either of the two can guide you through the buying process once you have stated your requirements.
To buy term insurance online, you can use the provider website or you can simply proceed to buy the plan from here on with PolicyBazaar UAE. Click on the application portal, and register to get term life insurance quotes. Choose the best term insurance plan as per your needs and provider you like and follow through with the next steps to finalize the purchase. To buy a term life insurance policy from the provider website, you can log in to the purchasing portal and complete a simple application process.
Term insurance premiums are calculated based on age, gender, smoker status, policy term and sum assured. Insurance aggregator websites such as Policybazaar.ae help customers compare premiums online.
As explained above, term insurance secures you for a pre-specified period. This period can range between 5 to 30 years, depending on the providers and your needs. Let’s say that you choose a term life insurance policy for 25 years. Such a plan will ensure that your dependents are paid the sum assured in case of your untimely death during these 25 years – the term of the plan. However when the policy matures, the coverage ends. Meaning, the compensation sum is only provided if the insured dies within the insured term of the plan.
One size does not fit all, and this phenomenon applies to even the best term insurance plans as well. For instance, some plans offer basic coverage, while others come with a variety of riders; some are level in nature while others are annually renewable. Online comparison helps individuals select the right plan for themselves.
In order to ensure a smooth claims process, beneficiaries are required to follow the below-mentioned steps:
Being your one-stop solution for everything finance-related, PolicyBazaar UAE limits the hard work and helps you decide on the best term life insurance plan for you. You can compare term life insurance providers, plans offered, term life insurance quotes, and additional benefits – all in one place. It is not only time-saving but also convenient. On top of that, our financial experts and a prompt customer service team are always there to lend you a hand. With PolicyBazaar UAE, you buy smart and better.
Term Insurance policy offers you numerous benefits such as:
|Death Benefits||Irrespective of the cause of death, the family of the policyholder will receive the insured sum in case of the death of the policyholder during the pre-specified tenure.|
|Free Look Period||In case you change your mind and do not want term insurance after purchasing it, you can return and receive a refund on your term insurance premium.|
|Grace Period||If you are late in paying the premium of your term insurance you can take advantage of the grace period which provides you with extra time to pay your premium|
|Term insurance riders||
Term Insurance plan in the UAE is one of the cheapest methods to safeguard your family’s financial interest making them financially independent even after your untimely demise.
No one can tell you the right amount of coverage for your family is better than you. Weigh the needs of your family members. Consider the future needs of your family such as your children’s education, marriage, etc., and decide the coverage you require.
To choose the right term insurance plan in the UAE:
An Ideal term insurance should neither be too short nor too long. Find a term insurance policy in the UAE which covers you till the age of 65 or 70.
Some factors that can affect the term insurance premiums are: