Term insurance in UAE is a basic life cover that assures payment of a death benefit to the policyholder’s beneficiary in case of the former’s demise. The premium of a term plan is based on factors like your age, lifestyle, health, income, and life expectancy. As an affordable life cover, it offers a ...read more
Term insurance is a type of life insurance. It offers financial protection for a set period — usually between 5-35 years. In case of the death of the insured individual in the policy tenure, the insurance company pays a death benefit to the insured’s beneficiaries.
With its life coverage, a term policy ensures the financial stability of the insured’s family in unfortunate circumstances. Furthermore, term life plan costs are pretty nominal when we compare their potential benefits. This makes them an excellent option to financially secure your family.
Read What is Term Insurance and know more about the term plan and how it works.
Here are the best term insurance quotes in UAE:
Particulars | Specification |
---|---|
Term Insurance Cost | Starting at AED 50 |
Plan Coverage Amount | AED 1 million |
Minimum Entry Age | 18 years |
Maximum Entry Age | 65-79 years depending on the insurer |
Term Insurance Plans Tenures |
Starting 5 years to 35 years |
Countries Covered | 190+ Countries covered |
Coverage |
|
Who Should Buy a Term Insurance |
|
Features & Benefits |
|
Claim procedure | Can Claim both online and offline |
Claim Settlement Ratio | 94-98% |
As mentioned earlier, a term plan provides limited-period life cover to the policyholder and their beneficiaries against unforeseen events. If the insured individual dies during the policy tenure, the insurer provides death benefits to the dependent family members.
Let’s understand this through a term life insurance example.
Justin got his term plan for his family with the following terms —
*The premium is indicative only. Actual prices may vary.
Case 1: Justin Passes Away While the Policy is Active | Case 2: Justin is Alive At the End of the Policy Term |
---|---|
His family will receive death benefits on filing a claim. For this, they will need to submit supporting documents and any other details required by the insurer. | No death benefit will be provided. The policy will simply expire. |
If you still have questions about the process, click here to read how term insurance works!
With Policybazaar.ae, getting the best term policy is just a matter of a few clicks. Here’s how you can get the best term insurance in UAE in 5 simple steps:
When you buy term life insurance online via Policybazaar.ae, you get an additional advantage of 24x7 expert assistance to help you wherever you get stuck. Alternatively, you can visit your selected provider’s nearby office and submit your application in person.
Term Cover is crucial for working individuals, young parents, and people with dependent family members. To secure their loved ones during unforeseen circumstances, they need to buy a suitable plan. Following individuals must choose a term protection plan.
Young professionals who started working recently have lesser liabilities. It is the best time for them to choose a term insurance plan since they can avail of high insurance benefits with low premiums.
Being the sole earners of the family, parents need term insurance to protect their dependents against unfortunate events and secure them financially.
A term insurance plan safeguards your spouse, assisting them in managing financial matters even in the event of your passing.
Being a self-employed individual, you have dual obligations. One towards your loved ones and the other towards your business. The term plan benefits can help secure your venture and your dependent family members.
Working women and single parents should consider a term cover plan to secure their loved ones from unforeseen situations.
Term plans provide financial security to the policyholder’s family. By paying death benefits in case of the life assured’s death, these plans help protect dependents like the policyholder’s spouse, children, or elderly parents from financial strain.
Such policies are especially useful for newly married individuals, new parents, or business owners with debts or financial responsibilities. They can cover daily expenses or fund goals like a child’s education.
The payout of term insurance can be made periodically or as a lump sum after a claim is filed. Additionally, if you, as a policyholder, pay a bit extra on the premium, you can get coverage for additional risks like critical illnesses, waiver of premium or accidental disabilities. You can also increase coverage at key life events such as marriage or becoming a parent.
There are various types of term plans in UAE that you can choose as per your security needs and family obligations:
1. Level Term Insurance
It is the most common type of term insurance UAE. In a level term plan, the premium is pre-decided and remains unchanged throughout the tenure. Among all the term insurance plans, a level term cover is the cheapest in UAE.
2. Increasing Term Plan
An increasing term plan is a term policy that increases your assured sum every year at a specific rate. The rate of increment is pre-defined and disclosed to the policyholder at the time of purchasing the plan. The increasing term cover is best suited for individuals with changing life situations since the assured sum increases tackling inflation. Here, the premium for term life insurance UAE may or may not change over the period as per your insurer.
3. Decreasing Term Plan
Unlike increasing term cover, decreasing term plans reduce the assured sum with every passing year. Again, the declining rate of the assured sum is pre-specified as per your age and health during the plan purchase. Decreasing term policy is suited for individuals with active loans or mortgages. Such term plans work on the notion that your liability decreases with your age, which shows in the reducing sum assured too.
4. Convertible Term Insurance
With convertible term insurance UAE, you get the option of converting your policy into whole life insurance, endowment, or money back plan. Individuals with changing financial situations can opt for convertible term insurance. To convert your plan, the insurer may require additional documents or medical check-ups as per the policy requirements.
Here’s how you can find the best term life insurance policy for yourself —
More Information on Key Features of Term Insurance |
---|
Listed below are a few steps that you can take to get the best term insurance in UAE at affordable premiums —
With that said, keep in mind that it’s not only about premiums! While you might think getting a cheaper plan is good, it can also cause problems or insufficient coverage when your family makes a claim. This can actually leave them without any financial support in unfortunate circumstances.
Insurer Name | Plan Name | Claim Settlement Ratio | Min Age | Max Age | Min Premium |
---|---|---|---|---|---|
MetLife | Live Life Now | 97.30 % | 21 | 60 | 20 AED/Monthly |
Zurich Insurance | Critical Illness Protection | 95.00 % | 18 | 74 | 0 |
Al Buhaira (ABNIC) | Life Protect (Al Buhaira) | - | 18 | 70 | 172 AED/Yearly |
Arabia Insurance | Term Life | 95.00 % | 15 | 70 | - |
Sukoon Insurance (Prev. Oman Insurance) | DigiCI (Critical Illness) | 97.50 % | 18 | 70 | 14 AED/Monthly |
Zurich Insurance | International Term Assurance | 97.90 % | 18 | 74 | - |
A term policy is a type of policy that financially secures the beneficiary in case the policyholder, unfortunately, passes away during the policy tenure. A whole life insurance plan is a policy that remains active throughout the policyholder’s life.
Parameter | Term Insurance | Life Insuramce |
---|---|---|
Tenure | You can select the policy tenure from 5, 10, 15, 20, 25, or 30 years | Usually the entire life of the policyholder |
Benefits | The beneficiary only receives the death benefit but there are no maturity benefits | The beneficiary receives a death benefit — in case the policyholder survives the tenure, they may receive a maturity benefit |
Premium | Nominal since there is only life cover and no other benefit | Usually higher than term insurance |
Cash Value | No cash value — only a death benefit is provided if the policyholder passes away during the policy tenure | There is a cash value that accumulates over time |
Surrender Value |
If the policyholder stops paying premiums on a term plan, the insurance will lapse after a 30-day grace period Term plans don’t have a surrender value, and you won't get back any premiums paid |
You can exit a whole life insurance plan before it ends, but you'll face consequences You'll lose the maturity benefit and only get part of the premiums back However, if you stay invested for 3-5 years and then exit, you will receive a surrender value. |
If you are looking for more affordable options, you can opt for a term policy. However, if you want investment and insurance in one place, you can explore life insurance.
Read More: Difference Between Term and Life Insurance
When you compare term plans online, here’s what you can enjoy —
✅ Up to 35% discount* on plans | ✅ Best term policies from the leading providers in one place |
✅ Zero hassle – all work done from the comfort of your home | ✅ Accurate details so that you make an informed decision |
✅ Easily find both inclusions and exclusions | ✅ Check the most relevant add-ons as per your plan |
*T&Cs apply
Here’s an overview of the top factors that affect term insurance costs —
Age | Younger people usually get lower premiums due to lower health and mortality risks |
Health | Premiums are lower for those without any major illnesses than those having such a record |
Sum assured | The higher the sum assured or death benefits, the higher your premium for term insurance UAE |
Policy term | Generally, the longer you get coverage for, the higher your premiums |
Lifestyle habits | If you smoke or drink regularly, your premiums might increase |
Inclusions
|
Exclusions
|
---|---|
Death due to natural causes or medical conditions | Death after the maturity of term policy |
Death due to accidents | Death due to foreign invasions, wars, or warlike situations |
On diagnosis of a terminal illness with less than 12 months of survival period | Death due to an undisclosed or pre-existing health condition |
Diagnosis of critical illnesses | Death due to alcohol or drug abuse |
Permanent and total disability during the insurance tenure | Death as a result of criminal activity under UAE laws |
Premium waiver in case of total disability | Death caused due to sexually transmitted diseases like HIV-AIDS |
Yes, NRIs can buy term insurance from Indian insurance providers. As an NRI, when you buy term insurance from India, you get the following benefits –
Note that there are 2 factors to consider when buying an NRI term insurance policy –
Take note of the following factors when deciding a term insurance plan tenure—
Additionally, longer tenures usually have lower premiums. Make sure that the premium fits both your budget and long-term savings plans.
To enhance and customise your term insurance plan, insurance providers in UAE offer additional protection via add-on riders. With a nominal increase in your premium, you can include these riders in your base protection plan.
Here are some popular add-ons for the best term life insurance in UAE —
Add Ons | Features |
Critical Illness cover | The company provides coverage in case of life-threatening illnesses such as cancer, stroke, and more. On the diagnosis of a critical illness, the company provides a lump sum. You can use it for medical expenses as well as day-to-day needs and loss of income. |
Accidental Death Cover | Beneficiaries get an extra amount in addition to the death benefits in case you die due to an acc | ident. The accidental death benefit is calculated based on the base plan and may have an upper limit as per the insurer.
Terminal Illness Cover | Your beneficiaries get a fraction of the assured sum if you are diagnosed with a terminal illness. This amount helps your family cope with situations and meet urgent medical expenses. |
Permanent Disability Cover | The insurer compensates your income for around up to 10 years in case of loss of employment due to disability. This way, your family can maintain their prior lifestyle even during unforeseen situations. |
Premium Waiver Cover | In case of inability to work due to accident or illness, the insurer waives your subsequent premiums while the policy remains active until the pre-decided tenure. |
Along with satisfying the term life insurance eligibility criteria, you need to submit relevant documents as proof of your identity, age, and address.
The following is the list of documents you need to submit while purchasing a term policy in UAE.