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Term Insurance

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AED 100,000 cover starting at just AED 7/month

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Term insurance is the purest form of life insurance and forms a critical part of an individual’s financial plan. It provides the beneficiary with a lumpsum payout in the event of death of the insured member. The plan helps a family cope with the financial burden of household expenses and children’s school fees in case the bread winner of the family is no more. Unlike popular misconception, term insurance plans are simple, transparent and affordable. In the UAE, individuals can purchase a plan for as low as AED 7 per month.

Apart from a simple death benefit, consumers can also opt for various riders that enhance the individual’s coverage. Popular riders include terminal illness, critical illness, disability and waiver of premium.

 

Types of Term Insurance Plans in UAE

There are several types of term insurance plans available in the UAE. The two most popular variants are as follows:

1. Level Term Insurance Plan: In this policy, the premium remains the same throughout the course of the policy and comes with a premium guarantee from the insurance company. Level term insurance plans can further be divided into the following categories:

  1. Regular Pay: In this variant, premiums are paid throughout the course of the policy term.
  2. Limited Pay: In this variant, premiums are paid for a limited number of years, whilst the policy is valid for a longer duration. For example: You can opt for a 30-year policy with a premium payment term of 10 years. This essentially means that you will have to pay your premiums for only 10 years, while your policy will remain active for 30 years.
  3. Single Pay: In this variant, the insurance company collects the total premium that it would have collected over the entire course of the policy right at the start of the policy.
  4. Return of Premium: In this variant, the policyholder gets back a percentage of the total premiums paid at the end of the policy period.

2. Annual Renewable Term Insurance Plan: 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.

Features & Benefits of Term Insurance

The key features of term insurance are as follows:

  • Simplicity: Term insurance plans are easy to understand as compared to other market-linked or whole life insurance plans. When the policyholder dies, the beneficiary gets a payout, no questions asked.
  • Affordability: Term insurance is the most affordable form of life insurance. In the UAE, one can buy a plan for as low as AED 7 per month.
  • Portability: Term insurance plans available on Policybazaar.ae come with worldwide coverage. This means the policyholder is covered in any part of the world; so even if the policyholder migrates from the UAE post purchasing the plan, as long as he/she continues to pay the premiums, the plan remains active. This also means that the beneficiary of the policy can receive a payout in any part of the world.

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Best Term Insurance Plans in the UAE

Here’s a quick rundown of some of the best term insurance plans in the UAE based on customer reviews, features, and services.

Alliance Insurance

Level Term: Level term insurance plan

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

Life Protect: Level term insurance plan

Simple Life: Annual renewable term insurance plan

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.

LIC International

Healthee: Level term insurance plan

Life Insurance Corporation, commonly known as LIC is India’s largest life insurance providers. Operating under the name of LIC International in the gulf, it is a popular name amongst the NRIs residing in the region.

MetLife (Metropolitan Life Insurance)

Live Life: Level term insurance plan

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

Term Plan: Level term insurance plan

National Life and General Insurance was 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

Pure Protection: Level term insurance plan

Pure Protection Plus: Level term insurance plan

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 definitely 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 return of premium plans in the region. An ideal buy for customers looking for this feature in a level term insurance plan.

Oman Insurance

Digi Term: Level term insurance plan

Life Guard: 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 is an online-friendly product that offers instant issuance, Life Guard on the other hand is a fully comprehensive level term insurance plan.

Salama

Hemayati Plus: Level term insurance plan

Hemaya Plus: 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

Fixed Term: Level term insurance plan

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 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 Insurance

Smart Term: Level term insurance plan

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 Insurance

International Term Assurance: Level term insurance plan

Your Life: Level term insurance plan

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.

What’s the Need for Term Insurance in UAE?

Term insurance forms an essential part of financial planning. It ensures the financial security of a family by providing them with a lumpsum payment to meet household expenses, children’s school fees, etc. in case the bread winner is no more.

A couple of key features of term insurance are as follows:

  • One can buy a term insurance plan for as low AED 7 per month, which is a fraction of what traditional life insurance plans cost.
  • The death benefit can be availed by the beneficiary in case of the sudden demise of the policyholder.
  • As the premiums are very less, the savings can then in turn be utilized for savings and investments.
  • The policy can be clubbed with different riders such as terminal illness, critical illness, disability and waiver of premium.

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Why Should Expats Buy Term Insurance in UAE?

When living in a foreign land, expats need to ensure that their families don’t face any financial hardships in their absence. Most expats make the common mistake of only buying a 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 totally exposed.

What expats need to consider is securing their UAE expenses while residing in the UAE. Let us consider a case wherein an expat bread winner meets with an untimely death and his/her family contemplates repatriation to the home country.

  1. Family won’t be able to repatriate overnight.
  2. Family will begin winding up their UAE lifestyle, which will take time.
  3. Bank accounts of the bread winner may get frozen till all pending dues are settled.
  4. Paperwork will need to be filed with the bank in order to access funds.
  5. All this might take a couple of months, which basically means that the family would need access to quick cash in order to meet regular expenses and other costs.
  6. Getting a payout from the home country insurer would mean burdening the family with more paperwork.

Hence, the right approach is to buy a UAE term insurance policy that complements the home country term insurance plan.

Term Insurance: Inclusions

Term insurance plans cover all forms of death, be it accident or sickness. Hence, in insurance parlance these plans are often referred to as death-any-cause plans.

Term Insurance: Exclusions

While term insurance plans cover every scenario under the sun, the only exclusion that applies is suicide within the first 12 months of the policy term.

Eligibility Criteria for Buying Term Policy

Any individual aged between 18-69 years can purchase a term insurance plan. effect of age on term insurance price 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, lesser is the premium.


Documents Required to Buy a Term Insurance

Term insurance plans today can be bought using just the following documents:

  • Emirates ID
  • Passport
  • Visa

How to Calculate Term Insurance Premium?

Term insurance premiums are calculated based on age, gender, smoker status, policy term and sum assured. Insurance aggregator websites such Policybazaar.ae help customers compare premiums online.

Term Insurance Comparison

One size does not fit all, and this phenomenon applies to 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.

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Term Insurance Claim Process

In order to ensure a smooth claims process, beneficiaries are required to follow the below mentioned steps:

  • Claim Form: Beneficiaries are required to submit a duly filled claim form along with relevant supporting documents.
  • Supporting Documents: Beneficiaries are required to attach a death certificate and other medical documents along with the claim form. In case the death occurs outside the UAE, beneficiaries are required to get the death certificate attested by the local UAE embassy.
  • Claim Processing: After receiving all the necessary documents, insurance companies process the claim within a few working days. Certain insurance companies process claims within just 3-4 working days.
  • Policybazaar Promise: Beneficiaries can even seek help of the sales agent, for example provider such as Poicybazaar.ae provide beneficiaries with the necessary support at the time of claims processing. NRI customers can even avail the help of Policybazaar.ae’s dedicated NRI helpline.