Short Term Disability Insurance - Short term disability insurance is a type of insurance plan designed to compensate for the lost income due to a disability
Term insurance is a type of life insurance policy that provides coverage for a predetermined period. It is an affordable option for those looking for protection against unforeseen events, such as the death of a loved one. It can be used to replace lost income, fund a child’s education, and provide financial security for one’s family in case of death or disability. It is also a great way to supplement one’s retirement savings or provide coverage for a specific purpose, such as mortgage protection. read more
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Insurance providers in UAE offer a smorgasbord of tempting life insurance plans. Term insurance is the most affordable one out of these options considering the substantial life cover it offers for reasonable premiums. With term insurance, you can avail yourself of life protection for a fixed tenure starting from 5 and going up to 35 years. In addition, the term insurance plans include a variety of benefits like critical illness cover, return of premium, and more. With the basic plan, you can also opt for several add-ons to enjoy customised protection that suits your insurance needs.
Along with the conventional term insurance plan, takaful companies in UAE provide Sharia-compliant term plans that are in accordance with Islamic financial laws coupled with the promise of a protective shield that we may need. Read through the article below to find out various aspects of term life insurance policy, its features, benefits and how you can buy one yourself in UAE.
A term insurance plan is a type of life insurance that covers the policyholder for a pre-specified tenure with pre-defined premiums. Since there is no cash value in a term insurance plan, the contract protects the policyholder for as long as he/she pays the insurance premium. In case of an untimely death, the policyholder’s beneficiaries are entitled to the due death benefits. However, there’s no life protection offered if the policyholder outlives the insurance tenure. You have the flexibility to choose the insurance tenure between 5 to 35 years.
In a term plan, once your premium is decided it remains the same throughout the insurance tenure. You may need to undertake a medical test while opting for a policy. However, there are several insurance providers offering term insurance plans without medical tests.
As mentioned above, a term insurance plan is a limited period life cover that protects the policyholder and his/her beneficiaries against unforeseen events. If the insured individual dies during the policy tenure, the insurer provides death benefits to the dependent family members to meet their expenses and maintain their lifestyle. If the policyholder outlives the insurance tenure, insurance company is liable to pay any benefits.
In order to receive the insurance benefits, the beneficiaries need to file an insurance claim by submitting supporting documents such as death and medical certificate along with the insurance contract.
In case of an untimely death, the beneficiaries of the policyholders receive the death benefits that can be used for meeting daily expenses, paying off loans, EMIs and education fee. So, a term insurance plan proves to be an important financial tool for the breadwinner of the family. Term insurance plans are laced with a variety of benefits that are listed below:
Term insurance 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.
Following is the list of best term insurance companies in the UAE offering term insurance plan
Insurance Company |
Term Plan |
Claim Settlement Ratio |
Policy Tenure |
Minimum Insurance Premium |
---|---|---|---|---|
AXA Insurance |
Term Life Plan |
97.35% |
Up to 35 years |
AED 312 per year |
Zurich Insurance |
International Term Assurance |
98.1% |
Up to 30 years |
AED 1050 per year |
Alliance Insurance |
Term Insurance Plan |
- |
Up to 30 years |
- |
Takaful Emarat |
Fixed Term Plan |
- |
Up to 25 years |
- |
Salama Insurance |
Hemayati Plus |
94% |
Up to 15 years |
- |
You get unique options to enhance your life protection with a term plan. Following are the key features of term insurance in UAE.
An ex-pat working in UAE also needs financial security for the dependent family members. Here are a few reasons for the ex-pats to buy a term insurance plan in UAE.
The type of deaths and life risks covered under the policy is commonly known as term insurance inclusion. If the beneficiaries file a claim against the policy inclusion, the company pays the assured sum. The policy inclusions mostly depend on your insurance provider, so you need to research and find the best term insurance plan suiting your requirements.
Following are the key inclusions of the term insurance plan in UAE.
Exclusions are the causes of death and life threats that are not covered under your term plan. If the policyholder dies due to the excluded reasons, the company will reject the insurance claim.
Following are the term insurance exclusions in UAE.
Selecting the best insurance plan as per your requirements can take effort and time. However, we have compiled a list of best term insurance plans in UAE along with their key features and benefits.
Features & Benefits of AXA Term Life Protect
Features & Benefits of Takaful Emarat Fixed Term Plan
Features & Benefits of Alliance Term Insurance
Features & Benefits of Zurich Term Assurance Plan
Types of Term Insurance | |
---|---|
Term Plan for Senior Citizens | Term Insurance for Spouse |
Term Insurance for Family | Term Insurance for NRI's |
There are various term insurance plans in UAE that you can choose as per your security needs and family obligations.
Term Insurance Riders |
Term Insurance Return of Premium |
Accidental Death Cover |
Critical Illness Cover |
To enhance and customise your term insurance plans, the insurance providers in UAE offer additional protection in the form of add-on riders. With a nominal increase in your premium, you can purchase these riders in addition to your base protection plan. Following are the add-on riders for term insurance plans in UAE.
In order to find the best term 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 term insurance plan in UAE.
The below gives the comparison between top term insurance plans in UAE
Term Insurance Plan |
Minimum Entry Age |
Maximum Entry Age |
Policy Tenure |
Assured Sum |
---|---|---|---|---|
AXA Term Life Protect |
18 years |
79 years |
1 year to 35 years |
Up to USD 50 million |
Takaful Emarat Fixed Term Plan |
18 years |
65 years |
5 years to 25 years |
As per the policyholder |
Alliance Term Insurance |
18 years |
70 years |
10 years to 30 years |
USD 250,000 |
Zurich Term Assurance Plan |
18 years |
74 years |
5 years to 35 years |
USD 20 million |
Before purchasing a term insurance plan, you need to a few fulfil a few criteria related to your age and residency. Along with affordability, the term plans have the easiest eligibility.
However, it may vary depending on the term insurance provider in UAE. Following are the common criteria you need to satisfy while purchasing a term insurance plan.
Here are the various eligibility criteria to buy a term insurance plan in UAE.
Particulars |
Eligibility |
---|---|
Minimum Entry Age |
18 years |
Maximum Entry Age |
65-79 years depending on the insurer |
Policy Tenure |
1 to 35 years |
Who can buy a term plan? |
Working Individuals Newly Married Couples Parents Senior Citizens |
Payout option |
Lump sum Monthly or yearly payout Lump sum with fixed regular payout |
Additional Riders |
Critical illnesses cover Accidental death cover Family income cover Permanent total disability cover Premium waiver cover |
Medical Test |
Depending on the insurer, you may require medical test |
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 term insurance plan in UAE.
The insurance companies in UAE provide convenient online and offline channels to purchase a term plan. You can buy a term life plan offline by visiting an insurance broker or a provider. Alternatively, you can also apply online for term insurance. Online purchase has numerous benefits over the offline method. You can easily compare various plans and find the best match for your life protection.
Here are a few means to buy a term insurance plan UAE.
Most people often find it difficult to decide the right time to buy a term insurance plan. The cost of insurance is cheaper when you are young. However, life security is more about your depending on family members and term insurance provides adequate financial support. So there is no specific age to buy term life insurance unless you belong to the acceptable age range.
To avail of the term insurance at reasonable rates you should purchase it before the age of 30 years. It can offer you numerous rebates and offers due to the following reasons.
Term insurance premiums are calculated based on your age, gender, health conditions and more. Considering so many factors while calculation makes the task complicated. However, you can use the term insurance calculator available at various insurance aggregating websites. By entering a few personal details, you can easily calculate your insurance premiums.
Following are the factors that affect your insurance premium
To find the best term insurance plan, you need to take following factors into account:
An online term insurance plan purchase can offer you the freedom of selecting the best plan and within your budget. However, while choosing a term insurance plan, you need to read the fine lines and get well acquainted with the terms and conditions. You can consider the following steps when choosing a term insurance plan online.
To help the beneficiaries manage the assured amount effectively, the insurance companies offer various payout options as mentioned below.
Insurance providers in the UAE offer an easy term insurance claim process. However, they need to ensure all the relevant documents and supporting proof is handy during the settlement. Following are the steps for the term insurance claim process in the UAE.
A term plan offers high coverage with nominal insurance cost. However, you need to decide the coverage amount depending on the forthcoming requirements of your family. After your demise, your family may inherit the debts and expenses left behind on your behalf. So, you need to take various factors into account and forecast your insurance amount. You can consider the following factors while deciding a term plan coverage amount.
Once you have outlined your coverage amount. You can use term insurance calculator to precisely determine the amount of term insurance cover you need and how much premium you need to pay.
Since term insurance has fixed tenure, an individual may confuse to choose the right tenure for their life plan. However, before opting for a plan, you need to take your protection needs into account. Here are a few things you should consider before choosing the right tenure for your term insurance.
Whatever the mode of income, individuals need to consider a sufficient amount for their beneficiaries and for the right tenure. When purchasing a term plan at a young age, you avail yourself of low premiums which remains unchanged. So, decide on a suitable tenure after which your dependent members won’t need security from you.
Car Insurance | Travel Insurance | Health Insurance | Life Insurance |
A term insurance plan is one of the most affordable life plans in the UAE. Despite the low premium, you get a high assured benefit of up to USD 50 million. In case of your untimely demise, the term insurance plan provides you with adequate benefits, financially assisting your family to meet their daily expenses
Companies in the UAE provide numerous insurance plans suiting your needs and protection requirements. Following are the types of term insurance plans in the UAE.
Convertible Term Insurance plan - With a convertible term insurance plan, you can shift your term life plan into a whole life insurance plan depending on your financial situation.
There are various factors that influence your term insurance plan in the UAE. Following are the key factors that affect your term life plan.
To get the best deal on a term insurance plan, you need to buy a policy online. With an online purchase, you can avail of up to 15% discount on the term plans, depending on your requirements and protections. Additionally, you can compare and find the best plan as per your financial needs.
Before purchasing your term plan, you need to outline your protection requirements. Once you forecast your security needs, you can easily find the best term insurance plan in the UAE.
Depending on your insurance provider, you need to be at least 18 years old to buy a term insurance plan in the UAE. Several insurance providers have an age requirement of 21 years. You need to verify the age criteria before buying a term plan in the UAE.
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.