Do You Get Your Money Back at the End of a Term Life Insurance?

How Term Insurance Works in the UAE?

Term insurance in the UAE is designed as a pure protection plan.

• If the policyholder passes away during the policy term – the family or nominated beneficiaries receive the sum assured
• If the policyholder survives the policy term – there is no maturity benefit or refund of premiums

This structure keeps premiums in the UAE among the lowest in the region, making it one of the most affordable ways to secure high-value life cover.

Example: A 35-year-old healthy non-smoker in Dubai can get AED 1 million life cover for as little as AED 800–1,200 per year – much cheaper than any savings-linked plan.

Why are Money Back Term Insurance Plans Not Available in the UAE?

There are three main reasons why term insurance with money back policy is not an option in the UAE —

Regulatory Framework

• The UAE Central Bank (which regulates the insurance sector after the merger of the Insurance Authority) keeps term coverage strictly protection-focused
• Mixing savings or refund benefits would blur the line between term plans and investment plans
   

Affordability Factor

UAE insurers prioritise maximum coverage at the lowest possible premium

• If money-back features were added, premiums would rise significantly, defeating the very advantage of affordability
   

Opportunity Cost for Policyholders

The premium difference between a regular term plan and a TROP plan is better invested in mutual funds, ETFs, or savings plans available in the UAE. This makes TROP less attractive in a market where investment options are widely accessible.

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Alternatives to Money Back Term Insurance in the UAE

If you want protection + savings, the smarter choice is to pair your UAE term plan with a dedicated savings or investment plan available in the market. So even if you outlive the plan, you get value from your policy.

This way, you enjoy the best of both worlds – low-cost life cover + wealth building for your future. Here are some popular alternatives —

1. Guaranteed Savings Plans

Offered by insurers like MetLife, Zurich, and HAYAH, these plans give you life cover and also help you save in a disciplined way. They come with assured maturity benefits, so you know exactly what you’ll receive at the end of the term. Guaranteed plans are ideal for expats who prefer low-risk, guaranteed returns.

2. Unit Linked Insurance Plans (ULIPs)

ULIP plans give both life insurance and investment in one plan. A portion of the money keeps your family protected, while the other part is invested in funds such as equity or debt. You can change the investment at any time, making the plan flexible and useful for building wealth.

3. Child Education Plans

Child education plans help parents save money for their child’s future studies. They provide the required funds at important stages of education and also ensure financial support if something happens to the parent.

4. Retirement & Pension Plans

Designed for long-term financial security, these plans help expats build a retirement fund while also offering life cover. Many options provide regular income post-retirement, ensuring steady cash flow for those without access to traditional pensions in the UAE

UAE vs Other Markets’ Term Insurance: Do You Get Money Back?

Here’s a better overview of term life coverage in terms of features —

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