Term Insurance for Family in UAE: Top Plans & Benefits

With a guaranteed death benefit, term insurance can cover essential expenses like mortgage payments, children’s education, and daily living costs. This financial safety net offers peace of mind, knowing that your family will have the resources to maintain their lifestyle even in your absence.

All in all, getting a family term insurance policy is a practical step towards safeguarding your loved ones well-being. Read on to find out more about a term life insurance plan for a family!

What is a Family Term Insurance Plan?

A family term insurance plan is a life insurance policy that offers financial support to the family if the insured individual passes away. This policy can be customised with add-on riders like critical illness or accidental death benefits.

The plan provides a death benefit to the nominee if the policyholder dies within the policy period, which can range from 5 to 30 years or even more. Policyholders can also extend the coverage period or switch to a whole life insurance plan for lifetime protection.

Best Term Insurance Plans in UAE

Some of the best Term Insurance quotes in UAE & Dubai are:

Policy Term

Age

Cover

Payment Frequency

YearlyMonthly

How Does Family Term Insurance Plans Work?

Family term insurance provides life coverage to the policyholder and their family members — such as a spouse or children — for a set period (typically 5 to 30 years or more). It pays a death benefit if the policyholder passes away during this time.

This is how it works —

Enrollment - The policyholder selects the coverage amount, term length, premiums, and beneficiaries.
Premium Payment - Regular premiums are paid, either monthly or annually, to keep the policy active.
Coverage Activation - Coverage begins once premiums are paid, insuring the policyholder and their family.
Death Benefit Payout - If the policyholder dies during the term, the death benefit is paid to the beneficiaries. This amount can be used to cover expenses like funeral costs, outstanding debts, daily expenses, and more.

What are the Features of Family Term Life Insurance?

Here are some top features of the best family term insurance in UAE that you should look for —

1. Family Protection

A family term insurance plan ensures your loved ones are financially protected if something happens to you. The insurer pays a lump sum (sum assured) to your family so they can manage daily expenses, debts, or future goals.

2. Affordable Premiums

These plans are more budget-friendly compared to other life insurance policies. You can even use an online term insurance premium calculator to compare costs and choose a plan that fits your budget.

3. Large Coverage at Low Cost

Family term insurance plans offer high coverage amounts for a relatively low premium, making it possible to secure your family’s future without straining your finances.

4. Flexible Policy Tenure

You can choose how long you want your policy to last, from 5 years up to 35–40 years. Some insurers even provide whole-life cover (up to 99/100 years).

5. Flexible Premium Payment

Insurers allow you to pay premiums in different ways — monthly, quarterly, half-yearly, yearly, or even as a one-time lump sum.

6. Add-On Riders for Extra Protection

You can enhance your family term insurance policy by adding riders like —

Critical Illness Cover
Accidental Death Benefit
Disability Rider
Waiver of Premium
Hospital Care Rider

7. Risk & Debt Management

The lump sum benefit can also be used to pay off outstanding loans or liabilities, so your family does not carry the burden in your absence.

What are the Benefits of a Family Term Insurance Plan?

Mentioned below are the major advantages of family term insurance —

Affordable Coverage - Family term plans have affordable premiums even with high life coverage amounts. This makes them a great option for families on a budget.
Death Benefit - The primary objective of a term insurance plan for a family is to secure the life financially assured’s family if the former passes away during the plan tenure. The death benefit covers end-of-life expenses, works as an income replacement, or pays off debts.
Flexibility - Family term policies offer flexibility in selecting the premium methods and payout options.
Coverage for Specific Tenure - With a family term insurance plan, you get cover for a predetermined tenure. As a policyholder, you can select the tenure that suits your financial objectives and requirements.
Enables Estate Planning - Family term plans can be used to plan an estate or will and provide death benefits to the beneficiaries.
Helps Family Maintain Lifestyle - Families usually have specific lifestyles and expenses tied to their income. When an earning member of the family passes away, family term insurance benefits help the survivors maintain their standard of living. The sum assured is generally significant enough to support their needs.

What are the Types of the Best Term Insurance Plan for Families?

When choosing a term insurance plan for your family, it’s important to understand the different types available. Here’s a quick comparison to help you decide which one fits your needs best —

Type	Key Features	Best For	Limitations
Level Term Plan	Fixed premium and sum assured throughout policy term. Lump sum paid to nominee on death	Families wanting affordable, simple life cover	No survival or maturity benefit
Increasing Term Plan	Coverage increases yearly to beat inflation	Families needing rising protection over time	Higher initial premiums, no maturity benefit
Decreasing Term Plan	Coverage reduces annually, even reaching zero at the end. Premiums stay fixed	Individuals with reducing debts like home/car loans	Not suitable for broad family protection
Convertible Term Plan	Can be converted into life insurance or endowment plan later	Those seeking flexibility for future needs/health risks	Premiums slightly higher

Ultimately, the right family term insurance plan in UAE depends on your family’s financial goals. Decide you want affordable cover, growing protection, savings, or flexibility for the future.

Who Should Buy a Family Term Insurance Plan?

Anyone can buy a family term life insurance plan based on their requirements. Here’s a list of individuals who can buy this plan —

Family Dependents - Term insurance is essential for anyone with dependents, such as a spouse, children, or elderly parents. This is because it provides financial support in case of the policyholder's absence.
Breadwinners - It ensures financial stability for families relying on the policyholder’s income.
Debt Holders - Term policies cover outstanding loans, like car or home loans, relieving the family from financial burdens.
Single Parents - These plans offer financial security for children solely dependent on one parent, ensuring their future is protected.

Why Should Sole Earners Apply for a Term Plan for Family?
A family term insurance plan provides crucial financial security against life's uncertainties, especially for sole earners. It ensures that family members receive a substantial payout if the policyholder passes away. The primary reasons are that it — Acts as income replacement to cover living expenses and maintain the family's current lifestyle Helps pay off existing debts and financial liabilities, preventing a burden on the family Provides funds for dependents' needs, such as children's education and healthcare Offers additional coverage for critical and terminal illnesses, with separate payouts for medical expenses

Why Should Sole Earners Apply for a Term Plan for Family?

A family term insurance plan provides crucial financial security against life's uncertainties, especially for sole earners. It ensures that family members receive a substantial payout if the policyholder passes away.

The primary reasons are that it —

Acts as income replacement to cover living expenses and maintain the family's current lifestyle
Helps pay off existing debts and financial liabilities, preventing a burden on the family
Provides funds for dependents' needs, such as children's education and healthcare
Offers additional coverage for critical and terminal illnesses, with separate payouts for medical expenses

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How to Select the Best Family Term Insurance Plan in UAE?

Here are some key points to consider when buying a term insurance plan for your family —

Coverage Amount - Choose a sum assured that meets your family’s financial needs, considering monthly expenses and annual income.
Claim Settlement Ratio - Go for an insurance company with a high claim settlement ratio, which indicates reliable claim payouts.
Riders or Add-ons - Look for additional benefits like critical illness or accidental death coverage to customise your policy.
Claim Settlement Process - Check customer reviews and policy ratings to ensure a smooth and hassle-free claims process, avoiding excessive paperwork and delays.

Where Should You Apply for Family Term Life Insurance in the UAE?

You can buy a family term insurance plan in the UAE on Policybazaar.ae. This is a one-stop portal that offers the best insurance plans from the leading insurance companies in the UAE. You can always look for individual term plans in just a few minutes.

Here’s what you get when you apply for family term life insurance on Policybazaar UAE —

Compare and select the plan that meets your needs
Round-the-clock customer care service
Customisable insurance plans
Assistance from industry experts in case you get confused

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Frequently Asked Questions

Individual term insurance covers just one person, while family term insurance extends protection to multiple members under a single plan. The premium and sum assured vary depending on whether it’s for one individual or the whole family.

A family term insurance plan generally covers your spouse, children, and dependent parents, subject to the insurer’s eligibility rules.

Yes, couples can opt for joint life term insurance, where both husband and wife are covered under one plan. This offers convenience, cost savings, and shared financial security.

Your sum assured should be based on future household expenses, existing loans, and long-term financial goals. This ensures your family’s lifestyle and commitments remain secure in your absence.

Yes, you can buy a term plan for family members if you are an earning member. If the life assured passes away during the policy tenure, the beneficiaries will get the lump sum of the sum assured.

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