Term Insurance Plans in UAE

Key Specifications of Term Life Insurance in UAE

Why Do You Need Term Life Insurance in UAE?    

With the fast-paced lifestyle in Dubai, people’s priorities around their families, finances, and well-being are changing. This has also encouraged more people to think of term insurance as a key part of their financial planning. 

Here’s a list of some common issues and how term coverage can help you tackle them —

Compare Best Term Insurance Plans Dubai, UAE 2025

Here’s the rundown of the best term life insurance plans in UAE for your reference —

Types of Term Life Insurance in UAE – Which One Should You Buy?

There are various types of term plans in UAE that you can choose as per your security needs and family obligations:

How Does Term Insurance in UAE Work?

A term life insurance policy provides life cover for a fixed policy tenure

This period could be anywhere between 5 years and 35 years

You pay a premium in exchange for life cover, which is usually 10-20 times the annual income

If you pass away during policy tenure, the beneficiary or nominee receives a death benefit

If you survive, the policy simply lapses.

The earlier you buy the policy, the lower the premium and the higher the life cover. You can also go for riders at your convenience and budget.

How Term Insurance Plan Works?

 

27 Years

Meet Sadiq, who has a life insurance cover of AED 1 million for 30 years

 

27 to 57 years

He pays the premium regularly for the next 30 years

 

Before Turning 57

Unfortunately, he passed away, and the life cover is payable to his nominee, his wife

 

Filing Claim

Sadiq'ss wife files a claim

 

After Filing Claim

She receives the claim, and it helps her live a secured life.

When Should I Purchase Term Life Insurance in UAE?

Term insurance premiums increase as you age. Buying early helps you lock in the lowest price. The mentioned figures are for a male living in Dubai who has a monthly income of AED 9,000 and is looking for AED 1 million coverage. 

Insight: Smokers pay far higher premiums because of elevated health risks.

*For reference only — actual premiums may vary as per your age, health conditions, and more

Best Life Stages to Buy Term Insurance

1. When You Start Earning: Financial independence begins. Premiums are the lowest.

2. Starting a Family: Your spouse depends on your income. Term insurance reduces financial stress.

3. Taking a Home Loan: The payout helps your family clear outstanding loans.

4. Moving to Another Country: NRIs in the UAE use term life insurance to protect family members back home.

Term Life Insurance Calculator

Wondering how to calculate your insurance premium? You can always use a term insurance calculator. It is a free and easy-to-use tool that helps you estimate the premium for a policy based on your specific needs. 

You’ll need to provide basic details like your name, contact info, date of birth, income, gender, lifestyle habits, education, and occupation. Based on this information, the calculator recommends suitable policies and shows the approximate premium. You can then choose the coverage amount, policy term, payment frequency, and payout options.

It’s a useful way to compare options and make smart decisions, helping you choose the right policy that fits your financial goals and ensures your family’s future security.

Who Should Buy Term Insurance in Dubai, UAE?

If you are in Dubai and have dependent individuals — whether your children, spouse, or your parents — you should take term insurance seriously. It’s an affordable way of ensuring that your loved ones have sufficient funds for life even if you’re not there.

Let's see who exactly actually needs it —

Mistakes to Avoid When Buying Term Insurance in UAE

1. Buying Late

Many people delay buying term insurance, thinking they can do it ‘someday’. But the longer you wait, the higher your premium gets. In fact, you may even lose eligibility for a high life cover if health issues develop.

2. Choosing a Low Life Cover

Ideally, your life cover should be at least 15–20 times your annual income. This way, your family can manage expenses, loans, and long-term goals without financial stress.

3. Ignoring Riders

For a small extra premium, riders like critical illness, waiver of premium, or accidental death benefit can offer financial support when unexpected events occur.

4. Hiding or Withholding Information

Some people skip sharing medical or lifestyle details to get lower premiums, but this can backfire. If the insurer discovers missing information during claim verification, the claim can be denied.

Example: If a smoker hides their smoking habit, the insurer can easily trace it through medical records during a claim investigation and may reject the claim entirely.

How to Buy Term Insurance Online from Policybazaar.ae?

With Policybazaar.ae, getting the best term policy is just a matter of a few clicks. Here’s how we help you get the best term insurance in UAE in 5 simple steps:

1

Go to Policybazaar.ae and select term insurance from the topmost bar.

2

Fill in your basic details like name, age, phone number, etc. in the form on the right.

3

Click on 'view quotes' to see the most relevant term insurance quotes.

4

Compare and select the one that suits you the best.

5

Click on apply and follow the on-screen instructions.

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.

Why Buy Term Life Insurance from Policybazaar UAE?

PB UAE Experts helps you compare the best term insurance in UAE. With our tie-ups with the leading insurers, you can also enjoy more affordable premiums. Here’s what we do —

✔ Instant Policy Issuance

Buy your term insurance online and get your policy documents immediately — no waiting, no lengthy approvals.

✔ Compare Plans from Dozens of Insurers

Instead of switching between multiple websites, you can compare premiums, benefits, features, riders, and exclusions. All done in one place!

✔ 35+ Critical Illnesses Covered

Most plans include major illnesses like cancer, heart attack, stroke, and organ failure. You can even add riders to enhance protection.

✔ Worldwide Coverage

Ideal for UAE expatriates and frequent travellers. Your family gets financial protection even if life events happen abroad.

✔ Expert Advisors You Can Talk To

If you’re unsure which plan suits your income, age, or financial goals, Policybazaar.ae advisors help you choose objectively.

How to Get Term Insurance at the Best Price?

Listed below are a few steps that you can take to get the best term insurance in UAE at affordable premiums — 

• Start as early as possible: As we saw before, the younger you start, the lower your premiums. So even if you didn’t get a term life insurance policy earlier, it’s better to get it now rather than waiting for more time! 
• Maintain a healthy lifestyle: Regularly exercising, maintaining optimum BMI, and others can lead to a better life (and lower premiums too!). This is because insurance providers consider your health when assessing your premiums. 
• Give up smoking: Besides leading to various diseases, smoking can also increase your costs for term life insurance UAE quite a bit! 
  Note: In case you’ve been a smoker, don’t forget to disclose it to your insurer. Hiding information can lead to claim rejections later.
• Choose a suitable term and coverage: With the right policy tenure and coverage, you can fulfill your family’s requirements without stretching your budget.

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.

What is the Difference Between Term Insurance and Life Insurance?

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. 

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 whole life insurance or ULIPs.

Read More: Difference Between Term and Life Insurance

Term Insurance UAE & Dubai Payout Options

Can NRIs Buy Term Insurance in India?

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 –

• High life coverage at affordable premiums
• Flexible premium payment methods — lump sum or regular (monthly, quarterly, half-yearly, or annually)
• Financial security for the life assured’s family in case the former passes away during the policy tenure. 
• Flexibility to choose the policy tenure 
• Easy documentation process
• Option to customise the plan with additional riders – accidental death, waiver of premium, critical illness benefit, and more

Note that there are 2 factors to consider when buying an NRI term insurance policy –

• Policy tenure — NRIs should give the policy tenure a thorough thought when buying a term insurance plan. Usually, experts recommend that the coverage should be for at least till you are 65 years old. 
• Policy coverage — As an NRI, you should also consider the policy coverage amount. For this, take factors like inflation, expenses, debts, policy type, income, and other significant events into consideration. 

Documents Required to Purchase Term Life Insurance

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. 

• Emirates ID for UAE nationals and residents,
• Valid Passport for expats with a valid Emirates ID
• Utility bills for address proofs.

Additional Add-ons for Term Insurance in UAE

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 — 

Why Critical Illness Riders are Essential in the UAE?

Critical illnesses are becoming increasingly common due to lifestyle habits and stress. Having a rider ensures you get financial protection when treatment costs are highest. While your health policy can cover the medical treatments, it doesn’t help you with daily expenses. This can be especially important if you lose your job due to the illness.

A critical illness rider comes into play in such scenarios. It gives you a lump sum amount if you’re diagnosed with a critical illness. You can use this amount for day-to-day expenses, debt repayments, and other regular obligations.

Key UAE Facts

• 4,500 new cancer cases reported annually
• Cardiovascular diseases are among the leading causes of death
•  77% of deaths are caused by non-communicable diseases like cancer, diabetes & heart disease

Example: If someone in Dubai is diagnosed with a major cancer, they may have to take time off work for treatment. Their expenses can be anywhere near AED 300,000–500,000. While their health plan can cover the treatment, they may still find it hard to manage children’s school fees, ongoing debts, utility bills, and more. 

If the said individual had taken a critical illness rider, they would have received a lump sum amount. This could have reduced the financial burden of such non-medical expenses.

All of this makes it necessary to buy term insurance with the right riders!

Term Insurance FAQs

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