Term Insurance

Buy a term plan and secure your family

Term Insurance in UAE
Secure your family’s future Flat 35% OFF on Term Insurance

T&C Apply

Select Gender
  • Male
  • Female

Top Term Plans

AXA - Life Protect
Term Policy 10 Years
  • Life Cover Upto AED 3 Million
  • Accident From Day One AED 300,000
  • Sickness From Day One AED 300,00
  • COVID-19 Coverage : Yes
  • Medical Checkup : Not Required
  • Worldwide Coverage : Yes
Starting from AED 195 Yearly
Takaful Emarat - Fixed term
Term Policy 10 Years
  • Life Cover Upto AED 3 Million
  • Accident From Day One AED 300,000
  • Sickness From Day One AED 300,000
  • COVID-19 Coverage : Yes
  • Pre Existing Disease Coverage : Subject to Insurer Approval
  • Worldwide Coverage : Yes
Starting from AED 215 Yearly
Noor Takaful - Pure Protection
Term Policy 10 Years
  • Life Cover Upto AED 3 Million
  • Accident From Day One AED 300,000
  • Sickness From Day One AED 300,000
  • COVID-19 Coverage : Yes
  • Pre Existing Disease Coverage: Subject to Insurer Approval
  • Worldwide Coverage : Yes
Starting from AED 600 Yearly
Union Insurance Smart Term
Term Policy 10 Years
  • Life Cover AED 250,000
  • Accident From Day One 100% of Sum Assured
  • COVID-19 Coverage : After 30 days
  • Pre Existing Disease Coverage: Pre-approved upto AED 1,000,000
  • Worldwide Coverage : Yes
  • Maturity Bonus Payout : No
  • Medical Checkup : Not Required
Starting from AED 600 Yearly
National Life Term Plan
Term Policy 10 Years
  • Life Cover AED 350,000
  • Accident From Day One AED 350,000
  • Sickness From Day One AED 350,000
  • COVID-19 Coverage : After 30 days
  • Pre Existing Disease Coverage : Subject to Insurer Approval
  • Worldwide Coverage : Yes
  • Maturity Bonus Payout : No
Starting from AED 260 Yearly
Noor Takaful Pure Protection Cashback
Term Policy 10 Years
  • Life Cover AED 350,000
  • Accident From Day One AED 350,000
  • Sickness From Day One AED 350,000
  • COVID-19 Coverage : After 30 days
  • Pre Existing Disease Coverage : Subject to Insurer Approval
  • Worldwide Coverage : Yes
  • Maturity Bonus Payout : No
Starting from AED 260 Yearly
See More Quotes >>>

Term Insurance in UAE

Insurance providers in the 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 the 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 the UAE.

What is a Term Insurance Plan?

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.

How does Term Life Insurance Plan Work?

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: 

  • You can avail comprehensive coverage through a term insurance plan in exchange for nominal premiums. 
  • Since it is a basic protection plan, you don’t need to invest in a lot of efforts to understand the policy terms and conditions. 
  • These plan make a suitable choice for individuals on a budget. 
  • With life protection, you get several riders known as add-ons to customise and enhance your protection.
  • A term insurance plan secures your loans and mortgage in case of untimely death, eliminating the risk of financial burden on your family.  
  • Several term plans include critical and terminal illnesses cover. Depending on your family history and your susceptibility, you can opt for such plans to enhance your protection. 
  • You can opt for various types of term insurance plans such as decreasing or level term insurance depending on your requirements.  
  • Despite being affordable, term insurance provides worldwide coverage. Meaning, you stay protected wherever you go.  
  • With a term insurance plan, you also get a premium waiver in case of permanent disability while your protection is still active. 
  • While buying a term insurance plan online, you get an additional 10%-15% discount. 

Who Should Buy a Term Insurance Plan?

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. 

  • Young Professional - Young professionals who started working recently have lesser liabilities. It is the best time for them to choose a term insurance plan since they can avail of high insurance benefits with low premiums. 
  • Parents - Being the sole earner of the family, parents need term insurance to protect their dependents against unfortunate events and secure them financially. 
  • Newly Married Couple - A term insurance plan protects the spouse and helps him/her to cope with the situation financial even after your demise. Additionally, term insurance for spouses can secure both husband and wife within a single plan, insuring a high death benefit. 
  • Self Employed Individuals - Being a self-employed individual, you have dual obligations. One towards your loved ones and the other towards your business. The term insurance benefits can help secure your venture and your dependent family members. 
  • Working Women and Single Parents -  Working women and single parents should consider a term insurance plan to secure their loved ones from unforeseen situations. 

Best Term Insurance Plan in UAE

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

MetLife Insurance

Live Life Plan

98.17%

Up to 30 years

AED 918 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

-

Key Features & Benefits of Term Insurance Plans in the UAE

You get unique options to enhance your life protection with a term plan. Following are the key features of term insurance in the UAE. 

  • Flexible Tenure - Depending on your age, you can opt for term insurance plans with flexible tenures starting 5 years to 35 years. However, the insurance premiums increase with your age so, it is better to opt for a term insurance plan before you’re 30. 
  • Flexible-Premium Payment Options - While buying a term insurance plan, you get flexible premium payment options. You can pay your premiums in monthly, half-yearly or annual instalments. In addition, you can also pay your premiums lump-sum for the whole tenure. 
  • Easy to Buy - Term insurance plans are straightforward with lenient criteria and conditions, making your insurance application quick and easy. Other life insurance plans such as whole life insurance or an endowment plan include an investment component and generate cash value on maturity. These factors make life insurance complicated to understand and buy. In contrast, term insurance secures you against your premiums without any complicated criteria. Additionally, several term insurance plans don’t require prior medical check-ups so, you can directly buy a plan by visiting the insurance provider’s website online. 
  • High Insured Sum - In comparison to the premiums you pay, term insurance plans provide high death benefits if the policyholder dies within the insurance tenure. In the UAE, you can opt for a term insurance plan under AED 200 with a high coverage amount of up to AED 5 million. 
  • Flexible Payout Options - As a policyholder, you can opt for lump-sum payments or staggered payment options, depending on your requirements. With a lump-sum payment, the beneficiaries receive the insurance benefits at once. While with a staggered payment option, the nominees receive a regular payment. In case of your death, the insurer pays as per the chosen option. In addition, the beneficiaries can also choose the payout mode. 
  • Premium Waiver - In case of permanent disability causing a loss of employment, the insurer offers a premium waiver. With this waiver option, the policyholder is not required to pay a premium while still availing of the protection until the pre-specified tenure. 
  • Rebates and Offers - Individuals with a healthy lifestyle can avail of numerous offers and discounts when purchasing term insurance plans. Female and non-smoking individuals can enjoy low premiums with a higher sum insured since they possess a lower risk of developing a life-threatening health condition.

Why Should an Expats Buy a Term Insurance Plan?

An ex-pat working in the 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 the UAE.

  • Term insurance plans are affordable and easy to understand. As long as you pay the premiums, you get the term life protection. 
  • A few international insurance companies offer worldwide coverage and also allow the transfer of the policy to the home country. You can conveniently take your policy along when moving out of the UAE. 
  • Most insurance providers accept term insurance premiums in multiple currencies such as USD, GBP, and EUR apart from UAE dirhams. 
  • Term insurance provides accidental death benefits, including the expenses of repatriation. In case of any mishap, the cost of transporting the bodily remains is not borne by the family members.

Term Insurance Plans Inclusions

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 the UAE

  • Death due to natural causes or medical conditions. 
  • Death due to accidents
  • On diagnosis of a terminal illness with less than 12 months of survival period, 
  • Diagnosis of critical illnesses 
  • Permanent and total disability during the insurance tenure,
  • Premium waiver in case of total disability due to sickness or accident,

Term Insurance Plan Exclusions

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 the UAE. 

  • Death after the maturity of term insurance, 
  • Death due to an undisclosed or pre-existing health condition,
  • Claims against lapsed insurance,
  • Death of due to foreign invasions, wars, or warlike situations,
  • Death due to suicides,
  • Death as a result of criminal activity under the UAE laws,
  • Death caused due to sexually transmitted diseases like HIV-AIDS,
  • Death due to alcohol or drug abuse,
  • Death due to pregnancy-related complications,

Best Insurance Companies Offering the Term Insurance in UAE & Dubai

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 the UAE along with their key features and benefits.

AXA Term Life Protect

Features & Benefits of AXA Term Life Protect

  • With an AXA Term Insurance Plan, you can receive coverages of up to USD 50 million
  • Along with the life cover, you receive the following benefits
    • Terminal Illness cover
    • Total Permanent disability cover
    • Premium waiver in case of disability
  • The policy also offers free temporary life cover that starts right after your application until your is active. 
  • The term insurance plan covers your dependent members after your unforeseen demise.
  • You can also use the AXA Term Life to secure your loans and mortgages. 
  • To secure your business, you can also include it as Keyperson insurance. 
  • With AXA Term Life Protect, you get flexible tenure ranging from 1 to 35 years. 
  • Along with monthly payments, you can pay your premiums half-yearly, annually, or in a lump sum.
  • You can conveniently pay your insurance premiums in AED and USD
  • Once the premiums are decided, it remains the same for the entire policy tenure. 

Metlife Live Life Plan

Features & Benefits of Metlife Live Life Plan

  • With Metlife Live Life term plan, you can avail yourself of coverage of up to USD 50 million.
  • With the basic life cover, you get additional riders such as-
    • Accelerated critical illness cover
    • Permanent total disability cover
    • Accidental death cover
    • Premium waiver cover
    • Health cover abroad
    • Terminal Illness benefits
  • With Metlife Live Life plan, you get flexible tenure from 5 to 30 years. 
  • You can conveniently pay your premiums in various AED, USD, GBP or EUR.
  • The company offers flexible premium payment options in monthly, half-yearly, yearly and lumpsum payments. 
  • With a level term plan, you can secure your dependent family members against your untimely death. 
  • With a decreasing term plan, you can secure your loans and mortgages and remove the financial burden from your family members.  
  • You can transfer this term plan worldwide. 

Takaful Emarat Fixed Term Plan

Features & Benefits of Takaful Emarat Fixed Term Plan

  • Takaful Emarat fixed term plan is one of the most popular term plans in the UAE. 
  • You can choose your protection tenure between 5 to 25 years. 
  • The insurance coverage remains the same throughout the insurance tenure. 
  • Along with the basic term plan, you get the following additional coverage - 
    • Critical illness cover
    • Accidental death cover
    • Permanent total disability cover
    • Partial disability cover
  • You can conveniently pay your insurance premium in AED and USD.
  • As a policyholder, you get surplus sharing from the takaful pool

Alliance Term Insurance

Features & Benefits of Alliance Term Insurance

  • Alliance Term Insurance offers life coverage of up to USD 250,000 against the unfortunate death of the policyholder.
  • With Alliance Term Insurance, you get flexible term insurance from 5 to 30 years. 
  • The company offers a variety of term insurance plans based on your requirements such as:
    • Level Term Insurance
    • Executive Term Insurance
    • Convertible Term Insurance
    • Limited-Term Plan
  • With Alliance Solidarity Plan, you can secure your partner within the same plan
  • Depending on your insurance needs, you can choose the type of plan suiting your need within your budget.  

Zurich Term Assurance Plan

Features & Benefits of Zurich Term Assurance Plan

  • Zurich term insurance offers two types of term plans i.e - ITA (International Term Assurance) and IDTA (International Decreasing Term Assurance). 
  • The insurance cover offers flexible tenure of up to 35 years and, you can choose the coverage term at your convenience. 
  • As a policyholder, you can choose your dependent family member to receive the benefits or the bank to repay your loan or mortgage. 
  • The policy covers critical illnesses such as cancer, heart attack, strokes or more.
  • To pay your premiums, you can choose monthly, yearly installments. 
  • You can also cover your spouse within the same insurance plan. 
  • In case of accidental events, you can secure your dependent member against your disabilities. 
  • The policy accepts premiums in multiple foreign currencies. 
  • As an additional rider, you can add a premium waiver that revokes your premiums in case of disability causing loss of income. 
Types of Term Insurance
Term Plan for Senior Citizens Term Insurance for Spouse
Term Insurance for Family Term Insurance for NRI's

Types of Term Insurance Plans

There are various term insurance plans in the UAE that you can choose as per your security needs and family obligations. 

  • Level Term Insurance - Level term insurance is the most common term plan in the UAE. In level term insurance, the premium is pre-decided and remains unchanged throughout the tenure. Among all the term insurance plans, a level term plan is the cheapest in the UAE. 
  • Increasing Term Plan - An increasing term insurance plan is a discrete term plan that increases your assured sum every year at a specific rate. The rate of increment is pre-defined and disclosed to the policyholder at the time of purchasing the plan. The increasing term insurance plans are best suited for individuals with changing life situations since the assured sum increases tackling the inflation. The insurance premium may or may not change over the period, depending on your insurance provider. 
  • Decreasing Term Plan - In contrast to increasing term plans, decreasing term insurance reduces the assured sum with every passing year. Again, the declining rate of the assured sum is pre-specified depending on your age and health during the insurance purchase. Decreasing term plan is suited for individuals with active loans or mortgages. Such term plans work on the notion that an individual’s liability decreases with his/her age, including the need for a higher assured sum.
  • Return of Premium Term Insurance - Return of premium term insurance is a relatively new term insurance plan that provides a saving component, unlike conventional term insurance. In the event of you outliving the insurance tenure, all the accrued premium until maturity is paid back, offering an attractive savings option with life protection. However, to acquire your premiums back, you need to make zero claims during the insurance tenure. 
  • Convertible Term Insurance - With a convertible term insurance plan, you get the option of converting your policy into whole life insurance, endowment or money back plan. Individuals with changing financial situations can opt for convertible term insurance. To convert your plan, the insurer may require additional documents or medical check-ups as per the policy requirements.    
Term Insurance Riders
Term Insurance Return of Premium
Accidental Death Cover
Critical Illness Cover

Types of Riders for Term Insurance

To enhance and customise your term insurance plans, the insurance providers in the 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 the UAE. 

  • Critical Illness cover - With a critical illness cover, the company secures you against life-threatening illnesses such as cancer, heart and lung diseases etc. On diagnosis of a critical illness, the company bears the expenses of treatment, medications, and hospitalisation. If the policyholder dies during the treatment, the company pays the assured sum. 
  • Accidental Death Cover - If you opt for an accidental death cover, the insurance company provides an extra amount in addition to the death benefits in case you die due to an accident. The accidental death benefit is calculated based on the base plan and it may have an upper payable limit, depending on the insurance company.
  • Terminal Illness Cover - With a terminal illness cover, your beneficiaries would receive a fraction of the assured sum in case, you have been diagnosed with a terminal illness. The amount helps the policyholder’s family members to cope with situations and meet urgent medical expenses. Again, the coverage amount in the terminal illness cover depends on your term insurance assured sum.  
  • Permanent Disability Cover - When you purchase a permanent disability cover, the insurer compensates your income for up to 10 years for the loss of employment. The amount is paid as a percentage of your assured sum. With a permanent disability cover, you can ensure that your family maintains the prior lifestyle even during unforeseen situations. 
  • Premium Waiver Cover - In case of accidents or sicknesses resulting in permanent disability, you might not be able to work or generate income. With a premium waiver rider, the insurer revokes your subsequent premiums while the policy remains active until the pre-decided tenure.  
  • Income Benefit Add-on - With an income benefit add-on, your beneficiaries get regular income every year for up to 10 years in addition to the assured sum following your death.

Riders for Term Insurance - Policybazaar uae

How to Compare Term Insurance Plan in the 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 the UAE. 

  1. Claim Settlement Ratio: It is the ratio between the claims made and the claims settled with a year. With a company having a higher claim settlement ratio, you get the assurance that your dependent family members will receive the insurance benefits with ease after you are gone. In addition, you also need to ensure that a significant number of claims are filed, only then you can get a clearer picture. While selecting the best term insurance plan, take the claim settlement ratio into account, as it outlines the reliability of your plan. 
  2. Solvency Ratio: The solvency ratio informs about your insurer’s capability to settle the claims during unforeseen circumstances. During natural disasters, an insurance company receives a large number of claims and, in such cases solvency ratio becomes crucial. The insurer that you choose needs to have enough capital to handle and settle a large number of claims simultaneously. Your family’s security depends on the financial security of your insurance provider, therefore consider this factor while choosing your term insurance plan.  
  3. Critical Illness Cover: Several term insurance companies provide critical illness cover along with a basic life plan. Since a critical illness treatment can cripple your family savings, you need to ensure that an insurance provider covers the hospitalisation and medical expenses of illnesses such as heart and lungs disease, cancer, diabetes, etc. 
  4. Additional Covers available: With additional covers, you can customise your term insurance plan as per your protection requirements. You don’t need to buy a comprehensive plan and pay for unnecessary benefits if you have the freedom to choose your protection. You can buy additional covers that are relevant to you with your basic plan with a nominal premium rise. 

Compare Best Term Plans in the UAE

The below gives the comparison between top term insurance plans in the 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

Metlife Live Life Plan

20 years

75 years

5 years to 30 years

Up to USD 50 million for residents

Up to USD 5 million for non-residents

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

Compare Term Plan - Policybazaar uae

Term Insurance Plan Eligibility Criteria

term life insurance price with age

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 the UAE. Following are the common criteria you need to satisfy while purchasing a term insurance plan. 

  • Age - To buy a term plan in the UAE, you need to be at least 18 years old or above. Several providers have a minimum age requirement of 21 years. You need to verify the age requirements before purchasing a term plan. 
  • Nationality - You should be a UAE national or a resident with a valid UAE resident visa. During a term plan purchase, you need to produce a few documents to certify your age and residency details.

Common Eligibility Criteria to Buy Term Insurance Plans

Here are the various eligibility criteria to buy a term insurance plan in the 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

 

Documents Required to Purchase a Term Life Insurance

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 the UAE. 

  • Emirates ID for UAE nationals and residents,
  • Valid Passport ID for ex-pats with a valid Emirates visa
  • Utility bills for address proofs,

How to Purchase a Term Insurance Plan in the UAE?

The insurance companies in the 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 in the UAE. 

  • Online Purchase - To purchase a term insurance plan online, you need to visit the official website of an insurance provider or log on to Policybazaar.ae. Subsequently, compare and select the best term insurance plan meeting your needs. Enter your personal details and submit the application. Later, the insurance representative will contact you for further processes. An online term insurance purchase can offer you additional discounts, offers and rebates. 
  • Offline Purchase - For offline purchases, you can carry your documents to an insurance provider or a broker and discuss your protection requirements. The representative would provide you with various suitable term insurance options. You can choose the plan and pay your premium to avail of your life security. 

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. 

  • As a young adult, you are healthy and possess a lesser risk to the insurer. So you can enjoy discounted premiums. 
  • It is less likely to develop any lifestyle habit such as smoking and consuming alcohol. It reduces the risk of contracting any deadly disease and helps in reducing the insurance cost. 
  • Young adults have lesser liabilities owing to low expenses and reducing the chances of defaulting on insurance premiums. 

What is a term insurance premium calculator?

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.

What Factors affects your Term Insurance Premiums?

Following are the factors that affect your insurance premium 

  • Health Condition - Your health condition is an important factor that decides the premium of your term insurance. That’s why you need to undertake a thorough medical examination before buying a term insurance plan. A healthy individual pays a lesser premium since he/she possesses a lower risk to the insurance provider in comparison to an individual with a pre-existing condition. Based on your medical reports, the company forecasts the risks and the disease you can contract in future and the underwriters then determine the exact insurance premium you need to pay in order to avail of a term life plan.
  • Age - Age is another important factor taken into account. A young individual is healthy in comparison to an old policy buyer and possesses lesser risks of dying prematurely. For this reason, the policy premium increases with the age of the applicant universally. Hence, it is advisable to buy a term insurance plan at a young age to enjoy various rebates and discounts on the term insurance cost in the UAE. 
  • Smoking Habit and Tobacco Consumption - Smoking tobacco and alcohol consumption can also shoot your insurance premiums up for the fact that these are the root cause of various illnesses, including cancer and organ failure. For smokers, the risk of acquiring cancer is 25 times more than for a non-smoker. So, it is advisable to stop your smoking habits years prior to buying term life insurance.  
  • Family History of Health Issue - It is not a very significant factor but the insurer may be interested to know the family history of health condition. Using your family’s medical record, the insurance provider can forecast your susceptibility to acquiring a disease. Your insurance premium may rise if you are likely to contract any disease in the future. 
  • Insurance Benefits - Insurance benefits are the total sum your beneficiaries receive during an unforeseen event. Depending on the assured amount, the insurance company decides the premium. However, term insurance plans are affordable and pay a high assured sum with nominal monthly premiums. You should consider the amount that would be enough to cover your family’s expenses after your demise. 
  • Occupation - While deciding your premiums, the insurer also takes your occupation into account. If you are employed in a profession like oil mining, construction, underwater drilling where you are prone to life risk, so your insurance provider increases your premiums. The cost of your term insurance may also vary depending on the insurance provider. 

Complete Guide to Buy a Term Insurance Plan

To find the best term insurance plan, you need to take following factors into account:

  1. Claim Settlement Ratio - It is the ratio between the number of claim filed and total number of claims settled by an insurer. With a high claim settlement ratio, you can ensure that your claim applications have less chances of rejection and the insurer has robust settlement mechanism.
  2. Solvency Ratio - In case of calamities where large claims are made, it becomes tough for the insurance companies to settle all the claim at once. Solvency ratio defines the capability of your insurer to settle claims in most adverse situation. A company with high solvency ratio is reliable and must be preferred over the others. 
  3. Add-on Riders - Add-on riders enhance your life coverage. You can customise your insurance plan with additional riders at nominal premiums. While buying a term insurance plan, you should consider the variety of add-on riders that are provided by your insurer. 
  4. Company’s Reliabilty - With shallow research you can find the details and reviews about an insurance company. Before purchasing a term insurance plan, you must consider the reputation and stability of the insurance company. 
  5. In-Built Terminal Illness Cover - Several insurance providers in-built terminal illness cover that helps you revoke your insurance premiums up on diagnosis. Additionally, you may claim for a portion of your insurance benefits to meet treatment expenses. While purchasing a term plan, search for companies offering terminal illness benefits. 

Five Steps to Finding the Right Online Term Insurance Plan in the UAE 

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. 

  1. Choose a Suitable Coverage Amount - The first and the foremost thing you need to do is to choose your coverage amount. By outlining the insurance coverage, you can proceed with the best term insurance options available. 
  2. Compare Available Plans - Once you have gathered the list of term plans suiting your coverage requirements, you can compare the plans and go through the terms and conditions of the policy. Additionally, check for the additional features and benefits that are offered in the plan.
  3. Additional Riders - Along with the life cover, you get several additional rider according to your requirements. Choose the term insurance plans that offer cost-effective riders based on your needs. 
  4. Find the Best Quotes - While purchasing a term plan, you also need to be economical and not pay for coverages that you may not require. Depending on your protection needs, find the best quotes by visiting the insurer’s website or insurance aggregators like policybazaar.ae. 
  5. Ease of Filling Claim - While purchasing an insurance plan online, you should also need to consider the ease of claim settlement. With an easy claim process, your dependents would focus on other important issues during tough times that to face the hassles of claim settlement process. 

Term Insurance Payout Options

To help the beneficiaries manage the assured amount effectively, the insurance companies offer various payout options as mentioned below. 

  • One-time Lumpsum Payout - With a one-time lump-sum payment, the beneficiaries can avail of 100% of death benefits at once. In case of loan or mortgage repayment, you can opt for a lumpsum payment.  
  • Lumpsum Payment with Fixed Regular Payout - With a combination of fixed and regular payout options, a beneficiary receives 100% of assured death benefit along with a fixed regular payout (monthly or yearly) for up to 10 years following the claim. A policyholder needs to decide this payout option while purchasing the term insurance plan. 
  • Fixed Regular Payout - As the name suggests, in a fixed regular payout option, the insurer pays a fraction of the assured sum on a monthly or yearly basis for up to 10 years or as decided by the policyholder following the settlement. 

Term Insurance Claim Process

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 Duly Filled Claim Form - To file a claim, beneficiaries need to submit a duly filled claim settlement form. You need to visit the official website of the insurance provider to download the claim form. 
  • Submit the Supporting Documents - While filling the claim form, nominees need to submit the supporting documents along with the claim form. It must include the following
    • Death certificate, 
    • Documents mentioning the cause of death, 
    • Medical reports
    • In case of death in a foreign country, a valid death certificate issued from the UAE embassy needs to be submitted. 
  • Verification and Waiting Period - After all your documents have been submitted, the insurer performs a verification before settling the claim. It is a standard process and can take a while. However, if you have submitted all the supporting documents, you get a hassle-free claim settlement. The time that the insurer takes to complete the settlement process is known as a waiting period. With all your process done, you may expect a waiting period of 4-5 business days. 
  • Settlement Process - Once the insurance company verifies all your information based on the submitted documents, and finds them satisfactory. It disburses the amounts to the beneficiaries. 

How Much Term Insurance Cover Do You Need?

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. 

  • Replacing income - Insurance benefits replace your income for the dependents after your demise. You need to decide the amount of income they in the future should the worst happen. 
  • Debt - If you have a loan or a mortgage, you should add this amount in your insurance benefits to relieve your family from financial burdens after your demise. The death benefits would help repay your loan and, your family would cope with situation effectively.
  • Future Expense - Future expenses may include your kids education, marriage, or sudden monetary needs etc. You need to take future expenses into account while deciding the 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. 

Term life Cover - Policybazaar uae

What Should be the Right Tenure of your term insurance plan?

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. 

  • For employed individuals with regular salaries, the tenure of the term plan should be until their retirement. It ensures that your dependent member will remain financial safe in case of your untimely demise. The insurance benefits are adequate to replace your salary. Eventually, helping them in maintaining their lifestyle and meeting their daily expenses. 
  • Self-employed individuals need a higher coverage amount since they need to secure their business as well as the dependent family. For such individuals, the assurance term should be maximum i.e. 35 years by most insurers. Additionally, they should opt for convertible term insurance plans, so that they can modify them into whole life insurance when they are financially secure.

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. 

How does Policybazaar.ae Helps You in Finding a Term Plan? 

Policybazaar.ae offers an extensive platform to review, compare and buy term insurance plans in the UAE. Depending on your protection requirements, you can conveniently find various term plans available, compare the best plans within your budget and purchase online following a few simple steps. Additionally, you can also find various offers and rebate to avail yourself of exclusive discounts when purchasing a term insurance plan through Policybazaar.ae.

FAQ's On Term Insurance

Why should you buy a term insurance plan?

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

What are the various types of term insurance plans in the UAE?

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. 

  • Level Term Plans - The death benefits in this term plan remains the same through the insurance tenure
  • Decreasing Term Plans - Decreasing term plans are suitable for loans and mortgages, the assured sum decreases after every passing year.

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.

What are the factors influencing term insurance plan cost?

 

There are various factors that influence your term insurance plan in the UAE. Following are the key factors that affect your term life plan. 

  • Age
  • Health condition
  • Lifestyle habits
  • Occupation 
  • Family history
  • Prior Medical condition
  • Sum assured
How to get the best deal on a term insurance plan in the UAE?

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. 

 

How should I choose the best term insurance plan in the UAE?

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. 

  • Determine the protection requirement
  • Compare various plans that suit your needs
  • Check various additional riders covered under the plan
  • Research about the company you are applying for term insurance with

 

What is the minimum age requirement for buying a 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. 

 

How to choose the right term insurance plan?

To choose the right term insurance plan in the UAE:

  • Evaluate your needs and decide the sum. 
  • Compare the premium offered by different term insurance providers. 
  • Check what is covered under the plan
  • Check the background of the term insurance provider before purchasing a policy from them. You can find the most suitable term insurance to meet your needs at policybazaar.ae
How Long Should Be the Term of Your Term Plan?

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.