Buy Best Term Insurance in UAE

What is Term Insurance in UAE?

Term insurance is a type of life insurance. It offers financial protection for a set period — usually between 5-35 years. In case of the death of the insured individual in the policy tenure, the insurance company pays a death benefit to the insured’s beneficiaries.

With its life coverage, a term policy ensures the financial stability of the insured’s family in unfortunate circumstances. Furthermore, term life plan costs are pretty nominal when we compare their potential benefits. This makes them an excellent option to financially secure your family. 

Read What is Term Insurance and know more about the term plan and how it works. 

Term Insurance Insights

Why Do You Need Term Insurance?

Top 7 Benefits of Term Insurance

Secure your family’s future with coverage of up to AED 1 million, starting at just AED 50/month*.

Available at lower premiums compared to life insurance and other categories.

Help your family maintain their lifestyle even in your absence.

Even in unfortunate circumstances, your family can have funds for children’s studies, marriage, life milestones, and more

Term policies replace the insured’s income in their absence 

Death benefits can be used to pay off outstanding debts and meet future obligations. This makes your family financially stable and debt-free.

Easily customise your policy with various riders related to Critical Illness, Disability, Premium Waiver and more.

How Does Term Life Insurance Work?

As mentioned earlier, a term plan provides limited-period life cover to the policyholder and their beneficiaries against unforeseen events. If the insured individual dies during the policy tenure, the insurer provides death benefits to the dependent family members. 

Let’s understand this through a term life insurance example. 

Justin got his term plan for his family with the following terms —

• Age at the time of buying: 35 years
• Policy term: 20 years
• Premium: AED 800* per year
• Life cover: AED 1 million

*The premium is indicative only. Actual prices may vary.

If you still have questions about the process, click here to read how term insurance works! 

How to Buy Term Insurance from Policybazaar.ae

With Policybazaar.ae, getting the best term policy is just a matter of a few clicks. Here’s how you can 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.

Who Should Buy Term Insurance in Dubai, UAE?

Term Cover 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. 

How Does Term Insurance Protect Your Family?

Term plans provide financial security to the policyholder’s family. By paying death benefits in case of the life assured’s death, these plans help protect dependents like the policyholder’s spouse, children, or elderly parents from financial strain. 

Such policies are especially useful for newly married individuals, new parents, or business owners with debts or financial responsibilities. They can cover daily expenses or fund goals like a child’s education. 

The payout of term insurance can be made periodically or as a lump sum after a claim is filed. Additionally, if you, as a policyholder, pay a bit extra on the premium, you can get coverage for additional risks like critical illnesses, waiver of premium or accidental disabilities. You can also increase coverage at key life events such as marriage or becoming a parent.

What are the 4 Types of Term Life Insurance? 

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

1.  Level Term Insurance

It is the most common type of term insurance UAE. In a level term plan, the premium is pre-decided and remains unchanged throughout the tenure. Among all the term insurance plans, a level term cover is the cheapest in UAE. 

2.  Increasing Term Plan

An increasing term plan is a term policy 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 cover is best suited for individuals with changing life situations since the assured sum increases tackling inflation. Here, the premium for term life insurance UAE may or may not change over the period as per your insurer. 

3. Decreasing Term Plan

Unlike increasing term cover, decreasing term plans reduce the assured sum with every passing year. Again, the declining rate of the assured sum is pre-specified as per your age and health during the plan purchase. Decreasing term policy is suited for individuals with active loans or mortgages. Such term plans work on the notion that your liability decreases with your age, which shows in the reducing sum assured too. 

4. Convertible Term Insurance 

With convertible term insurance UAE, 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.    

How to Find the Right Term Insurance Plan in UAE?

Here’s how you can find the best term life insurance policy for yourself —

• Compare plans from multiple insurance providers 
• Check the Claim Settlement Ratio (CSR) of insurers — this figure gives the idea of the number of claims settled against the total claims received
• Understand your requirements — when getting term insurance Dubai, consider your current income and liabilities as well as your family’s needs, future plans, and more
• See how easy the claim settlement process is — go with a company that has a straightforward process so that you don’t have to rush in time of emergency
• Look for a plan that offers riders or add-ons — you can use them to increase the coverage of your term insurance UAE at nominal additional prices

How to Get Term Insurance at Affordable Rates? 

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 life insurance.

Read More: Difference Between Term and Life Insurance

Why Compare Term Insurance Policies Online? 

When you compare term plans online, here’s what you can enjoy — 

*T&Cs apply

Which Factors Affect Your Term Insurance Premiums? 

Here’s an overview of the top factors that affect term insurance costs — 

Term Insurance Premium Calculator

What is Covered in Term Life Insurance — and What’s Not?

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. 

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 — 

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.

Term Insurance FAQs