Group Life Insurance in Dubai, UAE

What is Group Term Life Insurance?

A group life policy is a life insurance plan that covers a group of people under one policy. It's commonly provided by employers to their eligible employees, but can also be offered by associations, trade unions, or other large organisations to their members. The main advantage of this plan is that the premium is usually lower than the cost of an individual life insurance policy, making it an affordable option for many.

The coverage amount is typically a set sum, and the employees or members don’t have to undergo a medical checkup or individual underwriting. This makes it simpler to obtain coverage compared to individual life insurance plans.

Who Should Consider Group Life Insurance?

Basic group life insurance is beneficial for —

• Employees: Group life insurance provides a cost-effective way for employees to secure life coverage without the need for medical exams or high premiums.
• Employers: Offering group life insurance as part of an employee benefits package can improve employee satisfaction, reduce turnover, and increase loyalty. 
• Small Businesses: Small business owners can provide valuable life insurance benefits to their employees at an affordable cost, helping them compete with larger companies.

 

Benefits of Employee Group Life Insurance UAE

Group life insurance offers several advantages, both to the employees and to the organisation offering the coverage. Here are the key benefits:

1. Affordable Premiums: Group life insurance is typically much more affordable than individual life insurance policies. This is because the risk is spread across many people, which reduces the cost for each individual. In many cases, the employer may pay the entire premium, meaning employees get free coverage.
2. Financial Protection for Families: In the unfortunate event of an employee’s death, the beneficiary (often a family member) receives a lump sum payment. This provides much-needed financial support during a difficult time. This can help ease the burden on the family, especially if the deceased was the primary breadwinner.
3. Easy Enrollment Process: There are no complicated medical exams or health questionnaires, making it easier to get covered. Employees are automatically enrolled, making it hassle-free.
4. Employee Retention and Morale: Offering group life insurance as part of an employee benefits package helps attract and retain talent. It increases employee satisfaction and loyalty, as it shows that the employer values their well-being and cares about their families.
5. No Medical Screening Required: Group life insurance usually does not require a medical assessment, unlike individual life insurance coverage. This makes it accessible to all employees, regardless of their health conditions.
6. Credit Protection: Some group life policies also provide credit protection. If the borrower passes away, the group life policy will cover the loan balance, ensuring that the lending institution is repaid.

Features of Group Life Insurance Policy in UAE

Here are the top features of business group life insurance that make it a suitable plan for you —

• Master Contract: The employer or group organiser holds the master contract for the group life insurance policy. This contract outlines the terms, coverage limits, and benefits. Each member of the group receives a certificate of coverage.
• Coverage Period: The coverage lasts as long as the employee or member is part of the group. If an employee leaves the company, they may lose their coverage, unless they choose to convert it to an individual policy.
• Portability: Some employee group life insurance plans offer the option to convert the coverage into an individual policy if the person leaves the group (e.g., upon resignation or retirement).

How Group Life Insurance Works?

Group Life Insurance UAE operates through a single policy issued to an employer or group. The organisation acts as the policyholder and pays the premiums, or sometimes, employees contribute a small part of the cost.

The death benefits of the policy are payable to the beneficiaries of any covered individual who passes away while under the plan.

• Employer Responsibility: The employer usually buys the policy, handles the paperwork, and makes the premium payments
• Automatic Coverage: If you’re eligible, you will automatically be enrolled for coverage under the group policy when you join the organisation or employer
• Coverage Duration: The coverage lasts as long as the individual remains a part of the group (for example, as long as they are employed with the company)
• No Medical Exams: Unlike individual life insurance, most group life insurance plans don’t require medical exams or health questionnaires

Group Life Insurance Pros and Cons

The below table outlines the pros and cons of purchasing group life policy for you to make a better and more informed decision —

✅Pros	❌Cons
Inexpensive or fully paid by the employer	Coverage may be limited and not meet all needs
No medical exam required for qualification	Group policies may provide only basic coverage, which might be insufficient
Easy qualification for all group members	Coverage stops when you leave the organisation or if the employer cancels the policy
May allow you to purchase additional coverage at a lower rate than individual policies	Additional coverage may not be portable or could have higher premiums when converted to individual policies
Premiums are automatically deducted from your paycheck	The employer controls the policy and its terms, potentially raising premiums
Can sometimes add coverage for dependents	Relatively low death benefits

What Does Group Life Insurance UAE Cover?

• Group Life Cover: A lump sum payable in the event of an employee's death due to illness or accident
• Accidental Death Cover: An additional lump sum paid if an employee dies as a result of an accident, on top of the standard group life cover
• Income Protection: Pays a percentage of the employee's income if illness or injury prevents them from working for an extended period
• Terminal/Critical Illness Cover: Provides support for employees diagnosed with serious or terminal health conditions, offering a payout to help manage medical costs
• Disability Coverage: Protects employees against permanent, partial, or temporary disability caused by accidents or illnesses, offering financial support during recovery
• Medical Expenses: Covers healthcare costs incurred due to illness or injury, easing the financial burden of medical treatments

How Much Does Group Life Insurance Cost?

The cost of group term life insurance depends on several factors, including —

• Number of Employees: The larger the group, the lower the premium per person, as the risk is spread over more individuals
• Level of Coverage: Plans offering more extensive coverage (e.g., maternity care, advanced treatments, international coverage) typically come at a higher cost
• Insurer and Plan Type: Different insurers offer varying rates. The type of plan (basic vs. comprehensive) also influences the cost
• Location: Health insurance rates vary by country or region. For example, countries like the UAE have specific regulations and pricing structures that affect premiums
• Affordable Plans for Small Businesses: Some budget-friendly small business group life insurance options are available, providing essential coverage at a lower cost

Top Group Life Insurance Providers in the UAE

We have listed the leading providers of employee group life insurance in the UAE —

• Union Insurance 
• Al Buhaira National Insurance
• Abu Dhabi National Company 
• Al Ain Al Ahlia Insurance Company
• Sukoon Insurance

Eligibility Criteria to Apply for Group Life Insurance in UAE

Here are some requirements that you may need to fulfil to get this insurance —

1- Employer Eligibility

Criteria	Description
Registration	Must be a legally registered business in the UAE
Minimum Employee Count	Varies by Emirate and insurance provider

2- Employee Eligibility

Criteria	Description
Minimum Age	Must be above 18 years old
Employment	Only full-time employees are eligible

How to Apply for Group Life Insurance in UAE?

Secure the best group life policy and connect with the top business insurance providers in the UAE —

After submission, our representative will contact you to discuss your needs and help you select the best plan.

Documents Required to Apply for Group Life Insurance

To apply for group life insurance in UAE, here are some documents that you may need to submit -

• Emirates ID 
• Passport and Visa Copy 
• Police and Accident Report 
• Claim Form
• Medical Report 
• Salary Slip for Past 3 Months

Terms and Conditions for Group Life Insurance

Mentioned below are some general terms and conditions applicable to group life insurance-

• Policy Cancellation: The insurance cover will be automatically cancelled if the number of insured employees falls below the minimum required by the policy. In this case, the potential continuation may be subject to individual underwriting and at specific rates.
• Change in Group Size: Any significant change in the number of group members, such as a 25% increase or decrease, requires adjustment to the policy terms- and potentially the premiums.
• Actively at Work Requirement: Coverage is contingent upon the employee being actively at work on the day the policy commences or when added to the policy.
• Claims Notification: Claims must be reported within a stipulated time frame as detailed in the policy document.
• Special Risks Exclusion: Certain high-risk activities or occupations may not be covered unless specifically underwritten and accepted by the insurer.

Frequently Asked Questions