Life Insurance in Dubai, UAE

Life insurance is an excellent option to keep your family financially secure in the face of unforeseen events. In the UAE, you can find a range of life plans tailored to diverse needs, whether for expats or Emiratis. 

Comprehensive life insurance in the UAE provides a safety net that not only protects your loved ones from potential financial hardships but also helps in planning for future milestones like education or retirement. 

Interestingly, life insurance can also include a feature that separates it from term insurance — the investment component. While term plans provide straightforward death benefits, life policies may also include an investment component. The latter, in fact, may also provide coverage for your life, while the former covers you only for a specific duration. 

This lets you obtain financial security as well as wealth creation under one plan.

What is Life Insurance in the UAE?

Life insurance in the UAE serves as a safety net — it can cover expenses like debts, daily living costs, or future goals like children’s education or long-term savings, thereby ensuring that your loved ones are financially secure. Policies vary, including term plans, whole life, and endowment plans, catering to different needs. 

Let’s assume that a person named Arnold got insurance for life. Here’s how his plan looks like —

• Sum assured: AED 1 million
• Premium: AED 700 per year*
• Policy tenure: 15 years

Unlike a standard term plan, this policy has an investment component too! So if Arnold dies after 10 years, his family will get AED 1 million. They can use this amount to secure their financial stability, cover daily expenses, and meet long term goals.

However, in case he is alive at the end of the tenure, he will get a sum — this can be either lump sum or in regular installments.

Important: Many life cover plans come with ‘maturity benefits’. This refers to the sum that the insured gets at the end of the policy term.

How Does Life Insurance Work in UAE?

A life insurance policy in UAE serves a dual purpose. Such a plan not only delivers life coverage for financial support but also facilitates the achievement of various financial goals — children's education, funding a wedding, purchasing property, and securing a steady income post-retirement. While we looked at the example above, here’s a quick explanation of how life cover functions in the UAE —

Premium Payment - The policyholder pays premiums as per the fixed frequency. This could be on a monthly or annual basis. 

Life Coverage - In case of the death of the insured in the policy tenure, the insurer will provide a predetermined sum — the sum assured — to the chosen beneficiary. This sum ensures the financial well-being of the family in the insured’s absence. 

Maturity Benefits - If the insured survives until the end of the life policy term, a sum, known as the maturity benefit, is given to the policyholder. However, this depends on the specific nature of the policy, as not all Dubai life insurance plans offer a maturity benefit.

How to Buy Life Insurance from Policybazaar.ae

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

1

Go to Policybazaar.ae and select life 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 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.

How Does Life Insurance Protect Your Family?

Life insurance offers a life cover that is paid out in the form of a death benefit if the life assured passes away during the policy term. They outlives the policy tenure, they are paid a maturity benefit (except in the case of term insurance). 

Additionally, some life plans also offer cash value. All these benefits allow the family of the life assured to lead a decent life if there is a loss of regular income — whether through the death of insured or due to retirement or total and permanent disability. 

In the case of life insurance types like ULIPs and endowment plans, a part of the premium is directed towards investments in market-linked and non-participating commodities. The dividend earned can help the life assured’s family members lead a normal life and generate wealth.

With most life policies, the life assured can withdraw cash for emergencies if required. 

What are the Main Types of Life Insurance?

Each life policy offers unique features and benefits that cater to different financial goals and needs.  Here are the 5 key features of the main types of life covers in UAE - 

Benefits of Buying Life Insurance from Policybazaar.ae

When you apply for life cover UAE through Policybazaar.ae, you get to enjoy many benefits —

1. Best Life Insurance in UAE at Affordable Rates: With monthly premiums of just AED 50*, you can get a cover of up to AED 1 million.
2. Multiple Options in One Place: Get the top plans for insurance for life from multiple insurance providers in one place. 
3. Transparency: Get all the key details about life policies — benefits, exclusions, T&Cs, premiums, and more.
4. Easy Comparison: Compare the most relevant life insurance quotes in just a few clicks. 
5. Personalised Assistance: Have any queries or issues? Our expert team is ready to help you throughout the application process for a smooth journey.
6. Save Time and Cost: Instead of going out or checking multiple sites, you can search, compare, and buy life insurance UAE from the comfort of your home! Additionally, you can find cost-effective plans that meet your requirements.
7. Returns on Investments - Many life protection plans link a part of your premium towards unit-linked assets. This helps you earn high returns while covering your life. 
   
   *T&Cs apply

What is the Difference Between Life Insurance and Term Insurance?

Check out the key differences between life insurance and term insurance in the UAE below — 

Know More: Difference between Term Insurance and Life Insurance

Which Factors Affect Life Insurance Premiums?

Here is an overview of the factors that affect cost of life insurance in the UAE —

Eligibility Criteria to Buy a Life Insurance in UAE

The criteria required for purchasing a life policy can vary among insurance companies. Still, there are common guidelines that are generally applicable as mentioned below - 

• The potential policyholder should fall within the age bracket of 18 to 75 years to be eligible for a life cover policy.
• It's necessary for the applicant to demonstrate a stable and reliable stream of income.
• The individual applying for the plan should be a resident of the UAE and possess all the requisite documentation.

Documents to Apply for Life Insurance in UAE

To apply for life insurance in Dubai or any other Emirate, you must provide the following details — 

• Emirates ID 
• Passport or UAE residence visa (for expats)
• Medical details

Note that the documentation requirements can be different for each insurance provider. Check the requirements before applying for Dubai life insurance.

What are the Additional Add-Ons Available with Life Insurance?

Riders are additional features that can be added to life cover packages to customise coverage as per your specific needs. Some of the common riders of life plans in the UAE include:

Accidental Death Benefit Rider

• A common rider with life insurance cover, it provides additional financial coverage in the event of the insured's accidental death.
• If the insured dies due to an accident during the rider's term, the rider sum assured is paid out to the policyholder's family as a lump sum.
• The benefit is in addition to the sum assured of the base UAE life policy.

Accidental Disability Rider

• This rider of UAE life insurance offers financial support if the policyholder becomes permanently partially or totally disabled due to an accident.
• A percentage of the rider sum assured is paid out for treatment and daily sustenance.
• Payment is determined based on the extent of the disability and the insurer's guidelines.

Critical Illness Rider

• This rider covers a range of critical illnesses to provide financial protection in case the policyholder is diagnosed with one.
• Upon diagnosis, the policyholder and their family receive a lump sum.
• The lump sum from this rider helps one cover their treatment as well as day-to-day expenses.

Waiver of Premium Rider

• This rider waives future premium payments of a life insurance policy in UAE if the policyholder suffers from a critical illness or becomes totally and permanently disabled due to an accident.
• It ensures the continuity of the base life coverage even if premiums are not paid.
• This keeps the policyholder's family financially secure with life cover.

Life Insurance Policies - Frequently Asked Questions