Life Insurance in Dubai, UAE

What is Life Insurance in the 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.

As mentioned earlier, some life policies may also offer maturity benefits if the policyholder survives the term.

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.

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 - This is the amount that you, the policyholder, pay for the financial coverage. This can be paid in one go or on a monthly/annual basis. 

Several factors end up affecting life insurance premiums — the insured’s age, income, medical history, high-risk hobbies, lifestyle, and more. 

We will discuss these factors further in later sections. 

Death Benefit - One of the most important components of life insurance in UAE is the death benefit. This is the predetermined amount the insurance provider pays if the life assured passes away during the policy tenure. 

The insured, at the time of policy application, selects the sum assured based on the beneficiary’s future needs. However, remember that several terms and conditions are applicable concerning this sum assured or death benefit — the list includes age, participation in hazardous activities, occupational hazards, lifestyle, and more. 

Maturity Benefit - This is a benefit paid to the insured in case they survive the policy tenure. This component is present in most life insurance plans except term insurance plans.  

Comparative Overview of Major Types of Life Insurance

Here is a comparison of the primary types of life policies in the UAE — term life insurance and whole life insurance —

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 Much Life Insurance Cover Do You Need?

As per most experts, your life insurance coverage must be at least 10 to 20 times your annual income. By choosing a higher income multiple, you can help your family manage both current financial obligations and future milestones. This also ensures that your family has sufficient funds for the future, even while accounting for inflation. 

Generally, to determine the coverage you need, you should factor in the following — 

• Family’s lifestyle
• Debts and liabilities
• Children’s education expenses
• Children’s prospects — higher education, marriage, and more

Best Life Insurance in the UAE in 2024-25

Tabled below are some of the best policies under life insurance in the 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. 

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 — 

Which Types of Death are Not Covered in Life Insurance Policies?

Although most death types are covered under a life insurance policy, certain exclusions apply — 

• Suicide — not covered within an initial period (varies as per the plan) 
• Death due to substance abuse
• Demise due to participation in criminal or illegal activities
• Death in UN-sanctioned war zones/countries

What are the Riders for Life Insurance Policies?

Discussed below are some popular riders for life insurance policies in the UAE —

• Critical Illness - This benefit comes into play when the life assured is diagnosed with any of the critical illnesses covered and mentioned in the underwriting. 
  In this case, a lump sum amount is paid to the life assured. This sum can be used for treatment, compensating for the loss of income during the treatment period, daily expenses, and more. 
• Accidental Death - In case of accidental death, the life assured’s family is paid an additional amount along with the pre-determined sum assured.  However, keep in mind that the policyholder must have bought this rider at the time of policy purchase. 
• Waiver of Premium in Case of Disability - If the insured becomes incapable of paying future premiums due to a disability, the premiums will be waived and the policy will remain active. 
• Terminal Illness - In case the life assured gets diagnosed with a terminal illness that cannot be cured and can result in death within one year (the time can vary from plan to plan), the company will pay the applicable benefit as per the policy underwriting. 
• Second Medical Opinion - Several life insurance policies in the UAE offer a second medical opinion rider. With this benefit, the life assured can get a second medical opinion from renowned healthcare centres, usually for free. 
• Permanent and Total Disability - If you buy this rider during policy purchase, the insurance company pays an assured amount (predetermined during the purchasing process) in case you become permanently totally disabled because of an accident or sickness. 

Factors Affecting Life Insurance Policy 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 Payout Options for Life Insurance Dubai, UAE?

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.

How to File a Life Insurance Policy Claim?

Discussed below is the process to file a claim against a life insurance plan in the event of an unfortunate demise of the life assured in Dubai, UAE —

• Notify the Insurer - Inform your insurance company about the claim as soon as possible. 
• Complete the Claim Form - Fill out the form accurately with all the necessary details to avoid processing delays.
• Submit Required Documents - Submit the completed claim form and supporting documents through the designated channels.
• Provide Additional Information - Respond promptly if the insurer requests extra documents or information.
• Claim Assessment - The insurer will evaluate your claim based on submitted details and policy terms. It may also conduct further checks if needed.
• Claim Settlement - Upon approval, the settlement amount will be paid via bank transfer, cheque, or other modes.
• Seek Help if Needed - Contact customer service for assistance if you face challenges during the process.

Terminologies Related to Life Insurance Policy

Life Insurance Policies - Frequently Asked Questions