Best Term Insurance Plans in UAE

Why Should You Buy Term Life Insurance UAE?

Living in the UAE comes with its own financial responsibilities — from rising rent and mortgages to loans, education expenses, and high medical costs. If the main earning member is no longer around, a family can struggle to manage itself. Term life insurance in UAE makes sure that doesn’t happen.

Here’s why people choose it —

• Future Security for Children → Education in the UAE is expensive. A term policy guarantees that your kids’ future is secure.
• Homes are Getting Costly → Rents and property prices continue to rise. Term cover ensures your family can afford rent, housing, and daily expenses.
• Most People Have Loans → From car loans to mortgages, debts are common. You can use term insurance money to pay off outstanding mortgages, car loans, or personal loans.
• Healthcare Costs are High → Even young professionals are facing lifestyle diseases. The best term insurance plan covers sudden health-related deaths or critical illnesses.
• Expats Need Protection → There are not many long-term social security or government benefits for expats’ families in the UAE yet. Term insurance fills this gap.

Types of Term Insurance Plans in the UAE

Not all term insurance plans are the same. Here are the main types available —

1. Level Term Insurance: ;

The cover amount stays the same throughout the policy term. It is ideal if you want fixed protection for family expenses, education, or long-term security.

Example: AED 1 million cover today will still be AED 1 million in year 25.

2. Increasing Term Insurance: ;

The cover increases each year, usually to match inflation or rising financial responsibilities. This term insurance plan is perfect if you expect your family’s needs to grow, like children’s education or rising living costs in Dubai.

Example: AED 1 million cover today could become AED 1.2 million in 5 years.

3. Decreasing Term Insurance: ;

The cover amount reduces every year on a pre-set basis. It’s great for covering loans (like mortgages) that shrink over time.

Example: If your home loan is AED 800,000 today but will reduce each year, your term insurance cover will also reduce accordingly.

5 Best Term Life Insurance in UAE 2025

To help you choose the best term life insurance in UAE, we’ve shortlisted some of the most trusted term insurance providers with their plan details, coverage, riders, and costs.

The plans mentioned below are for a 30-year-old male, a non-smoker, looking for AED 1M coverage in 30-year tenure. You can add your details to get a customised quote. 

How to Choose the Best Term Life Insurance in UAE?

Here’s what you should keep in mind while picking the best term insurance plan for yourself and your family —

Pick the Right Type of Policy

The type of policy you choose should match your financial goals and lifestyle.

• Uniform cover → Level Term
• Rising expenses → Increasing Term
• Loans/mortgages → Decreasing Term

Consider current financial situation and your prospects. That way, you’ll know which type of cover is most suitable.

Choose the Right Sum Assured

Experts recommend coverage worth 10 to 15 times your annual income. Therefore, if you earn AED 200,000 a year, you should look at a policy worth AED 2–3 million. Use online term insurance calculators to figure out exactly how much cover you need, based on your lifestyle, debts, and family expenses.

• Add Optional Riders for Extra Protection
  Basic term insurance covers death, but you can make your policy stronger by adding riders. These are additional coverage that give you extra benefits —
• Accidental Death Benefit Rider → If you pass away in an accident, your family gets an additional payout on top of the basic cover.
• Critical Illness Rider → If you are diagnosed with a major illness, you’ll get a lump sum while you’re alive. This helps with hospital bills or income replacement. This rider can be accelerated or a standalone policy.
• Waiver of Premium Rider → If you become permanently disabled or critically ill and can’t work, your insurer waives all future premiums, keeping your policy active without any payments from your side.

Check Claim Settlement Ratio (CSR)

A CSR of 94–98% (as seen with top UAE insurers) means almost all claims get paid out without hassle. This figure is publicly available, so always compare insurers before making a decision.

Balance Between Premium and Coverage

It’s natural to look for the cheapest plan, but cheapest isn’t always the best. You should focus on a balance between affordable premiums and comprehensive coverage. Check if the premium is sustainable for you in the long run (since term insurance is usually for 20–30 years).

Who Should Buy Term Insurance in Dubai, UAE?

Everyone can benefit from term life insurance in Dubai, UAE, but the reasons may vary depending on your life stage. Here’s how it applies to you —

• Young Professionals: If you’re just starting your career in Dubai, buying term insurance early means you lock in much cheaper premiums for life. 
• Parents: With term life insurance, you create a financial cushion that covers school fees, rent, household expenses, and even long-term savings goals such as university education.
• Newly Married Couples: Marriage brings new responsibilities, shared rent or mortgage, joint loans, and plans for the future. A term plan helps you make sure your partner is protected, debts are cleared, and your shared financial goals aren’t derailed.
• Self-Employed Individuals: If you run your own business or freelance in Dubai, you don’t get the employer-provided life cover that salaried people often enjoy. That makes buying your own term life insurance even more critical. 
• Single Mothers & Working Women: If you are the sole breadwinner, your children rely completely on your income. Term insurance gives you peace of mind that, no matter what happens, your needs, from school to living expenses, are always secured.

Payout Options for Term Insurance in UAE

When it comes to paying the death benefit, insurers in Dubai give you flexibility to choose how your family will receive the money —

One-time Lump-sum Payout: Your family receives the entire benefit at once. This is useful for clearing loans, mortgages, or other large debts immediately.

Quick Comparison: Term Insurance vs Life Insurance

Here’s a brief comparison between term and life insurance to help you identify the suitable one for you —

If you want a more detailed comparison, read our article on the Difference between term insurance and life insurance.

Where to Get Term Insurance in the UAE?

Buying term life insurance in Dubai or anywhere in the UAE is now simpler than ever, thanks to online platforms like Policybazaarinsurance.ae. 

Here’s how you can do it —

1. Head to the website and select “Term Insurance” from the top menu
2. Enter your basic information, like your name, age, phone number, and annual income
3. Click on “View Quotes” and within seconds, you’ll see the best term life insurance options in the UAE
4. Compare coverage, benefits, riders, claim settlement ratio, and premium costs—all in one place
5. Click “Apply” and follow the guided steps, and upload the required documents

With Policybazaarinsurance.ae, you stay in control, choosing the right plan at the right cost without pressure or confusion.

• No hidden fees
• 100% online convenience
• Multiple insurer options in one place

How to File Term Insurance Claims in the UAE?

Filing a term insurance claim in the UAE is a straightforward process, provided you follow all the steps and keep documents ready. Here’s how it works —

Notify the Insurance Company: Most companies provide a dedicated claims helpline, email ID, or online portal. Quick notification helps start the claim process without delays.

Complete the Claim Form: Download or request the insurer’s claim form. Fill it carefully with accurate details about the policy.

Submit the Claim with Documents: Attach all required documents and submit them via the insurer’s preferred channel: online upload, email, or physical branch submission.

Provide Additional Information if Required: Sometimes, insurers may ask for extra documents or clarifications, such as hospital records, police reports (in case of accidental death), or additional ID proofs. Submit these promptly to avoid delays.

Claim Assessment & Settlement: The insurance company will review the claim. Once everything is verified, the insurer will release the payout to the nominee/beneficiary. The settlement is usually done via bank transfer or cheque.

Documents Required to Buy Term Life Insurance in UAE

Whether you’re a UAE national, resident, or expat, insurers will ask for some basic documents —

• UAE Nationals/Residents: Emirates ID
• Expats: Valid Passport + Emirates ID
• Proof of Address: Utility bills or rental agreement

Pro Tip: Always keep a copy of the policy documents, nominee details, and key insurer contact numbers handy. This helps your family file a claim faster in case of emergency.

Glossary 

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