Best Term Insurance Plans in UAE

What is a Term Insurance Plan?

A term life insurance plan is a type of life insurance. It financially secures the life assured’s family in case of the former’s death during the policy tenure. The policy tenure is set for a certain period and can usually go up to 45 years.

The death benefit or sum assured is paid if the life assured unfortunately passes away during the plan period and the policy remains active. 

A term insurance plan is often considered the first step towards financial planning. It is more affordable than permanent, universal, and whole life insurance. 

Is Term Insurance A Good Idea?

Yes, term insurance is a good investment. With a term life insurance plan, you get a pure life cover. Such plans are mostly affordable and have a plethora of benefits that make them worth buying. 

These benefits are as follows —

• Simple Term Life Cover — With the basic life insurance plans, you get easy-to-understand features. They offer a life cover that is 20 times the income of the life assured. These plans financially protect the life assured’s family and beneficiary in case of the life assured’s passing away during the plan tenure. 
• Helps in Meeting the Financial Financial Obligations — With a term insurance plan, the Life Assured’s family can meet their financial requirements in their absence. The sum assured can help the family pay their unpaid loans, debts, and monthly instalments or EMIs in the life assured’s absence. 
• Various Modes of Receiving Death Benefit Payouts — There are ways to get term life insurance benefits for a beneficiary. They can receive the sum as a lump sum payout or in the form of a monthly income. 
• Premium Payment Flexibility — The policyholder has the flexibility to choose the way they pay the premium — monthly, half-yearly, quarterly, or annually. The mode depends on their financial commitments and convenience.
• Affordable Plans — This is one of the main benefits of term insurance. It offers a large life cover despite being cost-effective. This is mainly because it only offers life insurance coverage. 
• Option to Select Riders — With a term insurance plan in UAE, you have the choice to add riders like critical illness benefits, permanent and total disability benefits, and more. However, when you choose riders, you need to pay an additional premium for coverage. 

What are the Types of Term Insurance in UAE? 

Discussed below are the major types of term life insurance plans —

• Level Term Plans — Among the most popular plans in the UAE, it guarantees a fixed sum throughout the policy tenure. The premium, too, is fixed and the nominee gets a predictable sum in a structured manner when the life assured passes away during the policy tenure.
• Increasing Term Insurance - This term life insurance plan is somewhat similar to a level plan. However, there is a major difference between the two — here, the sum assured increases every year by a fixed percentage. This type of plan is suitable for young families with increasing financial responsibilities. Note that the increase is associated with the inflation rate and assures that the life cover matches the rising cost of living. 
• Decreasing Term Life Insurance — Under this type of term life insurance, the sum assured decreases during the policy tenure. This plan is suitable for individuals with particular financial responsibilities like mortgages or loans that decrease with time. The plan usually works on the concept that your liabilities decrease with time and age. 

A Quick Dig into Mortgage Term Insurance Plan
It is a type of decreasing term life insurance plan — the value of the mortgage amount goes down and so does the amount of sum assured. The death benefit is paid to the bank once the life assured passes away. This plan protects the repayment of a mortgage.

• Convertible Term Insurance — When a policyholder gets this term life insurance plan, they can convert their coverage into permanent life insurance without the need to undergo a medical examination. The coverage remains unaffected by changes in the health status. 

In and Out Terminologies Associated with Term Insurance
Sum Assured	A set amount of money the insurance provider gives to the life assured’s family in case of their unfortunate demise during the policy tenure
Policyholder	The person who buys the insurance policy and pays the premium — they may own the policy but it doesn't always mean only their life is insured
Life Assured	The person whose life is insured by the policy and the coverage is for the risk of their death.
Rider	Additional option of a term insurance plan that the life assured can buy at the time of purchasing the policy — its cost is added to the policy premium.
Waiver of Premium Rider	Here, the life assured can maintain their coverage and prevent the policy from lapsing even if they can no longer afford the premium under circumstances like disability, critical illness, and more .
Critical Illness Rider	Another additional paid option of term insurance that offers financial assistance to the life assured in a medical emergency. It offers financial cover for a range of illnesses including cancer, stroke, renal transplant, heart attack, and more.
Permanent and Total Disability Rider	A rider that financially secures the life assured if they become accidentally totally and permanently disabled during the policy tenure
Beneficiary	An individual who receives the financial benefit in case of the life assured’s death during the policy tenure — they act as the legal successor to the sum assured
Grace Period	This is a window of opportunity for the life assured to decide to keep paying the premium and keeping the policy active

What are the Features of Best Term Insurance Plans? 

Here are the salient features of the best term insurance plans —

• Fixed Premiums — The top plans offer predictable premiums that stay the same throughout the policy term. This makes it easier to budget without worrying about price hikes.
• Death Benefit — Term insurance UAE provides a lump-sum death benefit to your beneficiaries if you pass away during the policy term. This amount can help cover funeral costs, debts, and living expenses.
• Choice of Coverage Amount — You can choose a coverage amount that fits your financial needs, such as paying off debts or securing your family's future.
• Term Length Options — You can select a term length that suits your needs, with options like 10, 15, 20, 30, or 35 years.
• Renewability and Convertibility — Most term insurance plans allow you to renew or convert your coverage into a permanent life insurance plan without a medical exam.
• No Cash Value — Unlike permanent life insurance, term plans don't build cash value but offer affordable protection focused on providing a death benefit.

How to Calculate Term Insurance?

You can easily estimate the life cover you need using an online term insurance calculator. This tool is quite easy to use and requires basic details like —

• Age 
• Income
• Gender
• Lifestyle
• Policy Tenure

Once you enter these details, you can get life cover under term life insurance. You can even find plans as per the details that you provide. 

What are the Factors Affecting The Premium of Term Life Insurance in UAE? 

One aspect that cannot be let go when it comes to term plans is its premium. 

Several factors affect the premium of term life insurance in Dubai, UAE. Let’s understand them better — 

• Age — Age is a key factor in determining term insurance premiums. The younger you are when purchasing the policy, the lower your premium will be. This is because premiums increase with age due to higher mortality risk.
• Gender — Gender can also affect term insurance costs since women generally live longer than men. Women typically pay lower premiums than men of the same age.
• Lifestyle & Health — Lifestyle choices like smoking, alcohol consumption, and overall health significantly impact premiums. A healthy lifestyle can lead to lower premiums, while existing health conditions may increase them. Similarly, if you smoke or consume alcohol regularly, your premiums can go up.
• Occupation — Your job influences your insurance premium. Physically demanding or high-risk jobs may lead to higher premiums. 
• Residential Neighbourhood — Where you live may also affect your premium. Living in high-risk areas prone to natural disasters like earthquakes or floods may result in higher premiums.
• Policy Term — The duration of your policy impacts premium costs. Longer terms may carry higher premiums as the cost spreads over the years.
• Add-ons — As we saw earlier, if you include an add-on in your plan, the total premiums can increase.

Here’s a quick overview of the major add-ons of term insurance UAE — 

Add-on Benefits & Features

1. Accidental Death Benefit: Provides an extra payout if death occurs due to an accident
2. Accidental Disability Benefit: Offers a premium waiver or lump-sum payment in case of disability
3. Critical Illness Cover: Covers expensive treatments for serious conditions like cancer or heart disease

What are the Differences between a Term Insurance Plan and a Whole Life Insurance Plan?

Check out the key points of difference between a term insurance plan and a whole life insurance plan —

What All is Generally Excluded from Term Insurance UAE?

Term insurance in Dubai, UAE does not cover the following —

• War risks 
• Attempt to suicide or intentional self-harm
• Visiting a country with a disease that WHO recognises as an epidemic or pandemic level 5 or 6
• Death due to involvement in crime, political assassination, or provoked assault
• Death due to undisclosed pre-existing medical conditions
• Visiting a country prone to terrorist attack
• Mental illness or disease or a nervous disorder
• Disability occurring due to participation in dangerous sports
• Drug, alcohol, or other substance abuse 
• Exposure to atomic, radioactive, chemical, and biological contamination
• Death outside the policy tenure

Who Should Invest in a Term Insurance Plan? 

Usually, term insurance is suitable for anyone who is the sole breadwinner of the family. In case of their unfortunate death during the policy tenure, the sum assured paid out acts as a regular income for the dependents. 

Other policyholders can be young investors who just began their careers and are seeking cost-effective ways to ensure their family’s financial securities. If you are a young married couple, you can buy a joint-term insurance plan to financially secure you and your spouse. 

Pre-Requisites of Term Insurance
Minimum Age	18 Years
Documents Required	Emirates ID Medical Records (if applicable)

What are the Things to Keep in Mind When Buying Term Life Insurance? 

Here are things to keep in mind when you plan to buy term insurance in the UAE —

• Evaluate the Coverage Amount — To select the best term insurance plan, you need to analyse your financial commitments and then select the coverage amount (i.e., sum assured). You can accordingly select the payout option for your beneficiaries in case of your unfortunate demise during the policy tenure. Keep in mind that the sum assured can cover the outstanding debt, offer financial security to the spouse, meet the children’s higher education requirement, or pay the living expenses. Thus, choose the coverage amount accordingly. 
• Select the Right Policy Tenure — Another thing to keep in mind when getting a term life insurance plan is to choose the right policy duration. Make sure that the period you choose aligns with the degree of your dependents’ financial dependence on you. So when selecting the policy duration, consider children’s age, spouse’s retirement age, and outstanding loan duration. 
• Take Your Age into Account — Your age also plays an important role in influencing the premium of your term plan. The younger you are, the lower will be your premium. This is mainly because at a young age, you are usually not considered prone to critical illnesses. 
• Evaluate Your Lifestyle — Your current lifestyle plays a crucial role in estimating your premium amount. Habits like smoking, dangerous hobbies, and intake of alcohol can increase the premium amount as you are more susceptible to critical illnesses and injuries. 
• Study the Policy Exclusions — Before finalising term insurance in Dubai, study and understand the exclusions mentioned in the document. It is important to know under what circumstances the term plan claim can get rejected. The general scenarios are high-risk activities, undisclosed pre-existing medical conditions, or suicide or self-harm. 
• Compare the Quotes and Premiums — Don’t settle for the first term insurance policy you see. Rather, head to a third-party aggregator website like Policybazaarinsurance.ae where the best options are available. Simply fill in the lead form under the term insurance tab. This will take you to the quotes page, where you can compare the options available in terms of reviews and claim settlement ratio. You can then select a plan that suits your financial situation and meets your family’s future financial needs. 
• Know Your Riders — You can also enhance coverage of your Dubai term insurance by including additional riders at an additional premium amount. Some common riders in UAE are — critical illness riders, waiver of premium riders, and permanent and total disability riders. 

Why Get Term Life Insurance from Policybazaar Insurance UAE?

You can get the best term insurance plans in the UAE from the top insurance providers under one roof on Policybazaarinsurance.ae. This third-party aggregator has a straightforward user interface which makes it the top choice to compare and buy term insurance plans in Dubai, UAE. 

When you choose to get a term insurance plan from here, you get access to —

• Accurate price quotes
• Round-the-clock customer support — just dial 042472904 or drop a mail to communication@policybazaar.ae. 
• Quick access to current market trends

How Can You File a Dubai Term Life Insurance Claim?

Here are some general steps that most insurance providers follow for the filing of a term life insurance claim —

• Notify the Insurance Provider — Immediately connect with your insurance company to inform them about your claim.
• Complete the Claim Form — Accurately fill out the claim form and provide all requested details. Ensure thoroughness to avoid delays in processing.
• Submit the Claim — Send the completed claim form and all necessary documents to the insurance company through the designated channels.
• Provide Additional Information — If additional information or documents are needed, provide them promptly to facilitate the claim process. Stay responsive to the insurer.
• Claim Assessment — The insurance company will review the claim based on the provided information, documents, and policy terms. An investigation may be conducted if required.
• Claim Settlement — Once approved, the insurance company will settle the claim as per the policy terms. The payment is made via bank transfer, cheque, or other methods.
• Seek Assistance if Needed — If you have any difficulties or questions, contact the insurance company's customer service or claims department for help.

Note: Steps can vary depending on the insurance provider as well as terms and conditions. Review your policy documents and follow your insurer's instructions. 

Prerequisites Required 

You may need to provide the following documents when filing a term insurance claim —

• Original policy document
• Promptly filled-in claim form
• Death certificate
• Medical records (if applicable)
• Emirates ID
• Address proof (like utility bills)
• Other documents as asked by the insurance provider

Frequently Asked Questions

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