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Best Term Insurance Plans in UAE

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AED 1 million life cover starting @50/month
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10 Years
30 Years
AED 1000000

Before buying term insurance you should know about

What is term insurance?

A term insurance policy is a subtype of life insurance plan  where the policyholder’s family receives financial coverage in case of his/her death within the coverage period. Here, one purchases the policy for a term of 5 to 35 years and has the option to renew it after that to continue the coverage.

Types of Term Insurance Plans in UAE

There is a variety if term insurance plans that’s meant to cater to a wide range of customers and their varying needs -

  • Increasing Term Plan: This is a sub-type of term insurance plans where the coverage amount increases every year by a specific amount. In case of the death of a policyholder, the beneficiary will receive financial advantages.
  • Decreasing Term Plan: Here the policy coverage lowers as the policy reaches its maturity date. It follows a pre-set rate for this purpose.
  • Convertible Term Insurance: This sub-type of term policy allows a policyholder to convert a term plan from its specific period to an indefinite one. It means as long as one pays the premium, the coverage will continue.
  • Return of Premium Term Insurance: This sub-type will return the premium paid, in case the policyholder survives the coverage period.
  • Level Term Insurance: This variation of term insurance plan ensures a level death benefit to the nominees. It means whether a policyholder dies in the early stages of the policy, or the later stages, the benefit amount will remain the same.

Age-wise Term Insurance Plans

5 Year Term Life Insurance 10 Year Term Life Insurance 15 Year Term Life Insurance
20-Year Term Life Insurance 25-Year Term Insurance 30-Year Term Insurance

How Does a Term Insurance in UAE Work?

A term insurance UAE plan determines the extent of coverage and premium based on a few factors. These are your age, current health condition, existing medications, smoking habits, and family history. Moreover, in some cases, there will be a medical examination to determine an applicant's current health condition.

Based on all this information, the insurance company will decide on the premium amount, coverage amount and policy tenure. Let’s take an example to get a better idea of this.

For instance, Mr. A is a 28 years old working professional who wants to buy a term insurance plan of AED 4 million. However, his medical history is not good; he is diabetic and has a family history of heart disease. In this case, the policy provider will be cautious and may charge a higher premium amount. And, in some cases, the policy tenure may not be as long as he wants.

On the other hand, Mr. B is a 35-year-old working professional with no serious illness and has no family history of critical diseases. Now, if he wants to purchase a term insurance plan of the same amount, he has to pay a lower premium amount compared to Mr. A for obvious reasons.

Moving ahead, if you die within the policy term, the insurance company will pay the coverage amount as specified in the insurance agreement to the beneficiary/beneficiaries. However, no such coverage will be available if your policy expires before your death. Nonetheless, you can renew your policy to enjoy the coverage in the long run.

A point to note here is that a term insurance policy does not offer any additional coverage apart from death benefits.

Buy Term Insurance UAE Plans from Top Insurers 

Choosing the right term insurance UAE plan according to your needs takes some time and effort. For your convenience, we have made a list of the best term insurance plans in UAE.

Why is a Term Insurance Plan in UAE Necessary? 

A term insurance plan is a necessity because of its most highlighted benefit, the lump sum coverage it offers following the death of a policyholder. Here, the amount comes without any end-use restrictions, which means the beneficiaries will be able to spend it any way they want to. This can include, repaying debt, managing education expenses, or making further investments.

Benefits of Term Insurance UAE

You get a lot of benefits to enhance your life protection with a term plan.

  • Flexible Time Duration -Depending on your age, you can select flexible tenures starting from 5 years and extending up to 35 years. Keep in mind that insurance premiums increase with age. 
  • Flexible Choices to Pay the Insurance Premium -Pay your premiums monthly, half-yearly, in annual instalments or in a lump sum for the whole insurance term. 
  • Easily Eligibility -Term insurance policies come with easy to meet eligibility parameters. You can easily get them without meeting stringent eligibility criteria, and medical check-ups are not always a mandate. 
  • High Sum of Insurance -Term insurance plans give high death benefits in comparison to the premium. In UAE, you can buy a term insurance plan below AED 200 and get a cover up to AED 5 million. 
  • Flexible Choices for Pay out -You can either choose lump-sum payments or staggered payment options. The beneficiaries can also select the mode of the payout. 
  • Waiving off Premium – If a permanent disability is caused, which results in the loss of the job for the policyholder, the insurance provider offers a premium waiver. The policyholder does not need to pay the premium while being covered for the term duration. 
  • Offers and Discounts –Individuals following a healthy lifestyle receive discounts while purchasing the term insurance plan. Females and non-smokers need to pay low premiums and receive a higher insurance sum.

Why Should an Expat Consider Buying Term Insurance in UAE?

Expatriates working in the UAE can opt for a term insurance plan for its obvious benefits, i.e. the financial security it offers. Here are some reasons why expatriates should opt for a term insurance policy in UAE.

  • These plans are affordable.
  • Expats get substantial financial protection in return for paying their premiums on time.
  • Some international insurance companies give worldwide cover and allow the transfer of the policy to the native country. 
  • Apart from UAE Dirhams, most insurance companies accept payment of premiums in multiple currencies such as USD, GBP, and EUR. 
  • Apart from accidental death benefits, term insurance providers pay for the expenses of repatriation and, in some cases, for the cost of transporting the bodily remains of the deceased.

Minimum Eligibility Criteria for Term Insurance Dubai

Before buying a term insurance plan in UAE, you must fulfil a few eligibility requirements. 

  • Age - To buy a term insurance plan in UAE, you must be 18 - 21 years old (depending upon the insurance company’s age limits). 
  • Nationality – To buy a term insurance plan, you must be a UAE national or a resident possessing a valid UAE resident visa. 

Common Eligibility Criteria to Buy Term Insurance Dubai Plans

For buying a term insurance plan in UAE, a table with various eligibility criteria is provided below - 

Particulars

Eligibility

Minimum Age

18 years

Maximum Age

65-79 years depending on the insurer

Policy Duration

1 to 35 years

Who is allowed to purchase a term insurance plan?

Working Individuals

Newly Married Couples

Parents

Senior Citizens

Payout choices

Lump sum 

Monthly or yearly payout

Lump sum with fixed regular payout

Additional Riders

Critical illnesses cover

Accidental death cover

Family income cover

Permanent total disability cover

Premium waiver cover

Medical Test

Depending on the insurer, you may require medical test

Why Should You Consider Buying Term Insurance Early?

You should buy a term insurance plan early on because premiums are lower when you are young. As your age increases, the premiums increase.

The reason behind this notion is that, usually, with age, you suffer from various health-related complications. These can include all the major and minor diseases. Now, if you apply for term insurance later in your life, chances are you will not get the best possible deal.

Term Insurance for NRI

How to Compare Term Insurance Plans, and Why is it Important Before Buying One?

Comparing term insurance plans will help you to understand more about each policy from different insurance companies. After going through each term insurance plan, you will be able to understand which plan is the best fit for your requirements. Then you can shortlist the one with the maximum benefits.

You can compare various insurance plans by visiting each insurance provider’s website individually. But, that will be a time-consuming process. Alternatively, you can browse through term insurance plans here at Policybazaar Insurance. Here, you can find term policies from different insurance providers and compare and learn about them easily.

Here is a table offering an overview of the comparison –

About Term Insurance

Increasing term plans

Decreasing term plans

Convertible term plans

Return of the premium

Level-term insurance plan

Definition

The coverage amount increases each year

The coverage amount lowers each year

Can convert to a whole life insurance plan if required

Receive the premium amount, if survived the policy tenure

The premium amount remains same throughout the tenure

Coverage amount

Increases ever year

Decreases every year

As per the policy terms

As per the policy terms

Remains level throughout the tenor

Return of premium

NA

NA

NA

Yes

NA

Facility of renewal

Yes

Yes

Yes

Yes

Yes

Things to Remember Before Buying a Term Insurance Plan in UAE

You need to consider the following factors before you purchase a term insurance plan –

  • Begin with an assured sum on your mind: It is important to have an estimate of your family's financial needs before buying a plan that'll be apt to cater to their needs in the absence of the insured.
  • The tenure of your plan: A term insurance plan's tenure can range between 5 to 35 years. So, depending on the maturity age of your dependents, you can opt for a duration that'll allow your family to comfortably sail through in case of a mishap.
  • Opt for a suitable premium: Premiums that derail your monthly budgets are neither practical nor wise. You can choose to pay the premiums monthly, quarterly or annually depending upon your current financial status and payment habits.
  • Choose your add-ons wisely: Only thoughtfully chosen add-ons can make a term plan holistic in every sense. You can get covered for Critical Illness, Terminal Illness, Passive War Risk and Permanent Total Disability depending upon the type of add-on you select.
  • Claim Settlement Ratio: This ratio determines how efficient an insurance company is in disbursing a claim. This lets you get a clear idea of how long it will take before you receive the money.
  • Premium Cost: Reviewing the cost of premium is also imperative as it will help you determine the affordability of an insurance plan.

Riders for Term Insurance - Policybazaar uae

Factors Affecting Term Insurance UAE Premium

The cost of a term insurance plan may vary depending on who’s subscribing to it. If you lead a healthy lifestyle and you are comparatively younger, you may have to pay lesser premiums. However, indulging in life-threatening lifestyle habits and an overall poor health status may lead to higher premiums. We’ve listed a few prominent factors here that can affect your premiums. Let’s take a look:   

  • Your Current Health Condition: The current health condition of an applicant is one of the primary factors here. A fit and fine individual will get favourable benefits compared to someone who has a long medical history of illness.
  • Age of the buyer: The age of an applicant also plays a part here. If you are young and under 30, you are likely to receive better policy terms than someone who is over 40.
  • Smoking and other Harmful Lifestyle Habits: Since smoking is something that can have a long-lasting effect on one’s health if you are a non-smoker you can get better benefits than someone who has this habit. Similarly, consumption of alcohol or indulgence in risky behavior like adventure sports can attract higher premiums.
  • Family Medical History: There are some illnesses that are genetic, and get passed on. So, if there is any such history in your family, they will play a part in deciding the terms of your life insurance policy. 
  • Occupation: Your occupation also plays a significant role in determining the particulars of your term insurance plan. If you work in a hazardous environment, then the policy terms will not be as favorable as those who work in a safer environment.

Term Insurance UAE Claim Process

Insurance providers in the UAE have an easy process for term insurance claims. The following are the necessary steps that are required to settle a claim -

Step 1: To file a claim, beneficiaries need to submit a duly filled claim settlement form.

Step 2: The following documents need to be submitted to settle the claim -

  • Medical certificates
  • Death certificate
  • Documents mentioning the cause of death
  • A valid death certificate is issued from the UAE embassy if the death has happened in a foreign country. 

Step 3: With all the processes completed on your end, expect a waiting period of 4-5 business days. 

Step 4: After the insurance provider verifies all your documents and finds them satisfactory. It disburses the pre-agreed insurance amount to the beneficiaries.

Exclusions of a Term Insurance Dubai Plan

Here are some common exclusions of a term insurance plan-

  • Surviving the policy term
  • Policy lapse due to non-payment of premiums
  • Discrepancies in the policy application
  • Death due to any pre-existing condition or suicide, or STDs
  • Death due to driving under the influence
  • Participating in war or war-like activities
  • Being a part of any illegal activities
  • Death due to alcohol or drug abuse
  • Death during pregnancy

Key Takeaways

  • Term insurance plans ensure guaranteed death benefits to the beneficiary in case the policyholder dies within the policy term.
  • Now, a term insurance plan does not have any other investment value apart from the death benefit. There are no savings components in this policy.
  • The premium of term insurance plans depends on an individual’s age, health and a few other factors.
  • The policy tenure here usually goes up to 30 years.
  • Based on the insurance company you are going ahead with; you can turn a term insurance plan into complete life insurance in the future.

Term insurance is undoubtedly a great safety net for dependents as it secures their financial future. In absence of a provider, they can use these funds to meet a host of monetary requirements. The sole earner of a family can secure their family’s future simply by opting for a term insurance plan for the Family that’s affordable and yields great benefits.

Pro tip: Before opting for a plan, the buyer must go through all the terms of the policy and understand them. In case of any confusion, it’s best to clear them and then sign the agreement to make a sound decision.

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