Best Term Insurance Plans in UAE

In the UAE, term life plans are available with flexible terms and affordable premiums, making them accessible for anyone looking to secure their family's future. Explore the benefits of term insurance and choose the right plan to safeguard your loved ones today.

Features of Term Insurance Plan

Here are some of the key features of term life insurance in the UAE -

• High Coverage at Low Cost – Get a large insured sum at affordable premiums
• Easy to Buy – Quick and simple application with minimal requirements — easily compare and purchase on Policybazaar.ae
• Flexible Payouts – Choose between a lump sum or staggered payments based on your needs
• Customisable Policy Term – Select a coverage period from 5 to 35 years, depending on your age and preference
• Flexible Premium Payments – Pay monthly, half-yearly, annually, or as a one-time lump sum
• Premium Waiver – If the insured becomes permanently disabled and is unable to work, premiums may be waived with an added rider

What are the Types of Term Insurance in the UAE?

Discussed below are the types of term insurance in the UAE —

Reasons to Buy a Term Insurance Plan

Listed below are the main reasons as to why a term plan is necessary in the UAE —

• Rising Liabilities – Many among us rely on loans rather than savings over time. With a term policy, your family can manage debts and daily expenses in your absence.
• Smaller Families, Bigger Risks – Unlike before, where extended families provided financial support, nuclear families face greater financial insecurity if a primary earner is lost. 
• Growing Lifestyle Diseases – Health risks, especially for professionals in high-stress jobs, are increasing. This makes financial protection even more crucial.
• Impact of Inflation – Savings today may not be enough for future needs. With rising costs, a strong financial backup is necessary to secure your family’s future.

Best Term Insurance in the UAE

Curated below is a list of some of the best term insurance plans in the UAE —

Reasons to Buy a Term Insurance Plan

Listed below are the main reasons as to why a term plan is necessary in the UAE —

• Rising Liabilities – Many among us rely on loans rather than savings over time. With a term policy, your family can manage debts and daily expenses in your absence.
• Smaller Families, Bigger Risks – Unlike before, where extended families provided financial support, nuclear families face greater financial insecurity if a primary earner is lost. 
• Growing Lifestyle Diseases – Health risks, especially for professionals in high-stress jobs, are increasing. This makes financial protection even more crucial.
• Impact of Inflation – Savings today may not be enough for future needs. With rising costs, a strong financial backup is necessary to secure your family’s future.

What are the Benefits of Term Plans?

Discussed below are the benefits of term insurance plans in the UAE -

Note: Experts suggest that the coverage should be at least 10 times your annual income.

Understanding the Difference Between Term Insurance and Whole Life Insurance

Here are the major differences between term insurance and whole life insurance in the UAE —

How Does Term Insurance Work in the UAE?

Here is an overview of how term insurance works in the UAE —

• Choosing the Policy - First, calculate how much coverage you need and for how long. Consider your financial commitments, like loans or education, when making this decision.
• Paying Premiums - Once you’ve selected the coverage and term, you’ll pay premiums to the insurer. These can be monthly, quarterly, or yearly, depending on your agreement.
• Death Benefit - If you pass away during the term, the insurance company will pay the agreed amount to your beneficiaries. This sum can cover debts, maintain the family’s lifestyle, or fund future needs like education or healthcare.
• No Payout if You Survive - If you live through the term, there is no payout — the policy ends unless you renew it. Some policies allow renewal without a medical exam, though premiums may rise with age.
• Policy Exclusions - Term insurance policies have exclusions, like death due to suicide within the first year or involvement in illegal activities. Be sure to understand these exclusions before buying a policy.

What are the Major Term Insurance Riders in the UAE?

Riders are optional add-ons that you can add to your term policy and get extra benefits beyond the basic coverage. Here are some common riders and their benefits —

• Critical Illness Rider - Provides a lump sum payout if the insured is diagnosed with a serious illness like cancer or a heart attack
• Terminal Illness Rider - Allows early access to part of the death benefit if diagnosed with a terminal illness
• Premium Waiver Rider - Waives future premium payments if the policyholder becomes disabled or unable to work
• Accidental Death Benefit Rider - Pays an extra amount if the death occurs due to an accident
• Permanent Total Disability Rider - Offers financial support if the insured becomes permanently disabled
• Second Medical Opinion Rider - Provides access to another specialist’s opinion for serious illnesses
• Temporary Life Cover Rider - Gives temporary coverage before the policy is officially issued
• Repatriation Benefit Rider - Covers the cost of transporting the insured’s remains back home if they pass away abroad

Which Factors Affect Your Term Insurance’s Premium?

Let’s understand the factors that impact your term life insurance’s premium —

• Age – Younger individuals pay lower premiums — a 25-year-old is likely to pay less than a 45-year-old due to lower health risk
• Health Condition – Good health means lower premiums — existing medical issues, on the other hand, can increase costs
• Coverage Amount – Higher coverage (e.g., AED 500,000 vs. AED 100,000) leads to higher premiums
• Policy Term – A 10-year policy is usually cheaper than a 30-year policy since longer coverage increases costs
• Smoking Status – Smokers pay more due to higher health risks
• Gender – Women often pay lower premiums due to their higher life expectancies 
• Payment Frequency – Annual payments may be cheaper than monthly ones as some insurers offer discounts

Who Should Invest in Term Life Insurance in the UAE?

Term insurance is essential for working professionals, young parents, and those with dependent family members. It provides financial security for loved ones in case of unexpected events. 

Let’s understand the importance of term insurance for individuals belonging to the following categories — 

• Young Professionals – With fewer financial obligations, young professionals can secure high coverage at low premiums by starting early
• Parents – As primary earners, parents need term life insurance to ensure their family's financial security in case of any unfortunate event
• Newly Married Couples – A term plan provides financial support to a spouse, helping them manage expenses even in the policyholder’s absence
• Self-Employed Individuals – Entrepreneurs have financial responsibilities towards both their families and businesses — a term plan helps them protect both
• Working Women & Single Parents – A term policy ensures financial security for dependents, offering peace of mind in case of unforeseen circumstances

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

To get the best coverage with your term plan, keep the following things in mind —

• Decide the Right Coverage Amount - Choose a plan that ensures your family can manage daily expenses in your absence. Consider both your income and your family's financial needs when selecting coverage.
• Consider Your Life Stage and Family Size - Financial responsibilities change over time. A single person has different needs than someone who is married or has children. Choose coverage that adapts to your life stage and growing responsibilities.
• Check the Claim Settlement Ratio - A higher claim settlement ratio means better chances of your family receiving the full sum assured. Choose an insurer with a strong track record of settling claims efficiently.
• Assess Your Family’s Needs - Select coverage that helps your family maintain their current lifestyle. Furthermore, factor in inflation and future expenses to ensure sufficient financial protection.
• Add Riders for Extra Protection - Enhance your coverage with riders like disability cover, premium waiver, or loss of employment cover for added security at a small extra cost.
• Include Outstanding Liabilities - If you have loans (home, car, or personal loans), add their repayment amount to your coverage to prevent the burden from falling on your family.

Where to Get Term Insurance in the UAE?

Getting the best term insurance in UAE is easy with Policybazaarinsurance.ae.

1

On Policybazaarinsurance.ae, select term insurance from the top menu

2

In the form, enter your basic details like name, age, phone number, and more

3

Click on 'view quotes' to see the best options for term policies

4

Compare the quotes and choose the one that fits your needs

5

Click 'apply' and follow the instructions to complete your application

How to File Term Insurance Claims in the UAE?

Discussed below is the process to file a term insurance claim in the UAE —

• Notify the Insurance Company – Contact your insurer right away to inform them about the claim using the provided contact details
• Complete the Claim Form – Fill out the claim form carefully and make sure to provide all necessary information to avoid delays
• Submit the Claim – Submit the form and required documents through the insurer's preferred channels
• Provide Additional Information – If the insurer asks for more details or documents, provide them quickly to keep the process moving
• Claim Assessment – The insurer will review the claim, documents, and policy terms, and may investigate if needed
• Claim Settlement – Once approved, the insurer will pay the settlement amount as per your policy, via bank transfer or cheque
• Seek Assistance if Needed – If you need help or have any questions during the process, contact the insurer’s customer service or claims department

Note - Here is the list of the documents required to file a claim —

• Original policy document
• Death certificate (if the life assured passes away)
• Identification documents like Emirates ID
• Claim form (provided by the insurance provider)
• Medical records (if possible)
• Other supporting documents (as required by the insurance provider)

Glossary 

Frequently Asked Questions