Best Term Insurance for NRI in UAE

In the UAE, many insurance companies offer specifically designed term insurance for NRIs. These plans make it easy for you to secure coverage and provide a reliable financial safety net for your family. Whether you are new to the UAE or have been residing there for a while, choosing an appropriate term insurance plan means you can enjoy peace of mind knowing that your family’s future is secure.

Can NRIs Buy Term Plans in UAE?

Insurance companies in the UAE offer a range of term insurance policies specifically designed for Non-Resident Indians (NRIs). These plans provide coverage for a defined period, ensuring financial protection for your family in the event of your untimely death. 

To purchase a term plan, NRIs need to meet certain requirements, including:

• Proof of identity
• Residency status
• Health information 

With a variety of options available, securing term insurance for NRIs in UAE is a feasible and practical step for NRIs to protect their loved ones financially.

Reasons to Purchase Term Insurance for NRI in UAE

1. Affordable Premiums: Term insurance for NRIs in UAE offers high coverage at relatively low premiums, making it a cost-effective choice for NRIs.
2. Financial Security: It provides a financial safety net for the policyholder’s family, and helps cover living expenses, debts, and other needs.
3. Various Payment Options: Flexible payment methods including monthly, increasing monthly, lump sum, or a combination of lump sum and monthly instalments.
4. Debt Coverage: Helps in clearing any outstanding debts or loans, preventing financial strain on your loved ones.
5. Legal and Financial Planning: Assists in comprehensive estate planning and ensuring that your assets are well-managed and distributed.
6. Secure Children’s Future: Receive funds for children’s education or marriage, securing their future despite your absence.

How Do Term Insurance Plans For NRI Work in UAE?

Term insurance for NRIs functions like other term plans —

Premium Payments: You will make regular premium payments to the insurance company.

Sum Assured: In return for these payments, you’ll secure a guaranteed sum assured.

Payout to Beneficiaries: If you pass away during the policy term, the sum assured will be paid out to the nominated beneficiary.

Optional Add-Ons: You can choose additional riders or add-ons to expand your coverage options as per your specific needs. The available riders are —

• Accidental Death Rider: This is an additional payout on top of the base death benefit if you die due to an accident. The premium for this rider remains constant throughout the policy term.
• Permanent and Partial Disability Rider: This offers regular payments if you suffer permanent or partial disability due to an accident. Payments are made for a fixed period, based on a predetermined percentage of the sum assured.
• Critical Illness Rider: You can get a lump sum payout upon diagnosis of a critical illness specified in the policy. They include illnesses such as heart attack, cancer, stroke, or kidney failure and more.
• Premium Waiver Rider: With this rider, if you can't pay future premiums due to income loss or disability. The premiums will be waived and your policy will remain active.

Best Term Insurance for NRIs in UAE

Tabled below are the term plans for NRIs in UAE with the life cover they provide and the policy terms —

Note: The above amount and tenure are for a 28-year-old non-smoker male with a monthly income of AED 15,000. The actual terms may vary as per your age and lifestyle. 

Documents Required for Term Insurance for NRI in UAE

When applying for a term insurance plan as an NRI in the UAE, you may need to provide the following documents:

• Original and a copy of Emirates ID
• Original and a copy of valid passport with residency visa
• Trade licence (for self-employed individuals)
• Proof of Income
  • For Salaried Individuals: Salary slips, salary structure, or an appointment letter
  • For Self-Employed Individuals: Bank statements, company records 
• Passport-size photographs as specified by the insurer

How to Purchase NRI Term Insurance in UAE?

Follow these steps to secure a term plan for NRI in UAE —

1. List Your Insurance Needs: Begin by assessing the type of coverage you require, including the policy term, coverage amount, and any additional riders based on your personal preferences.
2. Visit the Policybazaar’s Portal: Go to the website and click on ‘term insurance’ under the Insurance section to explore available plans for NRIs. Then, fill out the form on the right side and get directed to the “Quotes” page. 
3. Select the Right Plan: Review the features and benefits of different plans to choose one that best suits your needs.
4. Submit Your Application: Complete the application form with your personal details such as name, age, and income. Then, proceed to the next step.
5. Make the Premium Payment: Pay the insurance premium to finalise the purchase. Use an online term insurance calculator to estimate the premium amount and ensure it fits within your budget.
6. Receive Policy Documents: After payment, you will receive your insurance documents via email and postal mail confirming your policy and coverage details.
   
   If you have any questions or need assistance, contact the insurer’s support team.

Key Points to Consider Before Purchasing Term Life Insurance for NRIs in the UAE

• Age Limit: Applicants should be between 18 and 74 years old
• Premium: Starting from just AED 50 per month, applicants can get AED 1 million life cover*
• Policy Terms: Available terms include 10, 15, 20, 25, 30, 35, 40, and 45 years
• Maximum Term: Up to 45 years
• Global Coverage: Coverage usually valid worldwide
• Riders: Popular ones include critical illness cover, waiver of premium, total or partial disability cover, and so on

*T&Cs apply

To Conclude

When selecting term insurance for NRIs in UAE, consider factors such as the insurer’s reliability, claim settlement ratio, additional coverage options, policy comparison, and pricing. 

Term insurance offers a cost-effective way to secure your financial future while providing peace of mind. Evaluate different policies online, comparing features, benefits, and coverage to find the best option that meets your unique needs and preferences.

Frequently Asked Questions