A life insurance policy is one that protects an individual or family from unexpected events such as the insured's death. Contracts between individuals and companies are involved. It provides financial stability to your family by covering the policyholder's illness and death. This is a life insurance policy that guarantees and sustains your life. There are numerous beneficiaries associated with life insurance. There are also some unique features in it. For this, the insured pays a premium amount to protect the insured's family. These rates are determined by the policyholder's age, medical history, income, and other factors.
As per a survey, nearly 51 percent of UAE residents do not have a Life Insurance policy, 36 percent believe it is too expensive, and the remaining people are unfamiliar with the term. However, an appropriate life insurance policy can help to fill some of this void by ensuring the financial security of the insured's family. People in the UAE have yet to embrace life insurance.
Types of Life Insurance Plans in Dubai and Across the UAE
Life insurance is available in the UAE in a variety of forms. They are:
Term Life Insurance
Term insurance is one of the most basic types of life insurance. It provides the most cost-effective protection for your family and loved ones. This provides your family members with long-term financial stability and security for a set number of years. If the insured dies during this term, a death benefit is paid.
Whole Life Insurance Plan
This policy is in effect for the duration of the insured's life. If necessary, the sum can also be withdrawn in parts.
Pension Plan Choosing a retirement or pension plan ensures that you will receive a regular pension income in the future. This plan ensures your financial security after you retire.
If the insured lives until the maturity date, he or she will be paid a lump sum. These are referred to as traditional insurance plans. This policy also includes a nomination option in the event of an untimely death.
Unit Linked Insurance Plans (ULIPs)
The policyholder benefits from unit linked insurance plans in two ways. On the one hand, it is a hedging tool used to protect the policyholder's loved ones from financial difficulties caused by the policyholder's death, and on the other hand, it is an investment tool. The policyholder can invest a portion of the insurance premium fund in an asset class in order to generate capital growth.
Money back policy
If you pursue this policy, you will receive a sum at regular intervals. After the period's maturity, the insured can obtain the balance sum amount. If the insured dies, the nominee receives the entire sum.
Who is Eligible to Apply for Life Insurance Plans in the UAE?
Everyone now needs to have a life insurance policy. If they meet the eligibility criteria established by the insurance provider, all UAE residents are eligible to apply for a life insurance policy.
Eligibility Requirements for Purchasing Life Insurance Plan:
- To be eligible for an insurance agreement, applicants must be between the ages of 18 and 75.
- Applicants must have a consistent and reliable source of income.
- The policyholders must be UAE residents and have documentation proving their residency.
- Emiratis can choose life insurance UAE plans if they have the necessary documents.
- Life insurance for expats in the UAE is also available, provided they have the necessary documents.
Documents Necessary to Purchase a Life Insurance Plan
To purchase a life insurance plan/policy in the UAE, an applicant must submit the following documents:
- Passport-sized photographs
- Passport with Emirates ID and UAE residence Visa is a type of international travel document (for expats)
- Proof of Residence (For example utility bills)
- Bank statements from the previous three to six months
- Income certificate
- Salary Slip
- Proof of health status
Best Companies who Provide Life Insurance Plans in the UAE
The following are the top five best life insurance companies in the UAE:
AXA Life Insurance
AXA is a well-known French insurance company that provides a wide range of insurance services and products all over the world. Its headquarters are in Paris, and it primarily serves the Middle East, Europe, North America, the Indian Pacific Region, and the African subcontinent. AXA life insurance UAE is well-known for providing its customers with customer-friendly and innovative insurance solutions.
Zurich Life Insurance
Zurich life insurance is well-known for providing financial assistance to the nominees of policyholders who rely on them in the event that they are no longer alive to assist them. It offers customers a variety of life insurance plans from which they can choose the one that best meets their needs. Policyholders can also obtain Zurich critical illness insurance, which is an additional benefit offered with life insurance plans.
Life Insurance Corporation is an Indian insurance company that has established subsidiaries in the United Arab Emirates under the name LIC International. LIC life insurance provides a wide range of plans to meet the basic needs of policyholders and their families. A LIC policy provides benefits such as provisions for retirement, future planning, children's weddings, and education.
MetLife Life Insurance
MetLife life insurance provides a simple and adaptable set of solutions to help policyholders secure the future of their families. It provides the family with financial security as well as the peace of mind that comes with it. These insurance policies provide life insurance as well as the possibility of future investment. It provides customers with a variety of life insurance policies to choose from, as well as a joint insurance coverage plan.
FPI Life Insurance
FPI Life Insurance is a global insurance provider with years of experience in the insurance industry. It provides a variety of insurance products and services that can be tailored to the needs of the customers. FPI life insurance protects policyholders, their families, and their businesses from unfortunate events such as premature death or critical illness.
A Step-by-Step Guide to Purchasing Life Insurance Plans in the UAE
Here are the Steps for Purchasing Life Insurance Plans in UAE:
Choose the Policy Type
The first and most important step in purchasing life insurance in Abu Dhabi and throughout the UAE is to select the type of policy. Insurance seekers should evaluate their insurance needs and budget before researching online life insurance to determine the type of policy.
Determine your Coverage
The next step in the process is to determine how much coverage the life insurance Dubai plans will provide in order to effectively meet the financial obligations of the loved ones. For a safe and secure future, one should typically obtain coverage equal to ten times one's current annual income.
Examine your Financial Situation
Because life insurance is a long-term commitment, it is critical to check and analyse the budget before purchasing life insurance plans in the UAE.
Compare Life Insurance Quotes
To obtain different life insurance quotes, the applicant can conduct research online on the official website of the life insurance provider or a web aggregator, or contact insurance provider’s offline at their official contact number.
Compare, Shortlist, and Buy
The final step is to compare different life insurance quotes based on criteria such as pricing and features, after which the provider and plans are shortlisted. Finally, select the best life insurance policy that fits your budget and all of your insurance needs.
Anyone who has a family to support and earns an income requires Life Insurance. Housewives, too, require life insurance coverage due to the economic value of their contribution to the family. Because their future income potential is adversely affected, even children can be considered for life insurance. With our team and experts of Dhanguard get the best Life Insurance and fulfil your personal and family needs in the best possible way.