Feature and Benefit of Life Insurance in Dubai

By Ananya - 31 Mar 2022 Last Updated: 19 May 2022
Feature and Benefit of Life Insurance in Dubai

To secure the family's future, you need to plan for unpredictability in advance, and a life insurance plan is the best tool for doing so. Because the UAE is one of the largest insurance marketplaces, you may quickly discover a variety of life protection policies that meet your financial demands.

Along with basic protection plans, you can choose investment and savings-oriented strategies that generate cash value over time and provide you with additional financial benefits. The article below provides details about various Life Insurance, their features, benefits, the best Life Insurance Plans in the UAE. 

What is Life Insurance?

Life insurance is a contract between an insurance provider and a policyholder. The insurer pays death benefits to the policyholder's beneficiaries in the event of the policyholder's unpredictable death. The policyholder pays a regular or lump sum premium in exchange for the security granted.

How Does Life Insurance Work in Dubai?

Life insurance in Dubai operates in the following steps:

Step 1: The policyholder pays the insurance provider's premium.

Step 2: An insurance company assures to pay an amount to the beneficiary in the event of the policyholder's untimely death during the policy period. As a result, it ensures the financial well-being of the policyholder's family members.

Step 3: If the life insured survives until maturity, a maturity benefit will be paid to the policyholder. However, it is dependent on the type of policy and if it provides maturity advantages.

Why Should You Buy a Life Insurance Plan in Dubai?

A Life Insurance Plan also provides you with other benefits such as critical illness coverage, investment opportunities, financial growth options, etc. 

The following are some of the benefit to purchase a life insurance policy in the UAE.

  • A Life Insurance Policy allows your dependent family members to maintain their living standards without sacrificing their daily needs.
  • Life Insurance functions as a substitute for your income.
  • Various life insurance policies have an investment component. After a predetermined period, you begin earning maturity benefits depending on your investment returns.
  • Along with the essential protection, you can put extra riders such as critical and terminal illness coverage, accidental death compensation, etc.
  • You can protect your life against a large assured sum while paying fewer insurance premiums with term life insurance.
  • Endowment Life Insurance plans have a savings component and provide maturity benefits based on the cash value at the termination of the insurance term or as determined when acquiring a life insurance policy.
  • Your recipient can choose to pay the assured sum against an active loan or mortgage through various payout choices. Alternatively, depending on their financial needs, they can receive it regularly.
  • Insurance providers in the UAE provide a quick and easy claim process to make things easier for your beneficiaries during difficult times.

Feature of Life Insurance in Dubai

Life insurance offers much-needed financial security during unforeseen events. You receive plenty of features that improve your overall safety along with the protection.

The following are the features and benefits of UAE life Insurance Plans.

Death Benefits

In the case of the policyholder's demise, the insurance provider pays the death benefit to the beneficiaries as stipulated in the contract.

Investment Components

When you get whole life insurance, you receive two types of long-term benefits based on your insurance plan and the other on your investment component inside the program. A fragment of your premium is invested in equity or debt funds based on your preferences. You will obtain a significant return upon maturity.

Maturity Benefits

Your life insurance plan's maturity benefits might double the amount you get at the end of your insurance tenure. If the policyholder outlives his policy term without filing an insurance claim, all premiums paid during the time are refunded at maturity. In this way, life insurance serves as a savings tool and provides you with life security. You may locate various life insurance plans in UAE that give maturity benefits and meet your financial goals with some effort.

Coverage against Liabilities 

You may have needed a loan, mortgage, or another type of debt to accomplish your dreams at times. You can return your loan installments with your regular salary.  In such instances, the insured sum from your life insurance policy might assist your family in paying off loans and other liabilities without difficulty, even if you are not there.

Flexible Payout Options  

With a life insurance plan in the UAE, you have the option of receiving flexible payouts. When you get a life insurance policy, you can instruct your insurer to pay a lump sum or a specified regular installment on a monthly or yearly basis. Your beneficiaries can also select the type of payout that is best for them when filing a claim.

Purchase Convenience

You may buy a life insurance plan online by visiting online insurance aggregators. Simply enter your information, and the representatives will walk you through the entire application process.


Investing in a Life Insurance Plan is one of the efforts you can take to financially secure your life goals, thanks to the many features and benefits of life insurance at your disposal. Before you buy a life insurance policy, make sure to look into the features that are available so that you may customize the policy to your specific needs.When setting up a comprehensive life insurance plan for yourself, approaching a specialist like Dhanguard, who works at the convergence of financial markets and policies, can be quite beneficial.

Investment is made simple and hassle-free with Dhanguard in Dubai, UAE. We provide you various investment options like Index Fund, Gold, Mutual Fund, Stocks, SIPs, Bonds, life insurance, Sukuks with the minimum possible trouble including paperwork & payments.

By Ananya

31-Mar, 2022

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