Purchase Life Insurance in UAE

There are a few life insurance companies in the United Arab Emirates that offer a range of life insurance items, such as endowment schemes, term plans, whole life insurance, ULIPs, and so on. Life insurance premiums in the UAE vary depending on the applicant's age, medical history, amount guaranteed, salaries, and a variety of other factors. Fill out the form for expert guidance from our knowledgeable team at Dhanguard.

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Life Insurance

In the United Arab Emirates, there are a few life insurance firms that sell a wide variety of life insurance products, including endowment policies, term plans, whole life insurance, ULIPs, and so on. Premium rates for life insurance in the UAE differ depending on the applicant's age, medical background, amount guaranteed, wages, and a number of other variables.

According to a survey, nearly 51% of UAE residents do not have a life insurance policy, 36% believe it is too costly, and the rest are unfamiliar with the word. An adequate life insurance policy, on the other hand, will help to fill some of this void, guaranteeing the financial stability of the insured's family. In the United Arab Emirates, life insurance has yet to gain prominence.

Life insurance is an arrangement between a policyholder and an insurance broker in which the insurer or insurance company agrees to pay a defined amount of a death benefit to the beneficiary if the policyholder dies suddenly during the policy's period.

In exchange, the insured offers to pay a set amount of money as a daily premium, a restricted premium, or a one-time premium. One can guarantee the financial stability and welfare of their family's future by buying sufficient life insurance coverage.

The following are the measures involved in life insurance in Abu Dhabi and the UAE:

Step 1: The policyholder pays the insurance firm the required premium.

Step 2: In the event of the policyholder's untimely death during the policy duration, an insurance provider guarantees to pay an amount guaranteed to the beneficiary. As a result, it guarantees the policyholder's a financial security.

Step 3: If the life insured survives to maturity, the policyholder will receive a maturity advantage. However, it is dependent on the category of policy and whether or not it provides maturity benefits.

There are variety of Life Insurance Policy in UAE, some of them are explained below-

types of Life Insurance Policy in UAE

Term Life Insurance

Term insurance is the most common and cost-effective form of life insurance policy, providing financial protection to the insured for a set period of time. A death benefit will be paid to the beneficiary if the life assured dies during the term span when the scheme is active.

Whole Life Insurance

A whole life insurance policy covers the policyholder for the rest of his or her life. The sum guaranteed is paid to the beneficiary in the event of the insured's untimely death. This form of life insurance policy, in addition to providing a death benefit, also provides an investment feature that builds up a cash value that policyholders can withdraw or borrow as needed.

Endowment Plans

Endowment policies are a form of life insurance policy that not only offers coverage in the event of the policyholder's sudden death, but also provides maturity benefits at the policy's end.

Unit Linked Insurance Plan

The Unit Linked Insurance Plan, also known as ULIP, is a mix of insurance and investment. The money invested is split into two parts since it is a hybrid scheme. A portion of the premium is used to secure your health, while the remainder is invested in the stock market to ensure future income.

Money Back Policy

The policyholder earns a percentage of the amount guaranteed at regular intervals over the lifetime of the policy in this form of life insurance policy. An insured receives the balance of the sum guaranteed if he or she survives the term. However, regardless of how many instalments have been paid out, the candidate retains the whole amount assured in the event of death during the plan's term.

Pension Plan

This life insurance policy, also known as a retirement plan, guarantees a financially stable retirement by providing a monthly income as an annuity payout, depending on the form of policy selected. This balance will be accumulated at maturity to produce a daily income stream, which is known as an annuity or pension.

 

The benefits of Life Insurance Policy in UAE are as follows-

benefits of Life Insurance Policy in UAE

Death Benefit

The life insurance company provides coverage in the form of a death benefit if the policyholder dies during the policy's term, resulting in a loss of income for the policyholder's family.

Guaranteed Income

Life insurance plans include a predetermined sum insured amount, which is paid to the survivors by the insurance company upon the policyholder's death.

Coverage for Health Expenses

Critical disease and hospitalization costs are also covered by life insurance plans. In the event of a disability or a diagnosis of a disease, a life insurance policy requires you to pursue appropriate care.

Peace of Mind

Purchasing the right life insurance policy offers peace of mind, ensuring that in the case of an unexpected event, the safety of one's loved ones will be taken care of.

Helps in Wealth Creation

There are several life insurance policies on the market that provide both coverage and investment opportunities. The policyholder's premium is dissected and used to provide coverage and investment incentives.

Add on Riders

Many life insurance policies in the UAE provide add-on riders such as temporary/permanent disability coverage, serious illness coverage, terminal illness coverage, waiver of premium value, personal accidental coverage, and so on, which are supplementary coverage over the standard plans that are normally purchased with the intention of expanding the plan's protection.

The following are some of the basic conditions for life insurance firms in the United Arab Emirates:

  1. To be able to enter into an insurance policy, applicants must be between the ages of 18 and 75.
  2. Applicants must provide a steady and consistent source of income.
  3. The applicants for policies must be UAE citizens with proof of residency.
  4. Emiratis can choose from a variety of life insurance UAE policies if they have the required paperwork.
  5. Expats in the UAE can also get life insurance if they have the requisite paperwork.

What is the payment option available to pay Life Insurance Premiums in UAE?

Life Insurance premium payments can be made in the following formats:

  • Bank Transfer
  • Direct Debit Card
  • Credit Card
  • Post Dated Cheques

Top 5 Life Insurance Companies in UAE

The top 5 best life insurance companies in UAE are as follows-

AXA Life Insurance

AXA is a well-known French insurance company that provides a wide variety of insurance services and products all over the world. It operates mainly in the Middle East, Europe, North America, the Indian Pacific Region, and the African subcontinent, with its headquarters in Paris. AXA Life Insurance UAE is well-known for providing its customers with customer-friendly and creative insurance solutions.

Zurich Life Insurance

Zurich life insurance is known for providing financial support to the nominees of policyholders who depend on them in the event that they are no longer around to assist them. It offers consumers a variety of life insurance policies from which they can choose the one that best fits their needs. Zurich serious illness insurance is an extra benefit available to policyholders.

MetLife Insurance

MetLife life insurance provides a clear and versatile set of options for assisting policyholders in protecting the security of their families. It gives the family financial stability as well as the peace of mind that comes with it. These plans include life insurance as well as the ability to invest in the future. It provides a range of life insurance plans to the general public. It offers different kinds of life insurance policies to the customers to select from along with a joint insurance coverage plan as well.

FPI Insurance

FPI Life Insurance is a global insurance company with decades of experience in the insurance industry. It provides a range of insurance products and services that can be personalized to suit the needs of customers. FPI life insurance covers policyholders, their relatives, and their businesses from unexpected incidents such as premature death or serious illness.

Union Life Insurance

Union Insurance Company was established in 1998 and is based in Dubai. It is listed on the Abu Dhabi Securities Exchange.

Union Insurance is one of the UAE's leading insurance providers, offering a diverse range of life insurance products with a variety of benefits in order to provide consumers with much-needed financial protection.

The insurer, which is backed by some of the industry's most professional and seasoned people, delivers superior pricing and cutting-edge insurance coverage.

Union Insurance Company has a variety of life insurance policies to choose from. All of these plans are customized to meet the needs of any person seeking to protect their future through life insurance policies that provide full coverage and return on investment.

Life Insurance Related FAQ

Frequently Asked Questions