Best Life Insurance in UAE

What is Life Insurance?

Life Insurance is a simple answer to one of life's most difficult questions. How will my family manage financially when I die?

While it is almost impossible to replace what you are to your family, you can certainly make provisions to replace your income via adequate life insurance.

If you have people who are dependent on your income, then you need life insurance. 

It is one of the important things you will buy, driven by both fear and love.

Fear that you may not be around to take care of them financially and the love for your family to ensure that their lifestyle and aspirations are not compromised.

How does life insurance work in UAE?

Life Insurance is an efficient risk transfer mechanism. When you buy it, you transfer the risk of loss of income from your shoulders to a life insurance company for a small premium.

In the event of death during the policy term, the life insurance company will pay out the cover amount to your beneficiaries. 

While your family cannot afford the loss of income, the insurance company certainly can afford to pay the claim.

Because every year thousands of policy-holders pay their premiums helping the insurance company accumulate large sums of money. They sure can pay out a few claims every year from the money collected and the balance is invested.

"While nothing is more uncertain than a single life, nothing is more certain than the average duration of a thousand lives." Elizur Wright - (1804 – 1885, American mathematician, “father of life insurance” for his pioneering work on actuarial tables).

Why Buy Life Insurance in Dubai?

You may consider buying life insurance for one or more of the following reasons;

• Replace Lost Income - When you die your income stops but many expenses except the life insurance premiums continue. Your life insurance policy will replace your income to support the lifestyle of your loved ones.

• Pay Off Debt - You don't want your debt to leave a burden of debt for your family to repay, do you? Covering your debts like a mortgage, or a business loan with life insurance can protect your estate.
• Fulfill Dreams and Promises - You may have many dreams and aspirations for your family like sending your children to the best university. You may also have made a few promises to them. You can fulfill those dreams and keep those promises even when you are not around with adequate life insurance. 
• To pay for the repatriation expenses of your family and help them start a new chapter without you
• Leave a legacy - It is the most affordable way to build a large legacy.

• Estate Equalization - It can help you divide the assets among your heirs without having to break them down or sell them. 
• Add on Living Benefits - You can buy many living benefits like critical illness cover, disability benefits, etc along with your life insurance in Dubai.
• If you are from a country that levies an estate tax, Life insurance can help your heir fund the estate tax to claim your assets.
• As Keyman insurance to ensure your business continuity
• To establish a corpus for a charity, if you support a charitable cause.
  

How to Get Life Insurance in UAE?

Getting life insurance in the UAE involves a series of steps similar tailored to meet your protection needs and budget. 

1. Determine Your Needs: The first step is finding out, how much insurance, you need. Think about if you want your family to stay in the UAE, or if they should move back to your home country or somewhere else.

   Calculate how much they would need to maintain the same lifestyle. Add the cost of schooling for the balance years from today. Include the cost of higher education and marriage expenses if you want to protect these goals as well
   
   Don't forget to include any debts like a house loan or other loans that need to be paid off after you pass away. Also, remember to account for inflation and how it will increase your family's future financial needs.
   
   
2. Understand the Types of Life Insurance:
   
   Life Insurance can be generally classified into 4 broad categories;
   • Term Insurance
   • Endowment plans
   • The Whole of Life Insurance
   • Universal Life Insurance

   There could be many sub-variants of the above categories. The categories are discussed in detail in this post. 

1. Research Providers: Look into various insurance companies that offer life insurance in the UAE. Consider their reputation, financial stability, customer service, and the policies they offer. You can start by visiting their websites, reading customer reviews, and seeking recommendations from friends or financial advisors.

2. Get Quotes: Contact several insurance providers to get quotes. Be prepared to provide personal information, including your age, health history, occupation, and lifestyle habits. These factors will influence the cost and terms of your insurance policy.

3. Consider Additional Riders: Riders are additional benefits you can add to your policy for an extra cost. Common riders include critical illness cover, accidental death benefit, and waiver of premium.

4. Apply for a Policy: Once you've chosen a provider and a policy that meets your needs, complete the application process. This typically involves filling out a detailed questionnaire about your health and lifestyle, and possibly undergoing a medical exam.

5. Review and Sign Your Policy: Carefully review the policy details, including the coverage amount, premium, terms, and exclusions. Make sure you understand your obligations and the benefits provided. If everything is in order, sign the policy to begin your coverage.

6. Regularly Review Your Policy: Your insurance needs may change over time due to changes in your personal or financial situation. Regularly reviewing your policy ensures that your coverage remains aligned with your needs.

It's also advisable to work with a financial advisor or insurance broker who can guide you through the process, compare different policies, and help you make an informed decision. Remember, the goal of life insurance is to provide financial security and peace of mind for you and your loved ones.

Types of Life Insurance in UAE?

Term Insurance

The most affordable form of Insurance, with a choice of riders like Critical illness Benefits, Waiver of Premium & Disability coverage. As the name suggests it covers over a specific term, usually up to age 80.

There is no cash surrender value during or at the end of the policy. 

Click here to learn more about Term Insurance

The whole of Life Insurance

Aims to provide life cover, critical illness cover, and other living benefits for the whole life. Also provides access to a wide range of Investment funds and Strategies to help you Grow Wealth and Protect against Loss of Income.

Comes with the flexibility to add or remove benefits, and also to increase or decrease the premiums and coverage amounts in the future.

Click here to learn more about Whole of Life Insurance

Endowment Plans

Much like term insurance, endowment plans provide coverage up to a certain number of years. On maturity, the premium invested along with the bonus is paid back to the insured. 

It is a fine blend of risk protection and savings leading to an assured wealth accumulation strategy.

Click here to learn more about Endowment Plans

What Affects Your Life Insurance Premiums and Costs?

How to Enhance the scope of your life insurance in UAE?

What to consider before buying Life Insurance in UAE.

Frequently Asked Questions

1. How much life insurance do I need?

The thumb rule on how much life cover Expats should have is at least 10 times their annual income. If you have as much,  it can support your family for at least 15-20 years considering future inflation and changes in lifestyle. 

If you are looking to cover your children's higher education and other key aspects, you might want to add more cover.

I have built a calculator to determine how much life insurance you need to cover the following;

• Your family's lifestyle
• Your mortgage or other liabilities
• Schooling expenses of your children
• To provide for higher education, marriage, or other goals
• To provide for your aging parents etc,...

Arrange a Free consultation to help you determine the right amount of cover you should have, along with suitable living benefits. 

2. Which is the best insurance in UAE?

4. Where can I get the claim settlement statistics of Life Insurance companies in the UAE?