8 reasons why NRI should buy Term Insurance in UAE

Until a few years back, many NRI had short-term plans for living and working in the UAE. But now things are changing, and people have started thinking long-term.

A majority of NRI are considering living longer or even retiring in the UAE, given the peerless infrastructure, tax-free income, and great standard of living.

Along with various other improvements, NRI Life Insurance in the UAE has become very attractive proposition, offering a wide scope of coverage at affordable premiums. 

Here are 8 compelling reasons why NRIs should invest in term insurance in the UAE:

1. Critical Illness Benefits Rider

Enhance your NRI term life insurance with a critical illness rider. Many providers in the UAE, such as Zurich International Life, MetLife, Salama, and Friends Provident International, cover up to 36 critical illnesses.

This rider provides a cash lump sum upon diagnosis of an illness covered by the policy, ensuring you remain financially independent, even while recovering from a major ailment. Insurance companies in the UAE offer critical illness cover with a wide scope and well-defined terms, eliminating ambiguities and making the claim process seamless.

2. Critical Illness Cover up to age 80:

How would you feel if someone snatched your umbrella just when it was about to rain?

Life Insurance companies in many countries offer critical illness benefits only up to the age of 60-65. 

While there are risks of developing critical illness at any age, the chances of getting critically ill are higher as the person ages.

Not having this benefit beyond age 60 could put your retirement savings at risk.

Given the increasing life expectancy, people are having to work even after age 60, and this benefit can protect against loss of income in such events. 

Insurance companies like Zurich International Life offer critical illness coverage up to age 80, with a wide scope of coverage.

3. High Coverage Amounts

With term insurance plans for NRIs in the UAE, you can secure critical illness coverage up to $2 million. Financial experts recommend coverage equivalent to 3–5 years of your annual income to adequately protect against unforeseen challenges.

4. Transparent and comprehensive underwriting

Thanks to vast experience in covering critical illness, insurance providers in UAE have developed thorough underwriting systems. Hence they ask the right questions and conduct necessary tests before accepting the risk. 

This comprehensive underwriting activity eliminates the possibility of delays in claims; hence the providers in UAE have good claims settlement records on critical illness and life insurance claims.

For Eg: The average time taken to pay a claim in 2023 was 72 hours.

Source: Customer Claims Paid Report 2024 - Middle East Insights

On the other hand, companies in other countries have recently started offering critical illness plans.  Hence the precedence of claims is hardly there, making it difficult to understand the claim process of such policies.

Events like Covid-19 and lockdowns can make claims processing more challenging.

5. Hassle-Free Claims

UAE insurance companies are renowned for their efficient claims process. With experienced providers like Zurich, MetLife, and Salama, you can expect timely settlements. Their global customer support ensures you and your family have access to funds when you need them most.

6. International Portability and Tax Efficiency

Term insurance for NRIs in the UAE is internationally portable. This means your coverage remains intact even if you relocate. You avoid the higher premiums and risks associated with buying new policies in other countries. 

7. US Dollar-Denominated Plans

Term insurance plans for NRIs are denominated in USD, protecting against rupee depreciation. With the Indian rupee consistently losing value over decades, USD-based insurance ensures the real value of your benefits is preserved.

For example, the Indian rupee has depreciated by over 60% in the past decade, averaging 6% annually. A USD-denominated plan shields you from these adverse effects, making it a strategic financial choice for NRIs.

8. Easy Access to Insurance Proceeds

One of the standout features of term insurance for NRIs in the UAE is the ease of accessing proceeds globally. Your family can use the benefits to:

• Pay off loans and mortgages in or outside the UAE.
• Cover higher education expenses for children abroad.
• Maintain their lifestyle as expats, even in the event of a major illness or loss of income.

In contrast, accessing funds from insurance policies in India involves cumbersome approval processes, currency risks, and potential tax complications.

In Summary

When selecting a term insurance plan for NRIs, consider these 8 key factors to maximize your protection and peace of mind.

What About You?

Are you adequately covered against loss of income due to death, disability, or critical illness? If not, what’s holding you back?

Take the first step today. Schedule a free consultation to discuss your protection needs and receive professional guidance on choosing the most suitable NRI term insurance plan.

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