What is Term Insurance?
Term Insurance is a simple risk-cover plan having no cash surrender or maturity value.
It covers you for a specific number of years and pays out the Sum Assured in the event of the death during the term of the plan.
It is also the most affordable form of life and critical illness insurance. The recent regulatory changes have made term insurance in UAE more affordable.
Why buy Term Insurance in UAE?
Till a few years back, people mostly were keen on buying endowment plans, which paid back the premiums along with a specific bonus on maturity.
Term Insurance has become popular off late, thanks to the awareness created on the Internet by fellow bloggers, Financial Forums and Social Media.
Before we look at the list of Top 5 Term Insurance in UAE, it is essential to understand why we should buy Term Life Insurance in the first place.
The following are some reasons why expats are more keen to buy Term Insurance in the UAE instead of types of Insurance;
- Global Cover including the United States of America
- Lower premiums in comparison to Endowment and Whole of Life Plans.
- The premium can be as low as $17.50 per month.
- Easily affordable by all sections of the society
- You can buy more of it to cover all your protection needs
- Premiums of term insurance are relatively low. You can use the savings to fund other financial goals like retirement, Children’s Higher Education, Property Purchase or Debt Pay Off.
- Easy to Understand - No complications, No ambiguities - Guaranteed cover during the term of the plan
- Fixed Premiums - Life Insurance premiums in UAE are fixed for the whole duration of the plan
- Ideal for protecting specific needs like Liability/Mortgage Cover, to cover children’s higher education, to support ageing parents or other dependents and for protecting business continuity / Keyman Insurance.
- Choice of additional riders like
- Critical Illness benefit
- Permanent Total Disability
- Accidental Death Benefit
- Family Income Benefit
Top 5 Term Insurance Plans in UAE
Now that we understand the scope and benefits of Term Insurance in UAE, we can now look at the Top 5 plans from various insurance companies in the UAE.
- International Term Assurance(ITA) from Zurich International Life Ltd.
- Live Life from MetLife
- International Protector Middle East(IPME) from Friends Provident International.
- Option 4 - Lifeguard - from Oman Insurance
- Hemaya Plus - Family Takaful Term Plan from Salama
Option 1 - International Term Assurance(ITA) from Zurich International Life Ltd.
First on the list is the term insurance plan from Zurich International Life. This plan provides a cover for a maximum term of 35 years and covers up to age 80. Zurich Term insurance provides the following riders on its term insurance;
- Critical illness benefit (34 Conditions) with the widest scope of coverage
- Permanent and Total Disability Benefit
- Waiver of Premium benefit
Zurich can boast of an outstanding claim settlement ratio and also they have the best in the industry after-sales service. .
Click here to know more about International Term Assurance from Zurich International Life.
Option 2 - Live Life from MetLife
Next on the list is the Live Life term plan from MetLife UAE. It provides financial protection for you and your family when you are unable to provide for them due to critical illness or death. The maximum policy term is 30 years and the maximum age of cover is 85.
This plan gives you two options to choose from;
- Decreasing Term Insurance with amortization rates 0%, 4%, 6% or 8%
- Level Term Insurance : A regular term plan with a maximum term of 25 years
The live life plan also has three premium payment options to select from
- Single Pay: Where you can choose to pay the whole premium as single lump sum payment. Although this is most cost effective option, it is not a viable option considering the time value of money.
Also pre paying life insurance adds is generally a bad idea.
However it can be useful for expats who are looking for an international cover but are unsure if they can continue to pay premiums when they move out of UAE.
- Limited Pay: You can choose to pay premiums for 50% of the policy term. For eg: If your policy term is 10 years, then our Premium term would be 5 years. This option helps expats pay their insurance premium faster while they are living and working in the UAE.
- Regular Pay: The regular pay option is where you pay premiums up to the selected policy term. This option is ideal for residents looking to buy term life insurance with premiums.
In addition to the usual riders, Live Life provides a Unique rider called Forever Plan.
It provides the insured with a lifetime monthly of income in case of Permanent Partial Disability or Permanent Total Disability resulting from Accident or Sickness. (Minimum guaranteed period of 20 years)
Live life also provides a free second medical opinion service and a medical discount card.
Option 3 - International Protector Middle East(IPME) from Friends Provident International.
International Protector Middle East is an award-winning Term Insurance plan from Friends Provident International. It provides you with three different cover options to choose from:
- Stand-alone life cover
- Stand-alone critical illness cover;
- Life cover or earlier critical illness cover
The premiums for IPME are very affordable, and they start at $17.50 per month.
Like Live-life, IPME also provides limited and regular pay premium payment options.
Free Second Opinion
Friends Provident International (FPI) also provides the world-class second medical opinion service provided by ‘Best Doctors®’. This is a free benefit on their International Protector Middle East (IPME) plan.
Click here to know more about IPME from FPI.
Option 4 - Lifeguard - from Oman Insurance
Oman insurance is the one of oldest insurance companies in UAE, operating since 1975 and with a Financial Strength Rating of A (Excellent) for 2020. Lifeguard is a term insurance plan offering cover for residents between age one to 80. It also comes with the level and decreasing term options.
The unique feature of this plan is that it does not differentiate on premium rate for smokers or non smokers. Which means the premium rate for smokers will be relatively lower.
The following are the riders on Lifeguard;
- Accidental death benefit
- Permanent total disability
- Critical illnesses covering 40 illnesses (additional or accelerated)
- Waiver of premium on permanent and total disability
- Hospital indemnity benefit
Lifeguard also offers the single and regular premium payment modes.
Option 5 - Hemaya Plus - Family Takaful Term Plan from Salama
SALAMA – Islamic Arab Insurance Company is a leading provider of Shari’ah compliant Takaful solutions around the world. Hemaya Plus is a Term plan with the following unique benefits;
- Maximum Age at expiry – 100 Years
- Family Income Benefit
- Accidental Total or Partial Permanent Disability
- Choice of Single or Regular monthly/quarterly/half-yearly/yearly Contribution
It an ideal solution for residents looking for Shari’a approved protection plan.
Click here to know more about Hemaya Plus Family Takaful Plan from Salama.
Expert Unbiased Advice & Free Consultation
As an Independent Financial Advisor with more than 15 years experience, I can help you choose the best life insurance in uae, after considering the various options, your protection needs and budget.
Arrange a free initial consultation for a detailed report on your protection needs and appropriate recommendations.