Life insurance is a financial product designed to protect you, your family, and your business against the loss of life, whether through illness, accidental or natural death. Readily available across the emirates from an array of insurance companies, there are various types of life insurance in Dubai and the UAE, each offering different levels of protection, benefits and costs, so it’s important to understand the different types available and their key features.

The most commonly offered types of life insurance in Dubai are:

Term Life Insurance

Term life insurance offers a death benefit and term length ranging from 5 to 30 years. Depending on the policy and plan, premium payments may remain fixed, or increase over time. Term life insurance is generally less expensive than other types of policies and provides coverage for a specific period of time (term), making it ideal for offering security when taking out any form of finance, such an auto or home loan. Indeed, many lenders make it a term and condition of lending approval that proof of such insurance is in place prior to releasing any funds.

Whole Life Insurance

Whole life insurance is a permanent policy that offers coverage for the entire life of the insured person. The amount of the death benefit remains level and the premiums remain the same. This type of policy may also accumulate a cash value from the premiums paid which can be used as a loan advance or withdrawn as money. Such policies are known as unit linked or investment policies and professional advice should be sought before purchasing one to fully understand how they operate, and how projections of return on investment can be obtained. Alternatively, a straightforward whole of life policy with a low-risk, managed funds option can be purchased in order to better guarantee fixed sum insured payout on death.

Universal Life Insurance

Universal life insurance can provide permanent coverage and also offer coverage for a specified period of time. In universal life insurance, cash value accumulates and can be used to adjust the death benefit and premium payments over time.

Fixed Universal Life Insurance

Fixed universal life insurance provides a death benefit, but allows policyholders to save money over time by investing in the policy’s cash value account. Fixed universal life insurance has a fixed premium, so policyholders know exactly what they will be paying each month.

Variable Universal Life Insurance

Variable universal life insurance gives the policyholder the ability to adjust the death benefit, while also providing access to investment options within a tax-deferred investment account known as a “separate account.”

Income Protection Insurance

Income protection insurance provides an income to replace lost wages due to serious injury or illness, providing financial security for the short or long term. This can prove invaluable and allows you to rest and recuperate, free to focus on your recovery without worry about covering your bills in this critical period.

How To Buy Life Insurance In Dubai And The UAE

There are many ways to buy life insurance in Dubai and the UAE so you’re sure to find a method that suits you best. Whether you decide to call an insurance broker, an insurance company direct, or go online to search for what’s available, it’s easy to source a policy to suit you.

It could be a good idea to use a combination of these methods so that you’re confident you’ve bought a product that addresses your needs. For example, go online, research the subject thoroughly, note any points that you’re unsure of, and then contact a reputable insurance broker to answer those questions or areas of concern. Then it’s down to you which method you use to purchase.

Final Thoughts

When considering life insurance in Dubai and the UAE, you should take the time to carefully compare and research the different types of policies available. It is important to consider the amount of coverage required and the financial advantages or disadvantages of different plans. A comparison of features, benefits and costs should be made for each policy before making a decision.

Choosing the right life insurance policy in Dubai will give you peace of mind and financial protection in the event of death or illness.

About Author

Rachel Al Mughairi

About Author

With over 34 years in the international insurance industry in a variety of senior management roles, and as holder of the Diploma in Insurance from the Chartered Insurance Institute, Rachel surely knows her insurance! With experience in London, continental Europe and the Middle East, Rachel is here to share her knowledge and help you understand more about insurance products in this easy-to-understand series of videos and blogs.