People buy term insurance plans to make sure that their family stays safe when they are not around. Term insurance in the UAE offers a wide range of features and benefits to ensure that they help your family deal with their financial crisis.
Most of the Term insurance plans in the UAE offer affordable prices and come with two primary objectives.
- To offer an adequate income to the family in case of the unfortunate death of the policyholder.
- To provide insurance cover for at least sixty-five years or a specific part of the policyholder’s life when they intend to work.
In this post, we will help you understand what term insurance is and how it works, followed by a list of top five term insurance plans in the UAE.
What is Term Insurance?
Term insurance is a type of insurance that offers high insurance cover at the lower insurance premium. When someone buys term insurance in the UAE, a lump sum payout is provided to the nominee in case of the policyholder’s death during the policy term.
With the insurance amount, the family members can pay their expenses and manage their finances better if there is no other source of income.
The best insurance companies in the UAE offer Term Insurance Plans at reasonable insurance premiums. Sometimes, the individuals can also opt for extended insurance coverage by including the clauses like terminal illness, critical illness, disability, etc., in their term insurance policies.
Types of Term Insurance Plans in the UAE
Here are the most popular types of term insurance plans offered by insurance companies in the UAE.
- Basic Term Insurance Plan
These term insurance plans offer high insurance cover at low insurance premiums. With basic term insurance plans, the policyholder’s family gets the lump sum payout based on the amount they chose at the time of purchase.
- Level Term Insurance Plan
The insurance premium amount remains the same in Level Term Insurance Plans. Here is the list of categories the Level term Insurance plans offer.
- Single Pay: Full insurance amount to be paid at the start of the policy
- Regular Pay: The insurance premiums to be paid throughout the policy
- Return of Premium: The insurance company pays back a part of the already paid insurance premium at the end of the policy period.
- Limited Pay: the insurance premium to be paid for a limited period while the term is valid for a longer time.
- Group Term Insurance Plan
These types of term insurance plans offer insurance benefits for all the members of the insurance policy. Group Term Insurance Plans in the UAE are purchased mainly by the organizations that provide insurance to their employees.
- Annual Renewable Term Insurance Plan
In the Annual Renewable Term Insurance Plan, the premium amount changes after a specific period. This type of term insurance plan has become cheaper nowadays when compared to the Level Term Insurance Plans. However, they come with higher insurance premiums when taken for a longer duration.
Top 5 Term Insurance Plans in the UAE
Here is the list of the best term insurance plans in the UAE.
- Oman Insurance – Lifeguard
A Lifeguard term insurance plan from Oman Insurance helps your family members deal with immediate financial liabilities in your absence. The best part about this term insurance plan is that it covers the family expenses with the business and outstanding loans.
With this term insurance plan, you can safeguard your family’s financial stability and also help them manage their living standards when you are no longer available to provide.
The term insurance plan can be purchased by UAE residents of age between one and eighty years. The term insurance plan also enables policyholders to choose decreasing term options based on their financial needs.
Another good thing about the term insurance plan is that it offers almost the same premium amount for smokers and non-smokers.
Here are the benefits and features offered by the Lifeguard Term insurance Plan.
- Optional Spouse Cover
- No medical tests required for individuals of age 46 years and below
- Permanent disability or critical illness covers till the age of 65
- Flexible insurance premium options
- Attractive insurance premiums for non-smokers
- Free medical tests at policy inception
The Lifeguard Term Insurance offers attractive riders to be added to the insurance plan. Here is the list.
- Permanent total disability
- Hospital indemnity benefit
- Critical illnesses covering forty illnesses
- Accidental death benefit
- Waiver of premium on permanent disability
The Lifeguard Term Insurance Plan offers two premium payment methods – Regular and Single.
- MetLife – Live Life
The Live Life Term Insurance Plan of MetLife is the best comprehensive term insurance plan in the UAE. It offers various features and benefits to help meet the expectations of the policyholders.
The Live Life Term Insurance Plan provides term insurance with three premium payment options – Single, Regular, and Limited.
Here are the features and benefits of the Live Life Term Insurance Plan of MetLife.
- Flexible payment mode options
- Customizable plan based on ever-changing needs
- 30-days free look period
- 24/7 worldwide protection
- Complimentary Second Medical Opinion
- Free MetLife Discount Card
- Free access to myMetLife and Financial Wellness
- Transparent pricing benefits with no hidden fees
- Optional Protection Benefits like Waiver of Premiums on Permanent Total Disability
Live Life Term Insurance Plan of MetLife allows the policyholders to add different riders to their term insurance plan. For example, the Forever Plan.
The Forever Plan provides the policyholders with a free second medical opinion and medical discount card. With this plan, the policyholders get a lifetime monthly income if they permanently or fully are disabled. The policyholders can take this offer for a maximum period of 20 years.
- Friends Provident International – International Protector Middle East (IPME)
IPME is an excellent award-winning term insurance plan provided by Friends Provident International. It offers three types of insurance covers for the policyholders.
- Stand-Alone Life Cover
- Stand-Alone Critical Illness Cover
- Earlier Critical Illness or Life Cover
The International Protector Middle East Plan enables the policyholders to get a free second medical opinion service. The term insurance plan offers two kinds of premium payment methods – Limited and Regular.
- Salama – Hemaya Plus
Hemaya Plus is one of the most functional Family Takaful Term Insurance Plan provided by Salama. The term insurance plan comes with a maximum expiry age of a hundred years.
Here are the features and benefits of the Hemaya Plus term insurance plan offered by Salama.
- Family Income Benefit
- Premium waiver for accidental total or partial disability
- Flexible payment methods including yearly/half-yearly/quarterly/monthly payments based on the users’ preferences
This is the best term insurance plan for people looking for a Sharia-compliant protection plan. The term insurance plan offers two payment methods – Single or Regular.
- Zurich International Life Limited – International Term Assurance (ITA)
International Term Assurance (ITA) is a leading term insurance plan offered by Zurich International Life Limited. The company provides an excellent claim settlement ratio and the best-ever service for the policyholders.
Here are the features and benefits of International Term Assurance (ITA) from Zurich International Life Limited.
- The insurance cover offers term between 5 to 35 years term
- The applicants between the age of 18 and 74 years can buy the term insurance plan.
- The maximum age of maturity should be 79 years or less
- No maturity or cash surrender value
The term insurance plan pays the agreed lump sum amount in case of unfortunate death of the policyholder during the policy term. Here are the optional riders you can add to your International Term Assurance Plan.
- Waiver of Premium: With this benefit, the company pays the due premiums on your behalf in case you are injured or disabled by illness or accident.
- Critical illness Benefit: With this benefit, the company pays out an agreed lump sum amount in case you are diagnosed with one of the disabilities or illnesses mentioned in your term insurance policy.
- Permanent or Total Disability Benefit: With this benefit, the insurance company pays a lump sum amount in case you become permanently disabled and are unable to work again.
Make sure you consider multiple term insurance options before you choose one for yourself. Visit the online portals of different term insurance providers, go through the features and benefits they offer with different term insurance plans, and then shortlist a few based on your financial needs and budget.
You can also contact the aggregators like policybazaar.ae to find the best term insurance plans.