What is Life Insurance?

Life insurance is the most popular protection plan among individuals worldwide. To avail this protection, there is a contract between an insurance policyholder and an insurance company, where the insurer agrees to pay a sum of money in exchange for a premium, upon the death of an insured person or after a set period. The total amount is paid to the nominee if the sudden death of the policyholder occurs. 

Life Insurance in the UAE

A life insurance policy can help you safeguard your family's future. If the sudden death of the policyholder occurs, the family can get the total amount as financial protection.

With people getting more aware of the benefits of life insurance, it is getting more popular worldwide. The majority of people in the UAE don't have a life insurance policy because they find it expensive and some are not aware of it. With different insurance companies having life insurance policies as per the customer's needs and income, you can select the best suited policy for you and your family's protection.

Benefits of Life Insurance Policy

Life insurance policy comes with a lot of benefits, some of the primary ones are mentioned below:

  1. Safeguards the family members -On the demise of the insured the family gets financial protection from the insurance company based on the policy amount.
  2. Assured returns - The insurance company has to pay the sum assured amount to the family of the insured/ nominee after the demise of the insured.
  3. Loan facility - The individual can also opt for a loan with some specific life insurance policy.
  4. Future savings - Some of the policies provide a bonus on maturity which helps in saving for the future.
  5. Coverage for Health Expenses: Some life insurance policies cover critical illness treatment and hospitalization expenses.
  6. Variety of Life insurance Plans: Life insurance companies in UAE offer a variety of insurance plans depending on the individual's needs.

How does the life insurance policy work in UAE?

Below are the steps followed for life insurance:

  1. The insured agrees to pay a monthly premium for the coverage.
  2. An insurance provider ensures the financial stability of the policyholder’s family members in case of the untimely demise of the policyholder during the policy period by paying the sum assured to the nominee.
  3. If the insured survives till the maturity period, a maturity benefit will be provided to the policyholder itself. This maturity benefit also depends on the type of policy you apply for.

Steps to Buy Life Insurance in UAE

With the help of the below steps, you can buy the insurance plan easily.

  • Choose the right policy : With a lot of options available, it might be difficult to select the best plan. But with a little research online you can choose the best plan according to your budget and requirement.
  • Discover the coverage : For the safe and secure future of your dear ones, finding the highest coverage can be more beneficial. 
  • Examine your budget : When you analyze your budget it helps you to save for the future and also reduces your financial burden by helping to select the best suitable policy.
  • Get quotes for easy selection : For the best and easy selection of the life insurance policy, get more quotes online or through the offline medium.
  • Compare quotes and finalize the policy : Once you receive all the quotes, compare them based on the premium, tenure and so on. Then finalize the policy as per the budget and needs.

Who can apply for Life Insurance in UAE?

With more people getting aware of the benefits of life insurance policy, it has been a necessity now. All the residents in the UAE can apply for a life insurance policy if they meet the eligibility criteria as defined by the concerned insurance provider.

Documents needed for purchasing a life insurance policy

An individual needs to provide the following documents to buy a life insurance policy:

  1. Passport-sized photographs
  2. Emirates ID
  3. Passport with UAE residence Visa (for expats)
  4. Address Proof 

Note: The documents and process vary from one insurance company to another. You can check online before applying for the policy.

Eligibility Requirements for Buying a Life Insurance Policy

Some of the basic requirements for availing a Life insurance policy in UAE are:

  1. The applicant must be between 18 to 75 years of age for getting a life insurance policy.
  2. The applicant must have a consistent and reliable source of income.
  3. The applicant must be a resident of the UAE and should have all the needed documents. 

Note: The eligibility criteria may vary from one insurance company to another.  

FAQs

Life insurance is a contract between an insurance policyholder and an insurance company, where the insurer agrees to pay a sum of money in exchange for a premium, upon the death of an insured person or after a set period. The total amount is paid to the nominee if the sudden death of the policyholder occurs.

Sum assured is the guaranteed amount the nominee will receive in case of the sudden demise of the insured.

Insurance policies available in UAE are term life, whole life, endowment plan, money back plan, pension plan, and unit-linked insurance plans.

With a wide range of life insurance policies available as per the individual's needs and budget, it is recommended to compare the policies and choose the best suitable option.