Life insurance in the UAE

If you have a spouse, partner or dependents, then there's a good chance you'll need life insurance.

Term Life Assurance provides a lump sum payment for your loved ones, in the event of your death. The amount of money they receive depends on the type of cover you choose to invest in, so it is critical to establish the financial needs of your family to help you calculate your policy.

Term Assurance is so called because you are buying cover for a fixed period, such as 15 or 25 years. Should you die within the time period of your policy, your chosen beneficiaries will receive a lump sum. However, there is no lump sum payable if you were to survive to the end of your policy.

Is the payout guaranteed?

There are some instances where life insurance will not pay out, so it is important to read and understand your insurance contract before you sign on the dotted line.

Situations whereby beneficiaries will lose their right to insurance cover include suicide, smoking or alcohol abuse, dangerous activities, illegal activities, acts of war and fraud.

If you are a smoker or consider yourself a heavy drinker, speak to one of our advisers. Life insurance policies may still be an option, however the premium is likely to be much higher. 

Do I really need it?

If you have a partner, spouse, children or family who depend on you, then you require life insurance. A policy will help take care of mortgage payments and living costs after your death.

Relying on the state to take care of your family in the event of your death is unwise – the money the UK government provide is possibly much lower than you realise.

Common reasons expats don't buy life insurance in the UAE

I’m young and single. I don’t need insurance.

Think about whether it is important for you to provide support for your aging parents, or perhaps a sibling with special needs. Do you have significant debts that may cause problems for loved ones?

Being young, single and in peak health with a good family history pays dividends for your insurability. 

I’m a stay-at-home parent with no salary.

Just because you don’t bring a salary to the table does not mean you don’t make a vital financial contribution towards the family. The duties of being a child-carer, chauffeur, cook and housekeeper add up to a significant value. Insuring your family’s caregiver may help to preserve your quality-of-life at home.     

I have life insurance with my employer.

Some employers grant life insurance equal to two or more years’ annual salary. Unless you are single with no dependents, it is important to ask yourself if this is enough to care for your family’s future.

I’ll be gone. I won’t care.

The reason you need to insure your life is to protect your legacy, and to make sure your life’s work has not been in vain. Ask yourself if your family can maintain their lifestyle without you? Can they pay the mortgage without you? Can your children attend college without you? 

Buy life insurance online

As it stands, there is no straightforward way to buy life insurance online in Dubai or in the UAE. Whatever your requirements, whether you would like advice or you simply want to transact hassle-free, we're happy to help.

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