Individual Clients

Term Insurance in the UAE

Fixed-period life cover that pays your family a lump sum if you die during the term. For most UAE residents it is the most affordable way to protect income, a mortgage, and school fees.

Term insurance in the UAE is the simplest way to protect the people who depend on your income. You choose an amount of cover and a fixed period, often 10 to 30 years. If you die within that period, the insurer pays the sum assured to your beneficiaries. If you outlive the term, the policy ends with no payout and no cash value. That trade-off is why term life insurance costs a fraction of whole-of-life or savings-linked plans: it does one job, for the years your family needs it most.

ONE Insurance Brokers advises UAE residents on term cover from several international and regional insurers. We have no house product to sell, so we start with three questions: how much protection, for how long, and in which currency. Only then do we compare the insurers whose terms fit.

Why term cover matters more for UAE residents

Most expatriates in the UAE have no state pension, no social security death benefit, and no welfare system to fall back on. End-of-service gratuity is a payment for years worked, not family protection, and employer group life cover usually ends the day the job does. Family residence visas are tied to the sponsor, so a death can put a household’s residency in question while rent, school fees, and loan repayments are still due.

Term insurance fills that gap with a lump sum your family controls. For many households it is what makes the rest of the plan survivable: the mortgage, the school place, or the move home.

Types of term insurance available in the UAE

  • Level term: the sum assured stays the same for the whole term. The usual choice for replacing income.
  • Decreasing term: cover reduces over time, normally in line with a repayment mortgage or loan, and costs less than level cover of the same starting amount.
  • Increasing term: cover rises each year to keep pace with inflation or growing commitments, at a higher premium.
  • Convertible term: lets you switch to a permanent policy later without new medical evidence, within the insurer’s rules.
  • Family income benefit: pays a monthly income for the rest of the term instead of a single lump sum, which some families find easier to manage.
  • Takaful term cover: a Sharia-compliant alternative in which participants contribute to a shared fund instead of paying premiums to an insurer.

How much term cover do you need?

Start from what your family would actually have to pay without you, not from a round number. The needs-based method adds up the years of income your dependents would need, debts such as a mortgage, and future commitments like school and university fees, then subtracts existing cover and savings your family could reach. A household spending AED 20,000 a month that wants 15 years of support needs AED 3.6 million for income alone, before the mortgage is counted.

The coverage calculator on this site runs that method in your browser in under a minute and stores nothing. Use it as a starting point; an advisor will then test the assumptions with you.

What affects the premium

We do not publish prices because every premium is individually underwritten, but the same factors drive it at every insurer:

  • Age: the younger you are when you apply, the lower the premium for the whole term.
  • Health: build, medical history, and conditions such as diabetes or high blood pressure.
  • Smoking: cigarettes, vaping, and shisha are usually priced at smoker rates.
  • Cover: the sum assured and the length of the term.
  • Work and travel: offshore roles, aviation, and regular travel to high-risk regions.
  • Riders: each benefit added to the base cover.

Riders worth considering

  • Critical illness: pays a lump sum when you are diagnosed with a covered condition such as cancer, heart attack, or stroke. Definitions vary between insurers, so compare the wording.
  • Permanent total disability: pays if illness or injury stops you working for good.
  • Waiver of premium: keeps the policy in force if you cannot work and pay premiums.
  • Accidental death: adds a payout if death results from an accident.

Also read the wording on passive war and terrorism risk. It matters for residents of the region, and not every insurer includes it.

If you leave the UAE

Expatriate life rarely stays in one country, so check three things before you buy. First, the residency clause: many internationally issued term plans stay in force if you relocate, while some locally issued plans are designed for UAE residents only. Second, the currency: cover in US dollars or dirhams (the dirham is pegged to the dollar) holds its value for families whose future costs are in hard currency. Third, your beneficiaries: name them clearly and keep them current. If you are a non-Muslim resident, consider registering a will, for example with the DIFC Wills Service Centre or the Abu Dhabi Judicial Department, so default inheritance rules do not decide for you.

Term insurance and your mortgage

UAE lenders generally require life cover on a home loan. The bank’s own policy is convenient, but it usually covers only the outstanding balance and stops if you move the mortgage to another bank. Many lenders also accept an individual term policy assigned to them, which can give your family more control and can cover more than the debt. Ask your lender what it accepts before you choose.

How applying works

  1. Needs review: we agree the sum assured, term, currency, and riders with you.
  2. Insurer comparison: we compare suitable plans from several insurers on wording, exclusions, and claims handling, not on price alone.
  3. Application: you answer the health and lifestyle questions. Answer them fully, because non-disclosure is the most common reason claims are disputed.
  4. Underwriting: larger sums assured, older ages, or a medical history can mean a medical exam or doctor’s reports, usually arranged by the insurer.
  5. Policy issue: you receive the policy documents. UAE-issued policies include a free-look period after delivery during which you can cancel; your policy states its length.
  6. Review: revisit the cover after a birth, a new mortgage, a pay change, or a move.

Why use an advisor for term insurance

Comparison sites rank plans largely by price. An advisor looks at what your family will rely on at claim time: definitions, exclusions, portability, currency, and how the insurer handles claims. Our consultation is complimentary, and you are under no obligation to proceed.

Who it is for

UAE residents and expatriates with dependents, a mortgage, or other debts; parents covering school and university fees; dual-income couples where either income matters; anyone whose employer life cover would end with the job.

When to review

Taking out or refinancing a mortgage; the birth of a child; a new job or the end of employer cover; moving to or from the UAE; a policy bought years ago that no longer matches your income or debts.

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Frequently asked questions

Can expats buy term insurance in the UAE?

Yes. Residents with a valid UAE residence visa can usually apply whatever their nationality. Acceptance and terms depend on your age, health, occupation, and each insurer’s rules.

What happens to my term insurance if I leave the UAE?

It depends on the policy’s residency clause. Many internationally issued plans continue wherever you live as long as premiums are paid; some locally issued plans are designed for UAE residents only. Check this before you buy, not when you move.

Do I need a medical test for term insurance?

Not always. Smaller sums assured are often accepted on health questions alone. Larger amounts, older ages, or a medical history usually mean an exam or doctor’s reports, normally arranged by the insurer.

Is term insurance the same as life insurance?

Term insurance is one type of life insurance. It covers a fixed period and has no cash value. Whole-of-life and savings-linked policies last longer or build value, and cost considerably more for the same cover.

Do I get my premiums back if I outlive the term?

Not with standard term cover; the policy simply ends. Some insurers offer return-of-premium versions at a noticeably higher cost. We can compare both so you can see what the refund feature actually costs.

How long should my term be?

Long enough to cover the years your family would depend on your income: usually until your youngest child is financially independent or your mortgage is repaid, whichever is later.

Does term insurance cover critical illness?

Not by default. Critical illness cover is usually added as a rider or bought as a separate policy, and the list of covered conditions varies between insurers.

Can I use my own term policy for my UAE mortgage?

Often, yes. Many UAE lenders accept an individual term policy assigned to them instead of the bank’s own cover. Confirm with your lender which insurers and assignment terms it accepts.

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