Life Insurance in UAE – 2025 Guide for Expats and Locals

27 June 2025

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Introduction

Life insurance in the United Arab Emirates is no longer just a luxury or optional financial product—it’s becoming an essential component of long-term planning. Whether you're an Emirati national or an expat living in Dubai, Abu Dhabi, or Sharjah, a life insurance policy can offer peace of mind, financial protection for your family, and even investment opportunities.

In this 2025 guide, we explore everything you need to know about life insurance in the UAE, including policy types, benefits, top providers, prices, and how to choose the right plan for your needs.

What is Life Insurance?

Life insurance is a contract between an individual and an insurance provider, where the insurer pays a lump sum (death benefit) to designated beneficiaries if the policyholder dies during the term of the policy.

It serves two main purposes:

Protection: Financial support for family in the event of death.
Investment: Some policies include a savings or investment component.

Who Needs Life Insurance in the UAE?

✅ Expats

To protect family members who rely on your income
To repatriate remains and cover funeral costs
To replace income for spouse and children

✅ Emiratis

To supplement government benefits
To cover debts (loans, mortgages)
To provide inheritance and estate liquidity

Types of Life Insurance in UAE

1. Term Life Insurance

Coverage for a set period (e.g. 10, 20, or 30 years)
Pays out only if death occurs during the term
Cheapest option, ideal for income protection

2. Whole Life Insurance

Lifelong coverage with guaranteed death benefit
Builds cash value over time
Premiums are higher but fixed

3. Universal Life Insurance

Flexible coverage and premium payments
Offers investment features
Suitable for high-income individuals or business owners

4. Group Life Insurance

Offered by employers as part of benefits
Usually limited in coverage (1-3x annual salary)
Not a substitute for personal life insurance

Benefits of Life Insurance in the UAE

✅ Income replacement for dependents
✅ Mortgage and loan protection
✅ Tax-free payout to beneficiaries
✅ Access to cash value (for whole/universal life)
✅ Funeral and repatriation expense coverage

Top Life Insurance Providers in the UAE (2025)

1. Zurich International

Wide range of term and investment-linked policies
Trusted among expats
Excellent claim service

2. MetLife UAE

Affordable term plans
Offers critical illness riders
Multilingual support including Arabic

3. Orient Insurance (Al-Futtaim Group)

Strong market presence in the GCC
Offers Sharia-compliant takaful products
Affordable group life insurance

4. Noor Takaful

Islamic life insurance provider
Competitive pricing for family protection
Flexible term and whole life options

5. Friends Provident International (FPI)

Tailored to high-net-worth individuals
Strong investment-linked life insurance plans
Offers education funding and wealth transfer solutions

Life Insurance Costs in UAE – 2025 Estimates

Age	Type of Policy	Sum Insured	Estimated Monthly Premium
30	Term (20 yrs)	AED 500,000	AED 100–150
40	Term (20 yrs)	AED 1M	AED 200–300
50	Whole Life	AED 500,000	AED 500–1,000
35	Investment-linked	AED 1M	AED 400–2,000+

Note: Rates vary based on health, smoking status, job risk, and residency visa.

How to Choose the Right Life Insurance Plan

✔️ Determine Your Goal

Do you want pure protection or investment?
How long do you need the coverage?

✔️ Calculate the Coverage Amount

Use this simple formula:
Annual Expenses × Number of Years + Debts + Future Education Costs

✔️ Compare Policies and Quotes

Use aggregators like Policybazaar UAE
Ask for multiple quotes with clear breakdowns

✔️ Understand Exclusions and Terms

Watch for:

Pre-existing conditions
Expat exclusions (for temporary residents)
Suicide clauses and waiting periods

How to Buy Life Insurance in UAE

Choose a licensed provider or broker
Undergo medical examination (for large policies)
Submit documents: Emirates ID, passport, visa, bank details
Choose riders (critical illness, disability, etc.)
Sign the proposal form and pay the premium

Frequently Asked Questions

Q: Can expats buy life insurance in UAE?
Yes, expats can buy life insurance, even without a long-term residency visa, from most international and local providers.

Q: Is life insurance payout taxable in UAE?
No. UAE does not levy personal income tax or inheritance tax on beneficiaries.

Q: Can I cancel my policy later?
Yes, but refunds depend on the policy type and duration.

Q: Is life insurance available in Arabic?
Most major insurers offer Arabic support for documents and customer service.

Conclusion

Life insurance in the UAE is a smart financial decision for anyone with dependents or long-term commitments. Whether you're an expat securing your family’s future or an Emirati planning wealth transfer, there’s a policy tailored to your goals. With evolving products and accessible platforms in 2025, it has never been easier to find affordable, Arabic-supported life insurance in the UAE.