Life is uncertain. You might be working in a plush office, drawing a fat pay check and have a huge mortgage to support your increasing financial needs and lavish lifestyle. But what if an accident tomorrow leaves you incapacitated for life or worse kills you, leaving your family in doldrums. A life insurance policy is, therefore, a must if you care for your family’s needs in the event of your death. A life cover will provide a lump sum to your family in the case of your death. In addition to the life cover, a life insurance policy may offer several other attractive features such as waiver of premium on disability, critical illness coverage and so forth. In order to choose the most suitable life insurance policy, you should do market research before zeroing in on several features such as the contribution period, currency, and permanent total disability and accident death benefits among many others.
There are different kinds of life insurance policies in the UAE market. Though the final aim of all the life insurance policies is to provide the family of the policyholder if something should happen to them, each kind of insurance policy has its own unique set of features and benefits. Given below are some of the common types of life insurance policies provided by banks and financial institutions in UAE.
The United Arab Emirates (UAE) is the largest insurance market in the GCC. However, the non-life segment accounts for the bulk of the premium. Nevertheless, in the recent past, growth of the life insurance segment has been significantly higher compared to the non-life segment.
The insurance sector in the UAE is, by and large, dominated by publicly listed companies with majority government-holdings. Major participants in the life insurance segment in the UAE include companies which have to be registered as public joint stock companies and listed on the Dubai Financial Market. Other participants include government-owned unlisted entities apart from private and foreign firms. There are over 60 insurance companies currently operating in the UAE.
Distribution in the insurance segment in the UAE is largely managed by brokers and agents. Bancassurance, although gaining increasing popularity, is still underdeveloped in the UAE owing to legal uncertainties. Bancassurance has, however, recently witnessed robust growth in Dubai with several banks entering into contracts with top insurance companies to provide a wide range of products.