The growth is mainly portended to be in the non-life insurance sectors, as many of the products under the category are compulsory by law. The report also stated that the United Arab Emirates is the GCC's largest insurance market. However, there is substantial untapped potential for further growth, with 64% of UAE residents found to be bereft of a life protection plan by a survey conducted by Zurich International Life; reported Gulf News in March 2014. Yet, it is not for the dearth of options that the life insurance sector has not picked up in the region. There are several types of plans available in the UAE to provide life cover to those who seek it.
Primary Types of Life Insurance Plans Available in the UAE
- Term: This is a pure cover plan, where there is no investment component, since the premiums paid go entirely towards the sum insured. Therefore, it provides high value cover at very affordable rates.
- Whole Life: Typically, this plan offers protection up to the age of 95 years. It is a Unit Linked or Interest Sensitive policy, wherein the investment serves to sustain the cover for the lifetime of the insured.
- Secure Life: This is the most affordable type of life cover available in the UAE, initiated to attract people from every strata to invest in it. It is available on monthly premiums as low as AED 20 and also comes with a protection plan for a certain period if the insured is unable to pay the premium on account of involuntary loss of employment.
- Personal Accident Plans: The uniqueness of this plan lies in the fact that not only does it offer protection in case of accidents, it also does so in case of natural calamities that result in permanent physical impairment or death. Moreover, it is applicable no matter where in the world the incident takes place.
- Critical Illness Plan: This is an essential cover to invest in as a long term critical illness is the cause of not only massive emotional turmoil, but also one of the most difficult financial crises a family might have to face. There are plans that offer protection for over 37 major illnesses and render the family financially capable during their time of need.