All about
life insurance

What is life insurance?

Life insurance is a way for you to leave money for people you care about in the event of your death. It's an agreement between you and a life insurance company where you pay a premium, and in turn they provide you with insurance coverage based on your needs.

Maybe you need to make sure your spouse will be able to pay the mortgage or the day to-day bills if you’re no longer around. No matter what your needs are, the right kind of life insurance should be simple and affordable.

There are two main types of life insurance, term life and whole of life insurance. If you’re looking for simple life insurance to protect your family without an investment option, stick with term life insurance. If you’re looking to receive a cash value and want a lifetime solution, whole of life will suit you.

Here a few importance things for you to consider - how much do you need? how much does it cost? and do you need it? Read on to make an informed decision

There are many online resources available out there to help you determine how much life insurance you need. A safe cover amount usually works out to at least 10-15 times your annual salary; a close assessment can ensure you and your family are well protected should the worst happen.

Follow these three steps to consider your needs in more detail.

Step 1. Define the goals you need to protect

Write down which and how many life goals your family will need to achieve on their own if you’re no longer around. Our customers usually share these goals:

paying off bank, car or home loans
maintaining daily expenses such as food and rent
funding children’s education
having enough in retirement
being able to afford travel or other leisure pursuits

Step 2. Quantify your goals

Understand how much each goal would cost as well as the time frame. Here are a couple of examples:

Goal	Amount	Time limit
Pay off mortgage	AED 1,500,000	over 15 years
Pay for expenses	AED 50,000	every year for 15 years until you retire

Step 3. Work out how much you can afford

Consider this cost as part of your monthly budget. When it comes to life insurance, something is always better than nothing.

How much does it cost?

The cost of life insurance is calculated based on your mortality risk, or how likely you are to die in a given period.

The main risk factors include:

Age: Simply put, the younger you are, the lower the risk and the cheaper your premiums are likely to be.
Gender: With women having longer life expectancy than men on average, life insurance would cost them less.
Health and lifestyle: The better your overall health and family health history, the lower your premiums are likely to be. If you participate in any high-risk hobbies or have a dangerous occupation, it can impact your premiums as well.
Coverage and term: The higher the coverage, the higher the cost. Longer term life insurance also costs more as we commit to maintaining the same price over a sustained period of time, during which your mortality risk rises.

To get an idea, take a look at this table:

Criterion	Futura	Term Assurance	Critical Illness Protection
Best for	Lifetime + investment	Mortgage, kids education	Serious illness costs
Term length	Lifetime	5-35 years.	5-35 years
Monthly cost	AED 400+	AED 50+	AED 100+
CI rider	Optional	Optional	Core benefit

Do I need it?

To find out if you need life insurance, ask yourself if your absence would cause anyone financial stress. If the answer is yes, you need life insurance. Let's take a closer look at why that might be.

You’re the main contributor of your family's income

Life insurance can replace your income if you die during your policy term. If you support children, a spouse, parents or other family members, and the loss of your income would affect how they pay for essentials such as food, childcare or rent, you need life insurance.

You have children

Anyone with children should consider getting life insurance, whether they earn a salary or not. Even if you don't have lost income to replace, you might be providing support that your children would have to cover in your absence, such as university fees.

You run a business

As a business owner, you might’ve taken a business loan using personal assets such as your home as collateral. Life insurance can help settle such debts that your family might otherwise have to repay in your absence. If you’re a co-owner, a life insurance policy with your business partner as the beneficiary can help him or her repay your business shares, so that your family is not left without income from the business proceeds.

Your life insurance through work isn't enough

If any of the above scenarios apply to you, the death benefit included in your policy at work probably won't be enough to adequately cover your dependents’ needs. Group life insurance schemes through an employer usually equates to 1-2 times your annual salary, as opposed to 10-15 times, as recommended by financial experts.

What if none of the above apply?

If none of this applies to you, then you may not need life insurance right now. However, make sure to reexamine your situation as major life changes happen, including when you take on debt. Also, keep in mind that buying life insurance when you're younger and healthy can be cheaper.

Which one is it for me?

Here is a quick comparison of our life insurance solutions - take a look, this will help you make the right decision with your financial advisor.

Criterion	Futura	Term Assurance	Critical Illness Protection
Type (life or term)	Whole of life, unit linked life insurance with investment component.	Term life insurance (pure protection).	Term critical illness insurance (pays on serious illness).
Key features	Lifetime cover, unit linked savings/investment. premium and benefit flexibility. Option to pay premiums over short time frame (7-50 years) life cover and multiple optional riders (critical illness, permanent total disability, waiver of premium on disability, accidental death, dismemberment, family income, hospitalisation).	Fixed term cover. Fixed premium and benefits.Lump sum payout on death during term (Life cover), optional critical illness, permanent total disability, waiver of premium on disability. Policy terms are from 5 to 35 years.	Fixed term cover. Fixed premium and benefits. Lump sum payout if diagnosed with a covered serious illness. Policy terms are from 5 to 35 years. Comprehensive CI list (34 illnesses including cancer, heart attack, organ failure, stroke).
Who it is best for	People wanting long term/lifetime family protection plus savings or wealth planning in one policy; suitable if you want flexibility to add/remove benefits over time and can commit to higher, longer term premiums. People who want a cash value with their protection product	People needing life cover for a fixed period at fixed cost (e.g., income replacement, mortgage protection, kids’ education) without an investment element.	People mainly worried about serious illness costs and income disruption, who may already have life cover elsewhere or want to add CI to existing plans.
Policy term	Designed for lifetime cover; you select a benefit term and funding period but protection can effectively run for your whole life if adequately funded.	Fixed term (e.g. 5–35 years, with UAE comparison sources quoting up to 35 years).	Fixed term, typically 5–35 years depending on options chosen.
Life cover	Core benefit: lump sum on death of the life insured; also pays on terminal illness (diagnosed with <12 months to live, subject to timing rules).	Core benefit: lump sum on death during policy term; many variants also pay on terminal illness.	Not primary; main benefit is CI payout. USD 5,000 funeral coverage benefit included for free.
Critical illness cover available?	Yes - Optional cover. Available as Comprehensive or Cancer only cover. Lump sum payout if diagnosed with a covered serious illness; comprehensive CI list (36 illnesses such as cancer, heart attack, organ failure, stroke).	Yes - Optional cover. Lump sum payout if diagnosed with a covered serious illness; choice of cover term; comprehensive CI list (34 illnesses such as cancer, heart attack, organ failure, stroke).	Primary cover. Lump sum payout if diagnosed with a covered serious illness; choice of cover term; comprehensive CI list (34 illnesses such as cancer, heart attack, organ failure, stroke). Also available on a Cancer only basis.
Other common riders / benefits	Permanent and total disability, waiver of premium, accidental death, dismemberment, family income benefit, hospitalisation benefit, funeral/early claim advances often available.	Critical illness, total permanent disability, waiver of premium.	Options include different CI levels (e.g., “comprehensive” vs more limited), child CI/cancer and funeral cover for children; may be combined with life policies for broader protection.
Premium structure	Flexible premiums (you choose level and can adjust), linked to investment funds; need sufficient funding to keep cover in force; minimum monthly premiums apply (e.g., around USD 150 in some versions).	Level for the selected term; generally cheaper per unit of cover than Futura because there is no investment component.	Premiums depend on age, term, and sum assured; generally focused on CI risk only.
Flexibility	High: you can add/remove optional benefits, increase/decrease cover, and adjust premiums (subject to product rules and adequacy of fund values).	Low: you choose term and cover amount at the start.	Low: you choose term and level of CI cover at the start.