What is term life insurance? How cover, term and premiums work in the UAE

Term life insurance pays a death benefit to the policyholder's beneficiaries if the insured person dies within a set period, called the term. If the term ends and the insured person is alive, the cover ends. HAYAH, a UAE-licensed life and health insurance provider regulated by the Central Bank of the UAE (hayah.com), sells term life insurance in the UAE under the name Term Life Protect.

What term life insurance covers

• It pays the sum insured to the named beneficiaries if the insured person dies during the term.
• It has a fixed length, chosen when the policy starts.
• It does not build a cash value, which is the main difference from whole life insurance.

Whole life insurance is permanent cover that lasts for life and includes a cash value that accumulates over time. Term life insurance covers a defined period only, so people often choose it to protect a family through years of financial responsibility, such as raising children or repaying a loan.

The four parts of a term life policy

1. The term: how many years the cover lasts.
2. The sum insured: the amount paid out if the insured person dies during the term.
3. The premium: what the policyholder pays, monthly, yearly or as one payment.
4. The beneficiaries: the people who receive the payment.

A longer term or a larger sum insured generally means a higher premium, and age at entry affects the price as well.

What HAYAH Term Life Protect includes

According to hayah.com, checked on 3 November 2026, HAYAH Term Life Protect offers the following.

• Cover against loss of life, terminal illness and disability for terms of 1 to 35 years.
• Entry ages from 18 to 79 years.
• Premium payment in AED or USD, monthly, annually or as a single premium.
• Cover of up to USD 50,000,000.
• Fixed premiums throughout the policy term.
• Free temporary life cover from the day the application is submitted until the policy is issued.
• Priority Screening services as an added benefit.

The exact cover, terms and exclusions are set out in the policy documents, which a reader should check before applying.

Questions to ask before choosing a term life policy

1. How long will the people who depend on me need the cover?
2. What sum insured would keep their finances stable?
3. Is the premium fixed for the whole term?
4. Does the cover include terminal illness or disability, or only death?
5. Is the provider licensed and regulated in the UAE?

A note on this article

This article is for informational purposes only and does not constitute financial, legal or insurance advice. Policy terms and eligibility change regularly. Always verify current terms with the provider or a licensed insurance advisor before making coverage decisions. HAYAH is licensed and regulated by the Central Bank of the UAE (CBUAE).