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UAE: Demand for term life insurance for youth growing amid health concerns

The main goal of life insurance is to offer financial security to the policyholder’s family

Demand for term insurance is growing in the UAE due to increased awareness in the post-Covid-19 period as well as a growing population of expatriate residents.

Industry insiders say that UAE families concerned about health issues like heart attacks among the youth are also opting for term insurance for younger family members for financial safety.

“Yes, the demand for term insurance in the UAE is on the rise due to increased awareness of financial planning, the impact of the Covid-19 pandemic, and a growing expatriate population seeking financial security for their families,” said Avinash Babur, CEO of Insurancemarket.ae.

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Atul Kathuria, business head for term/life insurance and investments, Policybazaar.ae, echoed Babur’s views, saying demand is primarily driven by the increasing number of people relocating here, coupled with growing awareness of the benefits of term insurance.

Term life insurance or term insurance provides financial protection for a set period at relatively low premium rates. In case of the death of the person insured during the term of the policy, the amount is paid out to the nominee. The main goal of life insurance is to offer financial security to the policyholder’s family.

Term insurance premiums in the UAE vary based on factors like age, health status, coverage amount, and policy duration. However, if the individual has a pre-existing condition, such as diabetes, the premium could almost be doubled. This underscores the importance of purchasing term insurance at an early age, as premiums are locked, offering long-term financial security.

It is estimated that the UAE's life insurance market is expected to reach a gross written premium of approximately $3.87 billion (Dh14.2 billion) in 2024.

Term insurance for youth

While term insurance is primarily purchased by individuals to protect their families, Atul Kathuria said there has been a noticeable trend of younger people securing coverage early in life.

“This is largely due to shifting lifestyles and the increasing prevalence of serious health conditions, such as heart attacks, among younger adults. Many individuals are now opting for term insurance at a younger age to ensure financial protection for their loved ones in case of unforeseen circumstances,” he said.

Doctors and healthcare professionals say residents’ sedentary lifestyles, unhealthy eating, stress and obesity are the primary reasons for cardiac problems among young people in the UAE.

Avinash Baur added that there is a growing awareness among UAE families about the importance of securing financial protection for younger members, especially in light of health concerns such as the increasing incidence of heart attacks among the youth.

“This awareness is leading to a gradual increase in term insurance uptake for younger family members, although comprehensive data on this specific trend is still emerging,” he added.

Demand from NRIs rising

According to a study conducted by Policybazaar, demand for term insurance is increasing among non-resident Indians (NRIs) in the UAE as well.

Tarun Mathur, co-founder and CBO, Policybazaar.com, said the pandemic has been a major trigger for many customers across the world when it comes to insurance, especially those who have families back in India, as NRIs account for 12 per cent of all term insurance customers over the past two years.

“The competitive premiums that India offers continue to draw NRIs from around the world for their financial protection needs. Buyers in high-income countries – such as the UAE, US, and UK – tend to opt for larger sum assured to match the higher cost of living and financial responsibilities,” said Mathur.

The number of Indians living in the UAE and other Gulf Cooperation Council (GCC) countries has crossed nine million this year.

In terms of the sum assured by region, NRIs in GCC average Rs18 million compared to Rs20 million in Australia, New Zealand and the UK, and Rs25 million in the US.

“Quite interestingly, the UAE leads the NRI market when it comes to term insurance with a heartening growth in female policyholders. The female customer base buying term plans has jumped from four per cent to 11 per cent between 2023 and 2025. Most policyholders fall between the age group of 31 to 40, which is the age when professionals tend to juggle their growing careers as well as additional family responsibilities,” added Mathur.

Health insurance

In addition, the Policybazaar study found that health insurance is also gaining significant momentum with a 100 per cent year-on-year growth in the number of NRI health policyholders in 2025.

“This surge can be attributed to a combination of factors, including India’s improved healthcare infrastructure and competitive premiums compared to global counterparts. Gulf countries, led by the UAE, account for 60 per cent of NRI health insurance customers, with the US, UK, and Australia also emerging as key markets. While 71 per cent of NRI policyholders fall between the ages of 28-45, 30 per cent of insured individuals are aged 50 and above. This points towards NRIs buying health insurance for elderly parents and managing their healthcare needs,” said Mathur.

A notable trend in NRI health insurance is the increasing interest in comprehensive coverage options such as Outpatient Department (OPD) benefits, which have grown from five per cent in 2021 to 25 per cent in 2024.

OPD coverage provides NRIs with affordable access to preventive care and chronic disease management, making it an attractive add-on to traditional health policies. Even as pre-existing diseases like diabetes continue to impact people across age groups and geographies, 40 per cent of NRI health insurance buyers are opting for immediate coverage of pre-existing conditions.

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