Top 10 Factors That Affect Your Life Insurance Quote in the UAE |

Top 10 Factors That Affect Your Life Insurance Quote in the UAE

If you're in the market for life insurance in the UAE, here's what influences the premium you pay.

Posted on

23 February 2020

Last updated on 23 February 2020
Top 10 Factors That Affect Your Life Insurance Quote in the UAE

We detail what life insurance providers in the UAE look for when determining your policy rate

When seeking the best life insurance in the UAE, safe to say that we're always looking for the best possible value.

While comparing different policy providers and their quotes may be a great way to secure the best bang for your buck, there are other factors that influence your premium pricing.

Ever wondered why the costs of your current life insurance may be less or more than what others pay for, even if you purchased the same premium plan from the same insurer?

The difference between yours and their quote is based on multiple factors that determine the premium you pay for your life insurance policy. Insurance providers take into account your lifestyle, personal health, health history in your family, etc. to tailor your plan as per your needs, thus the rates vary.

With the help of experts at ExpatInsure, we take a look at the list of 10 factors that affect your how your UAE life insurance premium is calculated.

1. Your age

Your age is one of the first and foremost factors that providers consider when building your life insurance premium. Premium increases with age.

The younger you are, the fewer chances you might have in getting a life-threatening disease, incident, or death. So it is less likely that the insurance provider needs to make a large pay-out to your family or guardian.

2. Your gender

Your gender is another determinant of your life insurance pricing. It is a fact that women, on average, live around five years older than men. Women in the UAE will usually receive lower (but often longer) rates as insurers see less risk involved.

3. How much you smoke and drink

If smoking and drinking are not a part of your routine or lifestyle, you may pay a lesser life insurance premium compared to another who smokes and drinks.

Factors that affect life insurance premium UAE

This is due to the number of medical problems and illnesses linked to these habits.

4. Your health and medical history

Not surprisingly, your current health and medical history are taken into account when determining the price of your life insurance policy.

Insurers check for any pre-existing cases and serious conditions such as diabetes and high cholesterol, if you have had any operations or surgeries, and other health problems.

5. Your family's medical history

Your family's medical history is one of the factors that are of your control. UAE life insurance companies are interested to know if your family has a history of cancer, heart disease, stroke, or other serious ailments that may also pose a risk to you, as some diseases tend to be hereditary.

Having a family history of certain medical conditions may be seen by policy providers as a risk, which contributes to your premium rate.

6. Your job

Insurance providers usually charge a higher premium for those who are involved in risky professions.

If you are a UAE resident working in safer jobs such as a desk job, rather than industries where you are exposed to dangerous situations, machinery, and materials (construction workers, skydivers, etc.) or spend most of your time in the water, road, or air (seamen, transportation, pilots, etc.), then your insurance is more likely to be less costly.

7. Your personal hobbies

Are you an adrenaline junkie? Do you enjoy doing a lot of outdoor activities? If your hobbies include weekend excursions to the UAE mountains, skydiving, and other risky activities, this can make a difference in how much you pay for your life insurance.

Top 10 Factors That Affect Your Life Insurance Premium in the UAE

8. Your number of dependents

If you live with your family in the UAE and they depend on you, you will need higher coverage so that in the event of your death, the payout will be enough to meet their needs.

With higher coverage also comes a higher premium.

9. Your financial history

Your current financial history plays another role in determining your life premium. If you are not facing any financial problems in regards to income, debts, and banks, your risk level will be lower and chances are, your premium will be as well.

10. Your mode of payment

When you decide to purchase life insurance in the UAE, how and when you pay the rate can influence the policy costs. Payments made quarterly, twice a year, or even once a year might lower your overall premium rate.