Term Life insurance

Difference between Term Insurance and Whole of Life Insurance in Dubai

If you are considering buying life Insurance, the following table and the video I found on Youtube,  should help you decide between the Term Assurance and the Whole of Life Plans.

Sl. No

Whole of Life Insurance

Term Insurance


Aims to provide protection
for the entire lifetime.


Aims to provide protection
for a specified period of time (e.g., 5, 10, 15, 20, or 30 years) at an
affordable cost.



Accumulates a cash value -
can be withdrawn partially or fully.

Does not accumulate cash
value, premium paid is written off as expense.( Like Car Insurance)



Is very flexible, Cover
amount or premium can be increased or decreased, premium holidays allowed.


The amount and the benefits
are fixed throughout the life of the term assurance, no premium holidays are



Used for long term insurance
needs, like family protection or personal life cover.


Preferred by business owners
/ partners as Key Man Insurance to protect their business, as a retirement
age for partners or owners cannot be defined.


Used widely for estate
planning, and by investors having multiple property investments and mortgage
more than 20 years


Usually used to cover mortgages,
business loans, or time defined goals like children’s education or marriage,
for a term less than 20 years.


Highly recommended for people
who are and  want to supplement an
existing, whole of life plan

Critical Illness and
permanent total disability are the only
riders available on a term plan




Living benefits like
hospitalization cover, Long term care, Family Income Benefit, and
dismemberment cover can be added as riders, along with Critical illness cover
and Permanent Total disability.


Critical Illness Cover and Permanent
total Disability cover can be availed as riders on Term Assurance


The plan’s performance is
based on market linked investments, hence expert advice and regular review is
required to obtain the desired results from a whole of life plan.


Has no investment
options,  does not need a regular
review to maintain the term assurance plan


The best whole of life products
available in the market are; Zurich International Life’s Futura, Met Life Alico’s Future Protect, Royal London 360′s Life plan.

Zurich international Life’s International
Term  Assurance, Friends Provident
International’s International Protector Middle East are some examples


Salama has both Islamic and Conventional
Options for the whole of life cover called as Hyat Plus and Lifelong Plus,

Met Life Alico
has two variants of Tem Assurance, one with level term cover for normal
financial goals, and the decreasing term cover, used exclusively for mortgage
or business loan protection.


Ask Damodhar

To know more about the term or whole of life insurance, please call Damodhar Mata on +97150-2285405 or damodhar.mata@nexusadvice.com.

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