If you are the primary income provider for your family, their financial security depends on you. That includes planning for a future where you may no longer be able to provide for them.
This is why life insurance is so important.
Life insurance helps protect your family from financial hardship if something happens to you. It can replace lost income and help cover ongoing expenses such as housing, education, and daily living costs.
Choosing the right policy, however, can feel overwhelming. There are many providers and policy options available, especially in the UAE.
If you are planning to buy new life insurance or upgrade your existing coverage in the UAE, it’s important to avoid common mistakes. In this guide, we’ll walk you through what to watch out for so you can make a confident and informed decision.
Why Age Shouldn’t Stop You from Buying Life Insurance
"I'm only 28, I don't need life insurance yet."
If you've thought this, you're not alone, and you're also wrong.
Life insurance premiums are based on your age and health. Buy at 28 when you're young and healthy, and you lock in cheap rates. Wait until you're 45 with high blood pressure and a few extra kilos, then those premiums skyrocket.
Plus, if you go with a permanent policy early, you're building cash value for decades, which is the money you can borrow against or use later. So, start young, and that time works massively in your favor.
Even if you don't have kids yet, you might have parents or siblings who depend on you financially. If something happens to you, who covers their expenses? Life insurance replaces your income when they need it most. Being young doesn't mean you're invincible; it just means you're cheaper to insure.
How to Avoid Selecting the Wrong Life Insurance Plan
Not all life insurance is the same, and buying the wrong type is one of the costliest mistakes you can make.
Read our article on life insurance types in UAE
Term insurance covers you for a set period like 20 or 30 years. If you die during that time, your beneficiaries get paid. If you don't, the policy expires. It's simple, cheap, and perfect if you just need coverage while you're paying off a mortgage or raising kids.
Permanent insurance (whole life, universal life) covers you for life and builds cash value you can tap into later. It costs more, but it's an investment as much as it is insurance.
So which do you need?
If you've got solid savings, low debt, and just want to cover specific obligations like a home loan, term is probably your best bet.
If you want coverage that lasts forever, builds wealth over time, and you're okay paying higher premiums for that dual benefit, go permanent.
Don't let a salesperson upsell you into permanent coverage when term would do. And don't cheap out on term when your family actually needs lifelong protection. Understand the difference, then choose what fits your goals, not theirs.
Comparing Life Insurance Quotes Before You Buy
Term insurance is affordable. But most people see a policy online that's 25% cheaper than others and immediately click "buy" without reading what's actually included.
That bargain-basement policy excludes critical illness riders, disability benefits, or flexible payout options. It might have stricter exclusions or worse customer service. Sure, it's cheap, but will it actually cover what your family needs when the time comes?
Price matters, but it's not the only thing that matters. Compare rates across multiple insurers, but also compare what you're getting for that rate. Look at coverage limits, exclusions, riders, claim settlement ratios, and customer reviews.
The cheapest policy based on your age and desired payout might save you money now, but cost your family dearly later.
Why Price Alone Shouldn’t Drive Your Life Insurance Decision
Choosing the cheapest life insurance policy simply because it “fits your budget” can be risky.
A low premium often means lower coverage. If the payout is not enough to support your dependents, they may face financial difficulties later.
Here’s the key point: if the coverage amount is insufficient, the issue is not the insurance itself — it’s the allocation of your budget. Life insurance is a financial safety net. It should be treated as a priority expense, not an optional one.
Before you commit to any policy:
Review the coverage amount carefully.
Check exclusions and limitations.
Understand the policy terms and conditions.
If anything is unclear, speak with a qualified financial advisor. Ask questions until you fully understand:
What the policy covers
What it does not cover
How and when benefits are paid
Only sign once you are confident that the policy truly protects your family.
The biggest mistake is purchasing coverage that looks affordable today but fails to provide real protection when it matters most.