Policybazaar.ae, Alliance Insurance launch UAE life cover with a full premium refund option
The Smart Return Term Plan combines life cover with a one-time exit option for eligible policyholders, allowing them to recover their base premiums under specified conditions
21 October, 2026
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Policybazaar.ae and Alliance Insurance have launched a term life insurance product in the UAE that offers policyholders a way to recover 100 per cent of their base premiums through a one-time exit option, adding a refund feature to conventional term protection.
The Smart Return Term Plan provides a lump-sum death benefit to beneficiaries if the life assured dies during the policy term. Eligible policyholders can also choose to leave the plan at a designated point before maturity and receive a refund of the base premiums paid.
The launch addresses a common concern associated with term insurance: policyholders generally pay premiums for financial protection but do not receive those payments back if the policy ends without a claim. The new product gives eligible customers the option to recover their base premiums while retaining the choice to continue their cover.
Smart exit option comes with conditions
The plan’s main differentiator is its Smart Exit feature, available to policyholders who select a term of at least 30 years. The option can be exercised once during a one-year window that opens six years before the policy’s scheduled end date.
Customers who exercise the option receive a refund equivalent to 100 per cent of the base premiums paid. The refund provision applies to base premiums, and the product’s terms and conditions will determine how the option operates in individual cases.
For example, a customer who purchases a 30-year policy at age 30 could use the exit option during the designated window at age 54. At that stage, the policyholder could assess whether life cover remains a priority or whether recovering the premiums better suits their financial circumstances.
Customers who do not exercise the option retain their life cover until the end of the policy term, subject to the policy conditions. The feature therefore offers a choice between continuing protection and taking the eligible premium refund at the specified point.
Insurers target concerns over term cover
Neeraj Gupta, CEO of Policybazaar.ae, said the perceived loss of premiums when a term policy ends without a claim can discourage people from purchasing cover.
“Term insurance is the most important financial decision a breadwinner can make, and the one most often postponed. In the UAE, many families rely on one income for school fees, rent and home loans, yet term cover remains badly underpenetrated. The barrier is not awareness. It is the belief that decades of premiums vanish. Until now, no term plan in this market offered a way to get that money back. The Smart Return Term Plan changes the equation: full protection when it matters most, and a clear path to recover every dollar of base premium. With Alliance Insurance, we are setting a new standard for life cover in the UAE.”
Gupta said the partnership aims to provide families with life protection while addressing concerns about the treatment of premiums when no claim is made.
Rami Al Mughrabi, CEO of Alliance Insurance, said the product combines term insurance with additional flexibility for customers.
“For more than five decades, Alliance Insurance has focused on building products that fit the real lives of people in the UAE. The Smart Return Term Plan reflects that. It keeps the simplicity and affordability of term insurance, and adds the flexibility people have been asking for. Our partnership with Policybazaar.ae lets us put this plan in front of customers in a way that is transparent, easy to compare and easy to buy. We see it as an important step in widening access to life protection across the country.”
Eligibility, premiums and additional benefits
The plan is available to individuals aged 20 to 65, with coverage extending up to age 85. Policy terms start at five years, although the Smart Exit feature is limited to policies with terms of 30 years or longer.
Premiums are payable in US dollars throughout the policy term. Customers can choose monthly, quarterly, semi-annual or annual payments, and the product carries no policy fee, according to the companies.
The death benefit is paid as a lump sum equal to the policy’s Sum Assured. The plan also includes built-in cover for Passive War and Passive Terrorism, capped at $1m per life.
Customers who select a policy term of less than 30 years and a Sum Assured of at least $500,000 are eligible for a 20 per cent premium discount. These shorter-term policies do not qualify for the Smart Exit premium-refund option.
Product available through Policybazaar.ae
The Smart Return Term Plan is available through Policybazaar.ae, where prospective customers can compare options, obtain quotes and consult licensed advisers.
The product’s appeal will depend on how customers assess the cost of coverage against the potential premium refund, the length of protection required and the conditions governing the exit option. For policyholders considering long-term cover, the designated exit window provides a decision point before the policy’s scheduled end date, while those who retain their policies continue to receive protection under the applicable terms.

















