What Families in UAE Wish They Knew About Life Insurance

Most parents buy insurance thinking about school fees or grocery bills.
“If I die, I want my kids to go to Repton or Dubai College.”

But in the UAE, there is a legal hurdle that comes long before the school run. It is the issue of
Child Guardianship.

If you are an expat father (the sponsor) and you pass away, the legal custody of your children does not
automatically and instantly transfer to the mother as simply as it does in the West. And
having cash (Insurance) ready is the only grease that keeps the wheels of justice turning fast enough to
prevent foster care or travel bans.

1. The “Guardian” vs. “Custodian” Split

UAE Personal Status Law distinguishes between two roles:

The Conflict: If the Father dies, the role of “Guardian” (Financial Controller) does not
automatically merge with the Mother. The Court might appoint a paternal grandfather or uncle as Guardian to
oversee the inheritance money for the children.

Why Insurance Matters: If the Mother has a Life Insurance payout in her own name
(as beneficiary), she becomes financially independent. She doesn’t need to beg the Court-appointed Guardian
for money to buy milk. She holds the power.

2. The “Temporary Travel Ban”

While the court decides on guardianship (which can take months), they lock down everything to protect the
heirs (the children).

This often includes a Travel Ban on the minor children.

Imagine the Father dies. The Mother wants to take the kids back to the UK/USA for the funeral.
The Airport Immigration stops them. “Sorry Ma’am, the intense of the children’s inheritance is not
settled. They cannot leave.”

To lift this ban, you often need to post a financial guarantee or prove sufficiency. Immediate insurance cash
provides the leverage to hire the best lawyers to get an “Urgent Motion” passed.

3. The “School Fee” Pre-Payment

Schools in UAE are businesses. They are compassionate, but they need payment.

If the Father’s bank account is frozen, the check for Term 2 bounces.

If the check bounces, the school place is lost. The child loses their friends and routine in the middle of
grieving.

Families wish they knew that “Education Protection” is not just a marketing slogan. It is a
specific rider that pays the school directly. It bypasses the probate freezing entirely.

4. The “Visa Sponsor” Crisis

If the Father sponsored the visas, the visas are cancelled within 30 days of his death certificate.

The Mother must now sponsor the children herself.

The Requirement: To sponsor family, a woman usually needs to prove:

• She has a job (Salary Certificate).
• Or: She has sufficient funds.

If the Mother was a housewife, she has no job. She cannot sponsor the kids.
Unless… she can show a bank statement with AED 1 Million (Insurance Payout). That capital proves she can
support them, allowing her to keep the family in the country legally.

Case Study: The “Safety Deposit” Box

Ahmed kept his Life Insurance policy document in a bank safety deposit box.

Ahmed died.
The Bank froze the safety deposit box (because it’s an asset).

His wife knew he had insurance but couldn’t get the policy number to file the claim. It took 6 months to get
a court order to open the box. By then, the family was in debt.

The Lesson: Keep a digital copy of your policy in the Cloud (Google Drive/Dropbox) shared
with your spouse. Never lock the key inside the car.

FAQ: Essential Knowledge

Q: Should I get a “Wills for Non-Muslims”?
A: YES. 100%. A DIFC Will or Abu Dhabi Civil Will allows you to specifically name your wife
as the permanent Guardian. It overrides the default intricacies. It costs AED 5,000 – AED 10,000, but it is
as important as the insurance itself.

Q: Does the insurance pay for the Will?
A: No, but the Will ensures the Insurance money goes to the right person.