Indexed universal life insurance (IUL) is permanent life insurance from international insurers, with a US dollar death benefit from US$1m and a cash value that earns index linked credits within a 0% floor and a cap; policy charges still apply, so cash value can fall. UAE residents, expatriates and Emiratis can hold IUL, personally or through an offshore trust or company where the insurer accepts it. The UAE does not levy income tax on individuals; tax in a home country or a future country of residence can still apply. Capital for Life specialises in IUL and PPLI for internationally mobile families and the advisers who serve them. Information, not advice.
Can I buy IUL while living in Dubai?Yes. UAE residents, expatriates and Emiratis aged 18 to 79 can hold IUL from international insurers, with cover from US$1m.
Everything on this page is information, not advice. You can come to us directly, or through your financial adviser or private bank.
We work with you directly. Policies are issued on the basis of your country of residence, not your nationality, and we coordinate the illustrations, underwriting and medicals with the insurer.
To request an illustration, email quotes@capitalforlife.com.
Where you introduce a client, your own regulatory permissions govern the advice given to your client, and the client relationship stays with you. We provide the specialist structuring: insurer comparison, underwriting coordination and policy design.
Yes. UAE residents, expatriates and Emiratis can buy IUL from international life insurers. We are not aware of any UAE-based insurer that offers indexed universal life insurance.
Eligibility is set by your country of residence and the insurer's underwriting, not your nationality. Insurers accept applicants aged 18 to 79, and cover starts at US$1m of death benefit. There is no fixed upper limit for qualified applicants: large (jumbo) cases are structured across more than one insurer.
A policy can be owned personally, or by an offshore trust or company. Each insurer sets its own rules on which ownership routes it accepts for UAE residents, so the route is agreed before the application goes in.
Capital for Life specialises in IUL and PPLI for internationally mobile families and the advisers who serve them. Most of its business comes from the UAE and the Middle East, and its founder, Carlton Crabbe, is based in Dubai. The full guide to the product is what is indexed universal life insurance.
Cover starts at US$1m with no fixed upper limit. Cases of US$10m and more, often called jumbo life insurance, are structured across several international insurers.
A US dollar policy that stays in force wherever you live next, so the cover and the cash value move with you when you leave the UAE.
A company can own the policy on a founder, partner or key executive and receive the death benefit. See Key Person for Life.
Borrow against the cash value to clear property loans or fund a purchase, as in the client case below.
| Feature | Term life | Whole of life | IUL |
|---|---|---|---|
| Length of cover | A set number of years | Lifetime, while premiums are paid | Lifetime, while the policy is funded |
| Cash value | None | Depends on the contract; guaranteed protection plans often have none | Yes, earning index-linked credits within a 0% floor and a cap |
| Borrowing against the policy | No | Only where the contract builds a cash value | Yes, through policy loans from the insurer |
| Suited to | A need for a fixed period, such as a mortgage | Lifetime cover at a set cost | Lifetime US dollar cover with a cash value to borrow against |
The uses that lead are borrowing against the policy for property and business, retirement income alongside the end of service gratuity, and a defined US dollar legacy for family. Each is a structure to consider, not a recommendation.
Once cash value has built, you can borrow against it to buy property in Dubai or abroad, fund a business opportunity or pay school fees, and keep your investments in place. The loan is a contractual right under the policy, arranged with the insurer, and funds are typically available within days.
The policy stays in force while the loan runs. Loan interest applies, and any outstanding loan is deducted from the death benefit. See how IUL policy loans work.
Expatriate employees in the UAE rely mainly on the end of service gratuity their employer pays, which often falls short of long-term retirement needs. An IUL builds a second pool, in US dollars and outside any employer scheme.
You choose when to start drawing on it, at 50, 60 or later, usually through policy loans. See Income for Life.
The death benefit is set from day one and paid in US dollars to the beneficiaries you name, in the shares you choose, or to the trust that owns the policy. Families use it to leave a defined sum to children who live in different countries.
See Family for Life and, for company owners, key person cover.
Interest on US$2.25m of property loans, a year
$129,375 − $101,250 = $28,125, a net 1.25% on $2,250,000.
A 60-year-old married investor in Dubai had US$3m to invest and US$2.25m of property loans costing US$155,650 a year in interest. He funded an IUL policy and used a policy loan from the insurer to clear the bank debt.
The insurer charges 5.75% on the loan and credits 4.50% on the amount borrowed, so the loan costs a net 1.25%: US$28,125 a year. Rental income pays the loan down. If he dies first, the death benefit settles any balance, so his family inherits the properties free of bank debt.
Share of selections, multiple selections allowed · 1,800 verified enquiries, June 2024 to June 2025
Many UAE investors already hold an offshore bond. An international IUL is also a life insurance policy issued outside the investor's home country, and for UK tax it is treated in the same way as an offshore bond. The difference is what sits inside: an offshore bond holds an investment portfolio, while an IUL holds a death benefit and a cash value that earns index linked credits. Offshore bonds and IUL compared.
IUL is a life insurance policy first, with credits earned inside the insurer's index accounts. Families who want open investment choice use private placement life insurance (PPLI) or an offshore bond instead, and some hold both for different jobs.
An IUL policy has two parts: a death benefit and a cash value. Premiums, after charges, build the cash value, which earns credits linked to an index such as the S&P 500, within a cap and a 0% floor.
The cap rate limits the credit in a strong year. The floor means a negative index year produces a nil credit instead of an index loss. Policy charges are deducted regardless, which is why cash value can still fall in a flat or negative year.
Once sufficient cash value has built, you can borrow against it. Fixed and participating loans behave differently in different index conditions. The death benefit is paid to your beneficiaries under the policy terms.
Hypothetical S&P 500 returns · 9.3% annual cap · 0% floor
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
|---|---|---|---|---|---|---|---|---|
| S&P 500 return | +13.7% | -9.1% | +5.5% | +19.4% | -14.2% | +7.8% | -3.5% | +14.0% |
| IUL credit | 9.3% | 0% | 5.5% | 9.3% | 0% | 7.8% | 0% | 9.3% |
Each insurer sets its own caps, charges, underwriting terms and ownership rules. A policy illustration shows the figures for a specific policy.
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Capital for Life works with regulated financial advisers, private banks, trustees and family offices, and with the internationally mobile families and entrepreneurs they look after. Where an adviser introduces a client, that adviser's own regulatory permissions govern the advice given to their client.
This page is general information about indexed universal life insurance for residents of the United Arab Emirates. It is not an offer, invitation or recommendation to any person, and it does not take account of individual circumstances. Policy terms, underwriting, eligibility and ownership rules are set by each insurer. UAE tax rules are stated as at November 2026 and can change, and tax treatment depends on residence, citizenship and ownership. Capital for Life Ltd does not provide legal or tax advice. Seek advice from a suitably qualified adviser before acting.
Capital for Life is a Partner Practice of Forest Wealth for the purpose of advising on the company's wealth management products and services. Forest Wealth is regulated in Switzerland, Mauritius, and South Africa, with recognised regulatory relationships in the UAE, the United Kingdom, Europe, and the United States. Service availability may vary by location.
© 2026 Capital for Life Ltd. All rights reserved.
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