DUBAI — High-net-worth (HNW) and ultra-high-net-worth (UHNW) individuals across the Middle East are increasingly leveraging life insurance as a strategic financial tool—transforming it from a basic protection product into a core component of modern wealth planning.
As regional wealth expands and crosses borders, life insurance is being used to solve complex financial needs, from estate liquidity and tax mitigation to succession planning and investment management. These trends will be a central focus at the upcoming HNW Insurance Summit 2025 in Dubai, where industry leaders will gather to share solutions and insights.
UAE Emerges as a Global Wealth Hub
With its zero income tax, advanced infrastructure, and a steadily maturing regulatory framework, the UAE continues to attract affluent individuals from around the world. Many arrive with international footprints—dual residencies, diverse asset classes, and family members spread across continents.
“Increasingly, life insurance products such as Private Placement Life Insurance (PPLI) and Variable Universal Life (VUL) are being used to structure these complex holdings in a compliant and flexible way,” said a senior tax adviser at an international consulting firm. “These vehicles allow for tax efficiency, estate liquidity, and confidentiality—key priorities for global families.”
PPLI: A Bespoke Solution for UHNW Clients
Among the most prominent solutions is PPLI, which allows policyholders to integrate tailored investment strategies within life insurance structures. Unlike traditional life policies, PPLI offers greater flexibility and is often managed by a client’s existing wealth team.
“Think of PPLI as the private banking version of insurance,” said a senior executive at a global insurer. “It provides control, customisation, and critical estate planning benefits—especially valuable for entrepreneurs and mobile investors.”
For clients acquiring residency in tax-heavy jurisdictions such as the U.S. or U.K., PPLI also offers a path to mitigate estate taxes when correctly structured.
Growing Demand for Shariah-Compliant Solutions
As interest in sophisticated insurance solutions grows, so does the demand for Shariah-compliant options. Takaful (Islamic insurance) and other Shariah-aligned planning tools are becoming essential for many families in the Gulf Cooperation Council (GCC).
“Clients are asking whether these products align with their faith as well as their financial goals,” said a regional insurance consultant. “It’s not just about returns—it’s about values.”
Today, several insurance solutions incorporate features common in Western products while meeting Islamic inheritance and investment principles.
Premium Financing Resurfaces Despite Rising Rates
Premium financing is gaining renewed interest, particularly for large policies with multimillion-dollar premiums. While rising interest rates might suggest caution, many HNW individuals are using financing to preserve liquidity and avoid selling key assets.
“Premium financing allows wealthy clients to leverage their balance sheets strategically,” said the head of HNW solutions at a regional insurer. “As long as the strategy is conservative and well-aligned with their asset base, it can be a powerful planning tool.”
However, advisers warn that such strategies require coordination across tax, legal, and financial disciplines to ensure long-term success.
Life Insurance Becomes a Family Office Essential
Family offices—both institutional and private—are increasingly integrating life insurance into their core wealth planning strategies. Once viewed solely as a protection product, insurance is now used to manage risk, ensure succession, and optimize cross-border structuring.
“We don’t call it insurance anymore,” said the CEO of a private family office. “It’s a liquidity strategy, a wealth transfer tool, a regulatory solution—it’s multifaceted.”
Industry professionals also note increased involvement from younger generations, who are more engaged in structuring the family legacy and aligning it with their future goals.
Adapting to a Complex Regulatory Environment
As international transparency laws such as CRS, FATCA, and BEPS reshape global tax planning, life insurance has emerged as a compliant alternative to older offshore structures.
“Clients no longer want secrecy—they want structure,” said a compliance executive at a multinational insurer. “Properly implemented life insurance offers a way to meet today’s reporting requirements without compromising on flexibility.”
In parallel, regulatory oversight in the UAE is becoming more robust, prompting a shift toward higher professional standards and more transparent advisory practices.
Technology Reshaping the Client Experience
Digital innovation is also playing a key role in transforming life insurance. HNW clients now expect streamlined onboarding, real-time access to investment performance, and greater transparency.
“The perception of life insurance as slow or outdated is changing fast,” said a regional head of distribution at a top insurer. “Modern platforms offer speed, simplicity, and control—exactly what today’s clients expect.”
This tech-driven shift aligns with the region’s young, mobile, and tech-savvy wealth demographic.
From Protection to Precision
In today’s Middle East, life insurance is no longer just about risk coverage. It has evolved into a multi-functional solution that supports estate planning, tax efficiency, regulatory compliance, and investment strategy.
“For many clients, life insurance is now one of the smartest investments they can make,” said a senior private wealth adviser. “It’s not just about protection—it’s about precision.”
These themes will be explored in depth at the HNW Insurance Summit 2025 in Dubai, where leading voices in wealth, law, tax, and insurance will chart the future of high-net-worth planning in the region.
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