Emiratis Secure Their Future: Groundbreaking Life Insurance Program Extends Coverage to Age 95

UAE Extends Life Insurance Coverage to Age 95, Breaking Market Barriers for Home Buyers

The UAE has taken a significant step toward expanding homeownership opportunities by launching a groundbreaking life insurance program that covers citizens until age 95—25 years beyond the current market standard. This initiative, resulting from a strategic partnership between Abu Dhabi National Insurance Company and the Sheikh Zayed Housing Programme, allows Emiratis up to age 70 to secure 25-year mortgage terms, dramatically widening access to housing finance for older citizens.

Breaking Age Barriers in Housing Finance

The new program addresses a critical gap in the UAE's housing market by extending life insurance coverage well beyond the traditional 70-year age limit. This extension enables citizens who previously faced age-related mortgage restrictions to access long-term housing loans, effectively adding a quarter-century of eligibility for homebuyers.

The partnership leverages local banks participating in the Sheikh Zayed Housing Programme, creating a comprehensive ecosystem that connects insurance, banking, and government housing initiatives. Abu Dhabi National Insurance Company will coordinate the program alongside other prominent local insurers, ensuring broad market participation.

Strategic Implications for Financial Inclusion

Demographic Dividend

This move comes at a crucial time for the UAE, where an aging population and extended life expectancy create new financial planning challenges. By acknowledging that citizens remain economically active well into their 70s, the program aligns insurance products with modern demographic realities.

Market Innovation

The initiative positions the UAE as a regional leader in innovative financial products. While other Gulf states maintain traditional age limits for mortgage-related insurance, the Emirates is pioneering solutions that reflect contemporary lifestyles and career patterns, where individuals often pursue second careers or delayed homeownership.

Investor and Market Perspective

For the insurance sector, this program represents both opportunity and calculated risk. Extending coverage to age 95 requires sophisticated actuarial modeling, but it also opens previously untapped market segments. The government backing through the Sheikh Zayed Housing Programme provides risk mitigation while ensuring the program serves national housing objectives.

Real estate developers and mortgage lenders should benefit from an expanded buyer pool, particularly in the luxury and mid-market segments where older, financially established buyers typically operate. This demographic often brings substantial down payments and stable income streams, making them attractive borrowers despite their age.

Regional Context and Global Trends

The UAE's approach contrasts with more conservative insurance markets in the region while aligning with global trends toward age-inclusive financial services. Countries like Singapore and parts of Europe have similarly extended mortgage eligibility for older borrowers, recognizing that traditional retirement ages no longer reflect economic reality.

As CEO Charalambos Milonas emphasized, the program reflects the insurance industry's evolving role in supporting societal stability and economic security. This philosophy mirrors successful models in developed markets where insurance serves as a cornerstone of comprehensive social and economic policy.

Long-term Impact on Housing Market Dynamics

By removing age-related barriers to homeownership, the UAE is likely addressing both immediate housing demand and long-term wealth preservation goals. Older buyers often seek homes as legacy assets or retirement security, driving demand in stable, high-quality developments.

The program also signals the government's commitment to ensuring that the Sheikh Zayed Housing Programme remains relevant and accessible as the UAE's demographic profile evolves. This adaptability suggests a mature approach to policy-making that anticipates rather than merely reacts to social and economic changes.