A survey by Zurich International Life also revealed that two-thirds of residents with life insurance policies only have a maximum of two years income cover.
Zurich said that families of residents without life insurance policies will not be provided with a cash lump sum on the event of their death.
It added that the money provided to those with only two years of cover would be insufficient to match the loss of income from a primary salary earner permanently.
Critical illness cover was found to be held by only 20% of residents.
Critical illness insurance helps to cover the cost of medical treatment and replace lost earnings on diagnosis of a serious medical condition or permanent disablement as a result of injury and illness.
Andrew Oliver, head of propositions and life insurance expert at Zurich International Life, said: “What is most concerning about this survey is finding that 60% of people with children do not have life insurance.
“Life insurance and critical illness cover provide solutions to help protect you and your family from the unexpected.
UAE residents from all seven UAE Emirates participated in the survey which was carried out in September 2013. Respondents were asked if they had life insurance and the amount of cover they had taken in terms of annual incomes, and whether they had critical illness cover.
