NRIs can save 20–50% on term plans: India vs abroad
Living far from home often brings up a constant concern: Will my family in India be financially secure if something happens to me? For many NRIs (Non-resident Indians) who support their parents and want to secure the future of their parents and other dependents, term insurance is more than just a policy; it offers peace of mind.
These responsibilities lead to a crucial question: Can NRIs buy term insurance in India to keep their loved ones back home financially safe?
Keep reading to learn about eligibility, key benefits, claim settlement process, and whether NRIs should opt for term insurance in India or in their country of residence.
What is an NRI term life insurance plan?
A term life insurance policy for NRIs works like a regular term plan in India, but need some extra documents. It keeps your loved ones financially secure by paying them a fixed amount if you are no longer there during the policy term.
“It is a pure protection plan which provides life cover for the entire policy term to life assured. In case of an unfortunate demise of the life assured, the entire sum assured is payable to the nominee. The process is broadly similar to that for resident Indians, with certain additional documentation such as passport details, visa status, overseas address proof and income documents,” says Vikas Gupta, Chief Product Officer, ICICI Prudential Life Insurance.
To provide ease of process to NRIs, medical underwriting over a video call is made available up to certain limits. However, if NRIs want to avail cover beyond these limits, then medical tests may be conducted in India or overseas through approved diagnostic centres, depending on the insurer’s norms, he adds.
Can NRIs buy term life insurance in India?
NRIs can buy term insurance plans from Indian insurers, subject to underwriting norms.
“Yes, NRIs and OCI can buy term insurance from Indian insurers; every case is subject to the underwriting guidelines of the insurer. Some insurers offer video medical tests, while some of the insurers require medical tests to be done at their network diagnostic centres in NRI’s residence country at the applicant’s cost,” says Nishant Kohli, Founder & CEO, NRI Nivesh.
The growing flexibility and digitisation have made it easier for NRIs to access term insurance plans from India without being physically present.
“NRIs can absolutely buy term insurance from Indian insurers. Most large insurers today allow the entire process to be completed online, including medical tests in your country of residence,” says Anita Teli, Chief Compliance Officer, Probus.
However, eligibility depends on certain conditions. The applicant must be an Indian citizen with NRI status and fully disclose their country of residence. Insurers may also impose restrictions based on the risk profile of the country.
“For instance, someone working in the UAE, UK, Singapore or the US typically faces no major issue, while someone residing in politically sensitive or high-risk regions may face higher premiums or limited options. So eligibility is less about being an NRI and more about the risk profile attached to the country you’re based in,” she adds.
How does claim settlement work if death occurs overseas?
The claim settlement process for NRIs is mostly simplified, even if the policyholder passes away abroad.
“When an NRI policyholder passes away overseas, the claim process can be initiated by intimation to the company, online or at any branch in India. Claim proceeds are paid via electronic transfer to a claimant’s bank account,” says Gupta.
Documents required for processing the claim may include:
Term life insurance key benefits for NRIs
One of the key advantages of NRIs buying term life insurance in India is that the premiums are significantly lower.
“The premiums for term insurance in India are significantly lower, often ranging from 20% to 50% cheaper compared to insurers in the US, Singapore, Middle East etc,” says Gupta.
Moreover, purchasing term insurance in India allows them to protect these India-based responsibilities in a structured manner. Further, the claim payout process becomes easier if the family resides in India.
Additionally, leading life insurers in India offer a video call-based medical underwriting (up to certain limits) for NRIs, providing a hassle-free onboarding process, he adds.
Should NRIs buy term life insurance in India or abroad?
The answer largely depends on where your financial responsibilities and dependents are based.
“If your dependents or financial liabilities are primarily in India, an Indian term plan makes strong financial sense because premiums are generally competitive and payouts can support family members back home. However, if your spouse and children live abroad and your expenses are in foreign currency, relying only on an Indian policy may not be ideal due to currency conversion and local tax considerations. Many NRIs choose a combination approach,” says Anita Teli.
Building on this, experts suggest that a single-policy approach may not always be sufficient for NRIs with cross-border financial commitments.
“Good financial planning for NRIs favours a hybrid, multi-jurisdictional structure, not a single-country dependency. Indian term premiums are often 30–50% more cost-efficient than international equivalents, making them an optimal hedge for INR-denominated liabilities. Meanwhile, local coverage ensures liquidity for foreign-currency expenses,” says Mudit Vijayvergiya, Founder & CEO, SBNRI.
These responsibilities lead to a crucial question: Can NRIs buy term insurance in India to keep their loved ones back home financially safe?
Keep reading to learn about eligibility, key benefits, claim settlement process, and whether NRIs should opt for term insurance in India or in their country of residence.
What is an NRI term life insurance plan?
A term life insurance policy for NRIs works like a regular term plan in India, but need some extra documents. It keeps your loved ones financially secure by paying them a fixed amount if you are no longer there during the policy term.
“It is a pure protection plan which provides life cover for the entire policy term to life assured. In case of an unfortunate demise of the life assured, the entire sum assured is payable to the nominee. The process is broadly similar to that for resident Indians, with certain additional documentation such as passport details, visa status, overseas address proof and income documents,” says Vikas Gupta, Chief Product Officer, ICICI Prudential Life Insurance.
To provide ease of process to NRIs, medical underwriting over a video call is made available up to certain limits. However, if NRIs want to avail cover beyond these limits, then medical tests may be conducted in India or overseas through approved diagnostic centres, depending on the insurer’s norms, he adds.
Can NRIs buy term life insurance in India?
NRIs can buy term insurance plans from Indian insurers, subject to underwriting norms.
“Yes, NRIs and OCI can buy term insurance from Indian insurers; every case is subject to the underwriting guidelines of the insurer. Some insurers offer video medical tests, while some of the insurers require medical tests to be done at their network diagnostic centres in NRI’s residence country at the applicant’s cost,” says Nishant Kohli, Founder & CEO, NRI Nivesh.
The growing flexibility and digitisation have made it easier for NRIs to access term insurance plans from India without being physically present.
“NRIs can absolutely buy term insurance from Indian insurers. Most large insurers today allow the entire process to be completed online, including medical tests in your country of residence,” says Anita Teli, Chief Compliance Officer, Probus.
However, eligibility depends on certain conditions. The applicant must be an Indian citizen with NRI status and fully disclose their country of residence. Insurers may also impose restrictions based on the risk profile of the country.
“For instance, someone working in the UAE, UK, Singapore or the US typically faces no major issue, while someone residing in politically sensitive or high-risk regions may face higher premiums or limited options. So eligibility is less about being an NRI and more about the risk profile attached to the country you’re based in,” she adds.
How does claim settlement work if death occurs overseas?
The claim settlement process for NRIs is mostly simplified, even if the policyholder passes away abroad.
“When an NRI policyholder passes away overseas, the claim process can be initiated by intimation to the company, online or at any branch in India. Claim proceeds are paid via electronic transfer to a claimant’s bank account,” says Gupta.
Documents required for processing the claim may include:
- Duly filled and signed claimant statement form
- Copy of the death certificate of the life assured issued by the government authority
- Recent photograph of the claimant/nominee, etc.
Term life insurance key benefits for NRIs
One of the key advantages of NRIs buying term life insurance in India is that the premiums are significantly lower.
“The premiums for term insurance in India are significantly lower, often ranging from 20% to 50% cheaper compared to insurers in the US, Singapore, Middle East etc,” says Gupta.
Moreover, purchasing term insurance in India allows them to protect these India-based responsibilities in a structured manner. Further, the claim payout process becomes easier if the family resides in India.
Additionally, leading life insurers in India offer a video call-based medical underwriting (up to certain limits) for NRIs, providing a hassle-free onboarding process, he adds.
Should NRIs buy term life insurance in India or abroad?
The answer largely depends on where your financial responsibilities and dependents are based.
“If your dependents or financial liabilities are primarily in India, an Indian term plan makes strong financial sense because premiums are generally competitive and payouts can support family members back home. However, if your spouse and children live abroad and your expenses are in foreign currency, relying only on an Indian policy may not be ideal due to currency conversion and local tax considerations. Many NRIs choose a combination approach,” says Anita Teli.
Building on this, experts suggest that a single-policy approach may not always be sufficient for NRIs with cross-border financial commitments.
“Good financial planning for NRIs favours a hybrid, multi-jurisdictional structure, not a single-country dependency. Indian term premiums are often 30–50% more cost-efficient than international equivalents, making them an optimal hedge for INR-denominated liabilities. Meanwhile, local coverage ensures liquidity for foreign-currency expenses,” says Mudit Vijayvergiya, Founder & CEO, SBNRI.
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