Non-resident Indians (NRIs) are increasingly opting for term-insurance plans from Indian insurers — and recent data suggests the demand is surging. According to a report by Policybazaar, purchases of term insurance by NRIs have doubled over the past two years (FY22 to FY26 YTD).
This shift in looking homewards reflects a combination of competitive pricing, favourable policy features, global coverage and structural changes in how term insurance is offered to NRIs.
Why More NRIs Are Buying Term Plans from India
Lower premiums and cost advantages
Indian insurers often provide term-insurance premiums that are 30–50% lower compared to similar policies available abroad. Moreover, a recent policy change has removed the previously applicable 18% GST on term-life insurance premiums for NRIs — provided certain conditions (like premium payment from NRE account) are met.
This waiver substantially reduces the cost burden, making term insurance from India financially more attractive than overseas alternatives.
Rupee-denominated payouts & long-term protection for families back home
For many NRIs, their families (dependent parents, spouse, children) reside in India. Indian term plans offer rupee-denominated payouts, which shields the beneficiaries from currency fluctuations and avoids complications of foreign payouts.
In addition, these policies often offer long durations and high sum assured, enabling adequate coverage to safeguard long-term financial commitments like loans, children’s education, or retirement support.
Convenience: Digital onboarding, global coverage and easier maintenance
Insurance providers have streamlined the application and servicing process for NRIs. Many offer dedicated online portals, where applicants living overseas can submit documents, complete medicals (abroad or on visiting India), and pay premiums via NRE/NRO accounts or international banking.
Furthermore, once issued, most Indian term-insurance policies remain valid globally, even if the insured passes away abroad, nominees in India (or abroad) can claim benefits, provided formalities like residency declaration and KYC update are properly completed.
Key Markets & Buyer Demographics Among NRIs
- According to the Economic Times, the majority of NRI term insurance purchases come from the Gulf region (UAE and other GCC countries) — accounting for around 59 % of all NRI term-life policies issued between FY22 and 2026 (YTD).
- Another emerging trend as mentioned by Business Today: women are increasingly participating in NRI term-insurance buys. As of 2025, female buyers constitute a growing portion of the NRI customer base.
- Age-wise, a substantial portion of buyers fall in the 31–40 years bracket — typically professionals or business owners abroad, balancing global income with responsibilities at home (family, property, loans).
Regulatory & Practical Considerations for NRIs
- When an Indian resident becomes NRI (or vice versa), one must declare the change of status to their insurer and update KYC — including passport, visa/work permit, and overseas address. Failure to do so may complicate claims.
- For medical underwriting: while some insurers may require physical medical tests in India, many now allow medical evaluation abroad through partner clinics — facilitating convenience for overseas residents.
- As global citizens, NRIs should ensure the selected plan offers worldwide coverage (not just domestic) and check claim-settlement ratios, sum assured limits, and other service terms carefully.
What This Means for NRIs Seeking Term Insurance in 2026
The recent surge in adoption of Indian term-insurance plans by NRIs signals a clear shift in mindset: many recognise that India-based term plans offer compelling cost-benefits, ease of maintenance, and better alignment with their long-term obligations in India.
For NRIs, especially those living in Gulf countries, the US, or other overseas destinations (with dependents or assets in India), this offers an efficient way to safeguard family finances without incurring high foreign premiums or currency-risk.
As insurers continue to refine offerings (simplifying documentation, enabling global coverage, and promoting digital servicing) the NRI term-insurance market seems poised for further growth.
Donald G. is the Principal Consultant at NRI Money+. He specialises in creating personalised financial plans for NRIs (Non-Resident Indians) and HNI (High Net-worth Individuals).
