Living abroad doesn’t mean you can’t secure your family’s financial future back home.
With Indian term insurance for NRIs, you can easily get high life cover, pay premiums in
INR or foreign
currency, and ensure your family receives payouts directly in India.
Most leading insurers now offer digital onboarding, video KYC, and even medicals
abroad
- making it
simple for NRIs to buy protection from wherever they are.
This guide explains who can apply, how the claim process works globally, and why
Indian
term plans often
cost 40-60% less than overseas options.
Who Qualifies as an NRI
- An Indian citizen living abroad for employment, business, or studies.
- A Person of Indian Origin (PIO) or Overseas Citizen of India (OCI).
- A foreign national married to an Indian citizen (select insurers).
Why NRIs Buy Term Insurance in India
- Cheaper Premiums: Up to 50-60% lower than foreign term plans.
- INR Claim Settlement: Family in India receives payout directly in Indian rupees.
- Global Coverage: You’re protected worldwide, 24-7.
- Video KYC: No need to visit India - apply and verify remotely.
- Medical Flexibility: Get medicals done locally at approved diagnostic centers abroad.
- Tax Benefits: Still eligible for 80C & 10(10D) if you file taxes in India.
Eligibility for NRI Term Plans
| Criteria |
Requirement |
| Age |
18-65 years (varies by insurer) |
| Nationality |
Indian Citizen / PIO / OCI |
| Residency Proof |
Valid passport, visa, or foreign address proof |
| Medical Check-up |
Online / Partner hospital / Embassy-attested |
| Payment Mode |
INR (India account) or foreign remittance |
| Documents Needed |
PAN, passport, overseas address proof, income proof, FATCA declaration |
How NRIs Can Buy Term Insurance Online
- Visit PolicyBachat.com → Term Insurance for NRIs.
- Enter details: age, country, city (Hyderabad), income, and desired cover.
- Compare quotes from leading NRI-friendly insurers.
- Upload KYC (Passport, PAN, foreign address proof).
- Complete video KYC and medical test (via local center or online).
- Pay via INR account, credit card, or remittance.
- Policy issued digitally with instant e-policy delivery.
Sample Premium Comparison For NRIs (Age 30, ₹1 Cr Cover)
| Country |
Insurer |
Annual Premium (₹) |
Claim Settlement Ratio |
| UAE |
SBI Life |
₹10,200 |
96% |
| Singapore |
HDFC Life |
₹9,800 |
97% |
| USA |
ICICI Prudential |
₹11,000 |
95% |
| UK |
SBI Life |
₹10,500 |
94% |
How Claims Work For NRIs
1. Death in India:
Nominee files claim in India with local documents (death certificate, ID, policy copy).
2. Death Abroad:
Nominee submits death certificate attested by Indian Embassy/Consulate + notarized
translation if
required. Payout transferred directly to Indian bank account (or abroad on request).
Timeline:
- IRDAI mandates settlement within 30 days of complete document submission.
Benefits of Buying From India Vs Abroad
| Feature |
Indian Term Plan |
Foreign Term Plan |
| Premium (₹1 Cr) |
₹10,000-₹15,000 |
₹20,000-₹35,000 |
| Currency |
INR |
Local |
| Claim Payable To |
India nominee |
Local account |
| Coverage Scope |
Global |
Local jurisdiction |
| Tax Benefits (India) |
80C & 10(10D) |
Usually not applicable |
| Ease of Application |
Online KYC + Video medical |
Physical verification |
Local Insights for NRIs
- Top 3 insurers for NRIs: SBI Life, HDFC Life, ICICI Prudential.
- Avg. premium (₹1 Cr, age 30): ₹10,500.
- % of NRI policies issued online: 72%.
- Most common claim region: Gulf (UAE, Qatar, Oman).
Tax & Payment Notes
- Pay in INR from NRO/NRE account or via international card.
- Premiums qualify under Section 80C if filing Indian tax returns.
- Claim payouts to family in India are tax-free under 10(10D).
- FATCA compliance mandatory for US residents.
Tips For NRIs Buying Term Insurance
- Always disclose foreign address and occupation accurately.
- Opt for limited-pay if planning to retire in India.
- Confirm insurer’s claim processing for international deaths.
- Maintain policy and receipts digitally for easy nominee access.
- Prefer insurers with claim ratio above 95% and NRI claim experience.
FAQs
Can NRIs buy term insurance in India?
Yes. NRIs, OCIs, and PIOs can buy term insurance from Indian insurers online.
Is NRI term insurance valid worldwide?
Yes, coverage is global unless specifically excluded (e.g., war zones).
How can I pay premiums from abroad?
Through NRE/NRO accounts, debit/credit cards, or international remittance.
Do NRIs get same premiums as Indian residents?
Usually yes, though some insurers charge slightly higher rates depending on country risk profile.
Do I need to visit India for medical tests?
No, most insurers offer medical exams abroad through partner labs or telemedical options.
Can NRIs get tax benefits on Indian term plans?
Yes, if you file returns in India, you can claim under Sections 80C and 10(10D).
What happens if I move back to India?
Policy continues seamlessly; you can update address and payment method.
Are claims valid if death occurs abroad?
Yes, provided death certificate is attested by the Indian Embassy/Consulate.
Can I assign an NRI as a nominee?
Yes, nominee can be Indian or foreign resident — payouts can be made in India or abroad.
Are TROP or Whole Life options available for NRIs?
Yes, many insurers offer both return-of-premium and lifetime coverage for NRIs.
Do NRIs need to disclose foreign income?
No, only occupation and source of funds for the policy.
Can I switch to another insurer later?
Yes, you can buy a new policy anytime without penalty.
What documents are needed for NRI claim?
Death certificate (attested), passport copy, embassy letter (if death abroad), policy and nominee ID.
Which countries are excluded by insurers?
Only high-risk nations under sanctions or war (e.g., Syria, Afghanistan).
How long does claim settlement take for NRIs?
Typically 7-15 days, same as domestic claims, once documents are verified.
Customer Reviews
- “Applied from Dubai - video KYC done in 10 minutes!” - Nikhil Menon, UAE
- “My insurer arranged medicals in Singapore - smooth process.” - Priya D’Souza,
Singapore
- “PolicyBachat helped me compare NRI-friendly insurers easily.” - Ravi Chandran,
London
- “Premiums were much cheaper than US plans - great savings.” - Manisha Iyer,
California
- “Got my claim documents attested at embassy - payout in 8 days.” - Anil Krishnan,
Doha
- “Flawless online process - didn't have to travel.” - Surbhi Thomas,
Melbourne
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