Term Life Insurance for NRI

Term insurance is important for all individuals. Whether you live in India or abroad, ensuring the well-being of your loved ones in your absence is important. Term insurance for NRIs (Non Resident Indians) is mainly important as living in a foreign country can be challenging for your family if you are longer there to support them. In case of your absence, the insurance payout can help your family in different ways, such as relocating to India, meeting their financial needs, enhancing their life quality and much more.

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What is Term Insurance for NRI Plans?

Term insurance for NRIs is defined as term life insurance plans designed for NRIs (Non-Resident Indians), OCI cardholders, PIOs, and their families to cater to the financial needs of NRIs and their families. These plans provide financial security and a death benefit to the family if something happens to the policyholder, no matter where they live abroad. NRIs can buy term plans from Indian insurance companies, ensuring their family has important financial protection even if they are in another country.

NRI term insurance plans offer a wide range of coverage options and policy terms to choose from and can be purchased online or offline. With tele-medical checkups, the online buying process of term plans has become hassle-free for NRIs living anywhere in the world.

Note: The full form of OCI is Overseas Citizenship of India and PIO is Person of Indian Origin

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Can NRIs Buy Term Plans in India?

Yes, NRIs can easily buy the best term insurance plan in India.

Geographical boundaries are no longer a barrier for NRI customers willing to buy term insurance plans in India. They can now easily buy term plan in India that allow them to schedule a video or telemedical check-up from their residential country.

How Do Term Insurance Plans For NRI Work in India?

Term insurance for NRI works like any other protection plan in India. In this, the policyholder pays a premium amount to the insurance company in return for pure risk cover (sum assured). In case of an unforeseen event of the policyholder’s death during the policy tenure, the sum assured amount is paid to the beneficiary/nominee.

NRIs also have the option to choose the term insurance ROP (Return of Premium) option in which the total of all the premium amounts is returned at maturity if the policyholder survives the policy term.

Moreover, NRIs can also add add-ons/riders to enhance the coverage of their plan. 

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Best Term Insurance Plans for NRIs in India 2024

Here is the list of best term insurance for NRI in India:

Best Term Insurance for NRI Entry Age Maturity Age Sum Assured
Max Life Smart Secure Plus 18 years to 60 years 85 years 1 Crore - 10 Crores
Tata AIA Sampoorna Raksha Supreme 18 years to 60 years 100 years 1 Crore - 20 Crores
Tata AIA SRS Vitality Protect 18 years to 60 years 85 years 1 Crore - 2 Crores
Tata AIA Maha Raksha Supreme 18 years to 60 years 85 years 2.5 Crores - 20 Crores
PNB Mera Term Plan Plus 18 years to 50 years 80 years 1 Crore - 1.5 Crores
HDFC Life Click 2 Protect Life 18 years to 65 years 85 years 1 Crore - 2.5 Crores
ICICI Pru iProtect Smart 18 years to 65 years 99 years 1 Crore - 2 Crores

Disclaimer: Policybazaar does not endorse, rate, or recommend any particular insurer or insurance product offered by an insurer.

Note: You can also use term insurance for NRI premium calculator to estimate the applicable premium payable for the desired NRI term insurance.

Here is a list of some points that NRIs should keep in mind when buying a term plan: 

What are the Features of Term Insurance for NRI Plans?

Let us look at some of the features of this protection plan for NRI in India:

  • Hassle-free payments
    NRI Term Insurance in India offers easy methods to pay premiums. Payments can easily be made online using credit cards/net banking. They can pay through their NRE (Non-Residential External) accounts.

  • Flexibility to choose life cover
    The pure risk cover amount can be easily chosen based on the requirements. Term insurance for NRIs provides a sum assured amount, ranging from Rs. 1 Crore to Rs. 20 Crores, fulfilling every individual's financial needs.

  • Policy Term as per your requirements
    NRIs have a number of options when choosing the policy term of a term insurance plan. The tenure for term insurance for NRIs can range from 5 years to 99/100 years. Also, the minimum age to buy a term plan is 18 years, and 65 years is the maximum.

  • Easy Documentation
    The documentation process for NRI term insurance is quick and simple. You are required to submit documents like identity proof and address proof, passport, and medical test reports along with the KYC documents.

  • Tax Benefits
    You can easily claim term insurance tax benefits with term insurance for NRI in India. These plans offer tax benefits under sections 80C and 10(10D) of the Income Tax Act, of 1961.

Who is Eligible to Buy Term Insurance for NRI in India?

Here is a list of individuals who are eligible to buy protection for expats using term life insurance for NRI in India:

Non Resident Indians (NRIs): NRIs are Indian citizens with valid Indian passports living temporarily in a foreign country.

Overseas Citizen of India (OCI)/Person of Indian Origin (PIO): They are citizens of foreign countries except for Bangladesh or Pakistan. They should fulfil the following criteria:

  • Having an Indian passport in the past

  • Parents or grandparents who were citizens of India

  • Spouse of an Indian citizen

Foreign Nationals: They are citizens of a foreign country living in India.

Why Should I Buy NRI Term Life Insurance in India?

Here is a list of reasons for NRIs to buy term insurance plans in India: 

  • Providing financial stability to dependents by compensating income loss in case of unforeseen policyholder’s death. 

  • Ensure that the burden of any outstanding loans/debt at the time of the policyholder’s death does not influence the dependent’s finances.

  • Term insurance plans in India can be customised to meet NRIs' specific needs and circumstances, ensuring comprehensive coverage for themselves and their families.

What are the Benefits of NRI Term Life Insurance Plans?

Here is a list of some of the benefits of buying the best term insurance for NRI in India:

  • High Life Cover at Affordable Rates
    With term insurance for NRI in India, you can get large life cover at affordable premium rates up to 50 to 60% more budget-friendly than international term life insurance plans. For example, an NRI term insurance for 2 Crores in the United Arab Emirates from Indian insurers would be Rs. 1816, per month.

  • Flexible Premium Payment Modes
    You can get a high amount of pure risk cover from protection plans at a low premium rate. Premium payments can be made either monthly, bi-yearly, quarterly, or annually. The earlier you buy a term plan, the lower the premium you have to pay.

  • Video or Tele-medical check-up
    Policyholders can now easily purchase NRI term life insurance plans in India by scheduling a telemedical checkup from their residential country.
    At the onset of the pandemic, the underwriting rules were tightened, and policy buyers were required to undergo physical medical tests. The coverage amounts had been capped. But, now, with the relaxation in rules and regulations, NRIs can receive a large pure risk cover with tele-medicals checkups on term insurance.

  • Long-Term Coverage
    Term Insurance for NRIs offers pure risk cover for a long policy tenure. Some plans provide coverage even for as long as 99/100 years. These protection plans offer a comprehensive and flexible cover with multiple options to financially protect the life assured and his/her family members.

  • Limited Pay Benefit
    NRIs can also avail of limited pay benefits in term insurance plans. In this, recurring payments are made for a pre-specified limited time period. However, the life cover remains intact throughout the policy tenure. Thus, you can pay your premiums for a short period of time and save money accordingly.

Additional Benefits of NRI Term Insurance

Here is a list of the additional benefits of buying term insurance for NRI in India.

  • Accidental Death Benefits
    NRIs can add the Accidental Death Benefit rider to their term insurance plan. This accidental death cover offers an extra sum assured and provides additional protection in case of accidental death.

  • Terminal Illness Benefits
    Term Insurance Plan for NRIs provide you coverage against terminal illnesses. It gives you lump sum payouts in case of the diagnosis of a terminal illness.

  • Cover Against Critical Illness
    With NRI Term Insurance, you can get enhanced coverage against specific critical illnesses for the entire policy term. This can help you pay the hefty medical bills and treatment costs on the diagnosis of a critical illness covered under the plan.

  • Waiver of Premiums on Disability
    With this rider, the remaining premiums will be waived off in case of a job loss due to an accidental total permanent disability occurred during the policy term. This allows you to continue the cover even in case of an accidental disability.

Why Should NRIs Buy Term Insurance from India than Foreign Term Insurers?

Below are some of the reasons why Term insurance for NRI in India is more beneficial than international term life insurance plans:

The presence of a large number of insurers in India: In India, there are various life insurance providers enlisted under the insurance regulating authority, and every company offers different types of Term insurance for NRIs with high life cover at affordable rates.

Pre-Approved Cover: With Policybazaar, you can exclusively get pre-approved term insurance cover of up to 2 Crores with no medical tests and hassle-free processing.

Worldwide Cover with 24/7 Claim Assistance: Term insurance for NRIs provides cover all around the world and helps customers with claim assistance 24/7.

Medical Costs Covered: Several Indian insurers cover the medical costs required to buy NRI term insurance. This means customers would not have to bear the burden of expensive medical tests.

Tele-medical Check-ups: NRIs can now easily schedule a video or telemedical check-up from his/her residential country when buying term insurance for NRIs.

Claim Settlement Ratio: The CSR is the % of claims that an insurance company settles yearly out of total claims. It indicates the reliability and credibility of the insurer. So, if the CSR of an insurer ranges between 95-100%, you need not think twice before purchasing an NRI term insurance. Almost all the Indian term insurers have a good CSR, such as Max’s CSR is 99.34%, and Tata AIA CSR is 98.53%.

Easy Claim Process: Buying an NRI term insurance from India can help your family get their claims settled easily and hassle-free. This is because if the insurance company is in India, your grieving family won’t have to worry about travelling all the way to your current country of residence to get their term insurance claim settled. They can easily contact and file for term insurance claim settlement in India in their time of need.

Low Premium Rates: Term insurance for NRI plans from India are approx. 50% to 60% more affordable in rates when compared to international term life insurance plans from other developed countries. The NRI term life insurance policy from India would have upto 50% lower premium rates than abroad. The difference in level term life insurance rates varies from one country to another. So, it is always a good idea to buy term plan from India at a low premium.

Let’s understand this with the help of an example:

In the UAE, the cost of a term insurance plan for a death benefit or a sum assured amount of Rs. 1.05 Crore for a 30-year-old individual is around Rs.2000 per month. for a policy tenure of 15 years. And, in India, the term insurance premium rates for NRI are as low as around Rs 840 per month.

Criteria Foreign Insurer (UAE) India
Age 30 years 30 years
Cover Till Age 45 years 45 years
Life Cover (in INR) 1.05 Crore 1.05 Crore
Life cover in AED (UAE Dirham) 5 Lakhs 5 Lakhs
Premium Rate of Leading Insurer Rs. 2198 per month Rs. 841 per month

Special Exit Option: In India, NRIs can buy term plans with the special exit option included in the plan. With this option, the NRI can terminate the plan at a specific stage and receive all the premiums paid towards keeping the policy active, at the end of the policy term. This option is especially beneficial for those who are uncertain about their retirement age or who are unsure when their financial dependents will be independent.

GST Waiver: Term insurance for NRIs from an Indian Insurance company offers a GST waiver on term insurance of 18% on the premium amount paid through a Non-residential external (NRE) bank account that supports the freely convertible currency.

Extra discount on Annual mode for NRIs: An NRI customer can claim an additional 5% of discount on the premium amount paid in an annual mode for their protection plans. So, now NRI customers can get a total savings of 23% on the total premium paid.

What are NRO and NRE Accounts For NRIs (Non-Resident Indians)? 

 NRO (Non-Resident Ordinary) and NRE (Non-Resident External) accounts are needed if an NRI wants to buy term life insurance. Let’s discuss about these accounts in detail: 

Non-Resident Ordinary (NRO) Account

NRO bank account allows NRIs to deposit and oversee income earned in India. NRIs can open this account jointly or individually with another NRI or an Indian resident. The interest accrued in an NRO account can be converted to foreign currency and transferred to the NRI residential country without restrictions.

Non-Resident External (NRE) Account 

An NRE Account is a banking option for NRIs, enabling them to deposit foreign currency earned in their country of residence in India. The interest accumulated in NRE accounts is exempt from taxes, and both the principal and interest from this account can be freely repatriated. Joint holding is permissible for this account, allowing two NRI account holders. NRE accounts provide NRIs with the convenience of depositing foreign currency and later withdrawing in Indian rupees.

What Are the Documents Required for Term Insurance Plans for NRI in India?

The documents required to buy NRI Term Insurance by the insurance company can be easily submitted online. The documents are

  • Passport front and back side

  • Employment ID Proof

  • Valid Visa Copy

  • Last entry-exit stamp

  • Last 6 months' bank statements and Last 3 Month salary slips

  • Photo

  • Foreign Address Proof

How To Buy NRI Term Insurance in India 2024?

Here is how Policybazaar term insurance for NRI can be purchased in India 2024:

  • Step 1: Go to the Term Insurance for NRI in India page

  • Step 2: Enter the required information like name, date of birth, contact information, country of residence, and gender, and click on ‘View Plans’

  • Step 3: Fill in your smoking and chewing tobacco habits, educational background, annual income, and occupation type

  • Step 4: Compare and select the most suitable NRI term life insurance

  • Step 5: Proceed to pay

How to Claim Term Insurance for NRI in India 2024?

You can easily claim your NRI term insurance by calling or dropping an email to Policybazaar’s Claim Assistance Team. You will be contacted to submit all the necessary details and documents. On successful verification, the claim will be processed in as low as 4 hours as per the specific insurer’s claim settlement process.

Wrapping It Up!

Buying the best term insurance plan in India for NRIs is a much-required financial product that can offer financial protection for expats and peace of mind in the long run. It can protect your loved ones in your absence by providing death benefits as savings for the future. With Tele-medical examinations, buying NRI term life insurance is now easy and hassle-free. It is advised to read all the Terms and Conditions of the policy before buying NRI term insurance plans in India.


NRI Term Insurance FAQs

  • Q: Is NRI eligible for term insurance?

    Yes, NRIs are eligible to buy term plans in India. Various insurers offer NRI term insurance plans to help secure the financial future of the family of NRIs. The term of these plans can be as short as 6 months and as long as 25 years. NRIs should be at least 18 years old to be eligible to buy term plan. In most cases, you cannot buy term plan if you are above 60/65 years of age.
  • Q: Does the NRI need to be present in India while buying a term insurance plan?

    As an NRI, planning a visit to India solely to buy a term plan is no longer a mandate. Tele-medical or Video medical check-ups have ensured that NRIs can now buy a term plan from their residential country. Simply put, NRI doesn't have to be present in India while buying a term plan. They can easily buy the best term insurance for NRI in India from anywhere in the world with the easy issuance process via video medicals.
  • Q: Can I purchase more than one life term insurance policy?

    Yes, it is possible to buy multiple-term insurance plans for increased protection. With multiple-term plans, the life assured can receive extra benefits by buying additional rider benefits like terminal illness and accidental death cover. So, choosing more than 2 protection plans adequately covers an individual and his/her family’s changing needs such as a child’s education or marriage.
  • Q: What if an NRI does not Pay Term Plan Premium on Time?

    In case an NRI Term Insurance policyholder misses out on the date of premium payment or fails to pay, then a grace period is offered for the same. The life term insurance policy is not abolished if the policyholder pays the pending premium during this period. For a policy with a premium payment frequency of 6 months or 1 year, the grace period is 30 days.
  • Q: Which insurance is best for NRI in India?

    Here is a list of 5 best term insurance plans in India:
    Term Insurance Plans for NRI Entry Age Sum Assured 
    Max Life Smart Secure Plus  18 years to 60 years 1 Crore - 10 Crores
    Tata AIA Sampoorna Raksha Supreme 18 years to 60 years 1 Crore - 20 Crores
    Tata AIA SRS Vitality Protect 18 years to 60 years 1 Crore - 2 Crores
    PNB Mera Term Plan Plus 18 years to 50 years 1 Crore - 1.5 Crores
    HDFC Life Click 2 Protect Super 18 years to 65 years 1 Crore - 2.5 Crores
    ICICI Pru iProtect Smart 18 years to 65 years 1 Crore - 2 Crores
  • Q: Can NRI buy life insurance in India?

    Yes, NRIs, OCIs, and PIOs who live abroad can buy a life insurance policy in India. All PIOs, irrespective of their citizenship status in India, can buy such a plan in their home country to secure themselves and their families. They can get the mandatory medicals cleared via tele or video channels and purchase the most suitable protection for expats online.
  • Q: Can Indian citizens buy term insurance in the USA?

    Yes, Indian citizens living in the USA can also buy term insurance for NRI in India at affordable premiums online. You can compare Policybazaar term insurance for NRI from different insurers and select the best fits your needs.
  • Q: Can I get accidental death cover with protection plans in India?

    Yes, you can get accidental death cover on top of pure risk cover with your life term insurance policy. You can add the accidental death cover rider to your base plan at low level term life insurance rates and pay the premiums along with the base premiums.
  • Q: Who is eligible to buy protection plans in India?

    The following groups of people are eligible to buy life term insurance policy in India:
    NRIs (Non-resident Indians)
    OCIs (Overseas Citizenship of India) cardholders
    PIOs (Persons of Indian Origin)
    Foreign Nationals
  • Q: Who are not eligible to buy term insurance plan?

    The lower age limit is 18 years and the maximum age limit for purchasing term insurance for NRIs is 65 years. Anyone in this age range and who has dependents can buy term insurance for NRIs.
  • Q: Will I still be able to buy NRI Term Insurance if I convert from an NRI to a US Citizen?

    Yes, you will still be able to buy term insurance for NRIs even if you convert from an NRI to a citizen of another country. However, you will need to submit your PIO or OCI card before buying an NRI term insurance in India.
  • Q: How can I get GST Waiver or Refunds on Term insurance for NRI in India?

    You can easily get a GST waiver on the premiums payable by submitting the proof of NRE Account and bank details at the time of purchasing NRI term insurance. In case, you did not opt for the GST waiver, you can still claim a GST refund by submitting the required documents.
  • Q: What are the GST implications for NRI term life insurance plans in India?

    Yes, NRI term life insurance plan purchases incur GST (Goods and Service Tax) at 18% rate, regardless of the type of plan bought.
  • Q: Can NRIs pay using international currency?

    Yes, NRIs can pay premiums for NRI term life insurance using international currency, but conversion rates will be applied as the end payment will be done in INR.
  • Q: Can NRIs designate term insurance nominees outside India?

    Yes, NRIs can designate term insurance nominees outside India.
  • Q: Will the NRI Term Insurance still cover my nominee if he/she changes country?

    Yes, the Term Insurance for NRI in India will still cover your nominee if he/she changes country.
  • Q: What are NRE and NRO accounts for Non Resident Indians?

    NRO is a Non-resident Ordinary bank account that helps NRIs to deposit and manage the income that they earn in India. Whereas NRE is Non-Residental External is a type of bank account wherein foreign currency earned from the residential country can be deposited in India.
  • Q: Do NRIs get long-term capital gains tax?

    Long-term capital gains are taxed for NRIs at 20%. These capital gains tax earned by NRIs are subjected to a TDS of 20 percent. NRIs can also claim exemptions u/s 54, 54EC, and 54F on long-term capital gains.
  • Q: Is LIC allowed for NRI?

    NRIs are allowed to buy insurance on their visit to India, where all the documentations are completed during their India visit.
  • Q: Can OCI buy term insurance in India?

    OCIs, PIOs, and NRIs can make premium payments of term plan through internet banking using Non-Resident External (NRE), Foreign Currency Non-Resident Accounts (FCNR), Non-Resident Ordinary (NRO).

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