NRI Term insurance is important for all individuals worldwide, irrespective of their location. Whether you live in India or abroad, ensuring the well-being of your loved ones in your absence is paramount. Term insurance for NRIs (Non Resident Indians) is mainly important as living in a foreign land 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.Read more
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Term insurance for NRIs (Non Resident Indians) refers to life insurance policies designed to meet the unique needs of NRIs, OCI cardholders or PIOs and their families. These plans offer financial protection and a death benefit in case of a policyholder’s death, regardless of their residence abroad. NRIs can buy these term plans from Indian insurers, ensuring their loved ones receive financial security and support even outside India.
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
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.
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.
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.
Let us look at some of the features of this protection plan for NRI in India:
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.
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.
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.
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.
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.
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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.
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.
Here is a list of some of the benefits of buying the best term insurance for NRI in India:
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.
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.
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.
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.
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.
Here is a list of the additional benefits of buying term insurance for NRI in India.
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.
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.
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.
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.
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.
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
Foreign Address Proof
Here is how Policybazaar term insurance for NRI can be purchased in India 2023:
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
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.
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.
Term Insurance Plans for NRI
18 years to 60 years
1 Crore - 10 Crores
18 years to 60 years
1 Crore - 20 Crores
18 years to 60 years
1 Crore - 2 Crores
18 years to 50 years
1 Crore - 1.5 Crores
18 years to 65 years
1 Crore - 2.5 Crores
18 years to 65 years
1 Crore - 2 Crores