Term Insurance for NRI

What is Term Insurance for NRI Plans?

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

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.

Best Term Insurance Plans for NRIs in India 2023

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

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.

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:

1. 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.

2. 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.

3. Policy Term as per your Convenience

   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.

4. 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.

5. 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:

1. 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.

2. 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.

3. 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.

4. 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.

5. 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.

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 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 2023?

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

How to Claim Term Insurance for NRI in India 2023?

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.

FAQ's