Why is Buying Term Life Insurance Plan More Affordable in India Than Abroad for NRIs?

Accidents and Death can occur anytime anywhere, irrespective of the city, or country you live in. As a result, term insurance needs to be prevalent in all the countries of the world. The Indian term insurers offer term insurance for NRI at affordable premium rates than the other countries. A term plan offers financial protection to their family members. 

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Now, the question arises, does a Non-Resident Indian (NRI) need to be present in India while buying a term plan? No, they don't.

An NRI can easily buy a plan from a foreign country also. But, how do you choose the best term insurance for NRI? What insurance company to choose: Indian or Foreign? What are the pros of buying term plans from Indian Insurers over foreign insurers?

This article will further be going to discuss how Indian Term Insurance companies are far better than foreign insurance companies:

Why are NRI Term Insurance Plans Affordable in India than Abroad?

Here are a few reasons why term plans in India are more affordable for NRIs than other foreign insurers:

  1. A Large number of Insurance companies

    In India, various life insurance companies are registered under IRDAI. So all companies offer different types of term insurance for NRI with high coverage at low premium rates. NRI can buy term plan from any one of them with an easy and quick online process.

    There are several benefits that an Indian Term Insurance company offers for NRIs than International term insurance companies:

    • Term insurance for NRIs offers long-term coverage i.e., up to 85 years, and some plans also provide coverage till 100 years. The plan offers a flexible and comprehensive cover with multiple options to financially protect the policyholder and his/her loved ones.

    • NRIs can opt for a sum assured as low as Rs. 1 Crore and as high as 5 Crores through no medicals

    • To keep plans active even when NRIs are in a foreign country, insurers accept payments through internet banking. An easy hassle-free payment deduction process is also offered through various Indian as well as International cards/accounts.

    • NRIs can also opt for an additional benefit as riders such as critical illness coverage that enhances the coverage of the base plan.

  2. Tele-medical Checkups

    NRIs can now easily opt for plans in India that allow them to schedule a video or telemedical check-up from his/her residential country. At the start of Corona, the underwriting rules were stiffened and policy-buyers were required to go through a physical medical test. Now, with the relaxed rules, NRIs can receive large covers with telemedical facilities to make term protection more feasible for Non-Resident Indians around the world.

  3. Claim Settlement Ratio

    The claim settlement ratio (CSR) of Indian Insurers is the percentage of claims that an insurer settles annually out of total claims. It indicates the credibility and reliability of an insurance company. A good claim settlement ratio of a term insurer should be above 95%.

    So, if the CSR of an insurer ranges between 95-100%, you need not think twice before purchasing a term plan. Almost all the Indian term insurers have a good CSR such as Max’s CSR is 99.35%, Tata AIA CSR is 98.02%, and PNB’s CSR is 98.17%.

  4. Term Insurance Premium Rates

    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

    **To calculate the premium amount of your chosen term plan, you can use a term insurance calculator.

    As per the above comparison table, Leading insurance companies abroad (UAE) cost you more than Indian Insurance companies. Indian Term plans are around 50% cheaper than foreign countries.

At a Glance


(Per Month)


(Per Month)


(Per Month)


(Per Month)


(Per Month)


₹2,198 (Per Month)
Foreign Country
₹841 (Per Month)
Premium Rates of Leading Term Insurers(in ₹)
Leading Term Insurers

Annual Premium for 1.05 term insurance across countries for a 30-year-old, non-smoking male with no medical conditions over a term of 25 years

As per the above comparison table, Leading insurance companies abroad (UAE) cost you more than Indian Insurance companies. Indian Term plans are around 50% cheaper than foreign countries.

Wrapping It Up!

So, if you are planning to relocate to a foreign country or have settled in a foreign country and are planning to purchase a life insurance plan, you should think about purchasing term insurance from an Indian Country while residing abroad. In such cases check for term plans online, these plans are rigorously underwritten and are low priced along with some discounts. Thus, it helps fulfill the financial goals of you and your family members.

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