Why Should NRIs Buy Term Life Insurance In India?

Note: Know more about what is term insurance first before reading this article.

Why Should an NRI Buy a Term Life Insurance in India? 

An NRI should buy term life insurance for expats to get pure risk cover for their family in the event of their unfortunate death. This is because NRIs can secure a large life cover at affordable premiums, which are up to 50-60% more affordable than international term life insurance plans. Not only that, buying term insurance for NRIs in India is now much easier as you can clear your medicals by scheduling a session on video or tele channels and providing comprehensive cover against terminal illness and accidental death cover. These protection plans provide the death benefit on the death of the policyholder, which can help them pay off their loans, rent, and child’s education fees. 

What are the Benefits of Buying Term Insurance for NRIs in India 2025?

Here is a list of ways in which buying NRI term insurance from India can benefit you:

• Financial Support for your family in India – Term insurance for NRI can help the individual get pure risk cover in the unfortunate event of his/her absence. It is a protection plan that provides the sum assured on the death of the nominee of the policy, which they can use to take care of their financial obligations like rent, child’s fees, and remaining loans and debts.

• Cost-effectiveness – NRIs can get protection for expats for a fixed tenure at level term life insurance rates. Protection plans in India are up to 50-60% more affordable than international term life insurance plans. These premium rates depend on a variety of factors, including your age and current country of residence. You can check out and compare term plans to find the term life insurance for NRI best suited for you.

• Long Term Coverage – With a life term insurance policy, NRIs can get pure risk cover for a long policy tenure (till 99/100 years of age). During this term, in case of an eventuality covered under the plan, the insurer will payout the benefit amount to the nominee of the policy.

• Global Coverage - Most Indian term insurance plans offer worldwide coverage. The nominee can get the claim amount irrespective of where the policyholder’s death occurs, which provides peace of mind for NRIs living or travelling globally.

• Tele/Video Medical – Indian insurers now allow NRIs to purchase their suitable term life insurance for expats by conducting tele or video medicals online. This way, the NRIs won’t have to visit India if they want to buy term insurance plan from Indian insurers.

• Easy and online buying process – The whole process, from application to issuing policy, can often be completed online from the residential country. Various insurance companies facilitate medical underwriting through tele-video consultations, eliminating the need for NRIs to travel to India for a physical medical test.

• Annual Discounts – You can also avail of a 5% additional discount on the NRI term insurance premium rates by opting to pay the premiums in an annual mode.

• Terminal Illness and Accidental Death Cover – These protection plans provide coverage against terminal illness and accidental death cover in exchange for nominal premiums payable along with the base premium. You can include these riders in the base plan as per the policy’s T&Cs.

• Claim Settlement Ratio – In India, the IRDAI releases its CSR values each year, which can help the NRIs make an informed decision. You can easily check the CSR of different companies and buy term plans from an insurer with a high CSR ratio of over 95%. This ensures that the company is capable of settling your family’s potential claim in the future.

• Simplified Claim Settlement Process – If the nominee lives in India, the claim process is largely easier as the family can visit the insurance company’s office much more easily in India instead of having to visit the company’s office in your current location.

• Tax Benefits – All the premium amounts are tax-deductible for NRIs under Section 80C. The received death benefit amount is also exempted under section 10(10D), subjecting to the terms and conditions U/S 10(10D) of the Income Tax Act, 1961. 

• Payout On-time – In case of the policyholder’s death during the policy term, the nominee/beneficiary can get their claims settled quickly and smoothly, provided the nominee completes all their claim formalities. As per IRDAI, every company must pay all the claims that were made 3 years after the commencement date of the policy. 

• Flexibility and customization – Term life insurance for NRIs provides policyholders with the flexibility to select the policy term, sum assured, premium payment terms, and premium rates as per the suitable needs of the individual. 

• Convenient Premium Payments - NRIs can easily pay premium amounts online using their NRE, NRO, and FCNR bank accounts through different methods such as international credit cards, internet banking, or SWIFT transfers.

Why Are NRIs Choosing Indian Term Insurance Over Local Plans?  

Over the past few years, an increasing number of NRIs have been opting for Indian term insurance plans instead of those available in their country of residence. This growing preference is largely due to the reliability, global recognition, and overall value that Indian insurers offer. Beyond affordability, these plans combine comprehensive protection with ease of management, making them a practical choice for long-term financial security.

• Strong Regulatory Framework: The Indian insurance market is governed by the IRDAI, which ensures strict compliance, financial transparency, and protection of policyholder interests. This gives NRIs confidence that their investments and claims are secure.

• Global Coverage: Many Indian term insurance plans extend worldwide protection, ensuring that an NRI’s family receives the claim benefit regardless of where the life assured resides or passes away.

• Seamless Digital Access: NRIs can easily manage their policies through online portals, right from policy purchase and premium payments to tracking policy details, without needing to visit India physically.

• Currency Advantage: Paying premiums in Indian Rupees often results in more favorable exchange rates for NRIs earning in foreign currency, making it a financially prudent decision over time.

• Stronger Connection to India: For many NRIs, purchasing term insurance in India aligns with their intent to maintain financial ties and ensure their family back home is protected under the legal and financial systems they trust.

Documents Required to Buy an NRI Term Insurance Plan

Here is a list of documents required to buy term insurance for NRIs in India:

• Employment ID proof

• Valid visa copy

• Last entry exit stamp

• Last 6 month’s bank statement

• Last 3 month’s salary slips

• Foreign address proof

• Photographs 

• Passport copy front and back

How to Buy Term Life Insurance for NRIs in India Online?

You can buy term plan for NRIs in India online by following the steps below:

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

• Step 2: Enter your name, gender, DOB, contact number, and select the country of residence

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

• Step 4: Select the most suitable plan and proceed to pay

Wrapping It Up! 

An NRI should buy a term life insurance policy to secure his/her loved one’s future objectives in case of his/her demise during the policy tenure. The premium available on insurance plans is variable, i.e. depending on the terms and conditions, features, and benefits of the policy. It also depends on the frequency of premium payment terms, health conditions, age, etc. The duration of the plan also varies based on the insurance products offered by different insurance companies in India.

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