How NRIs Can Use Term Insurance to Protect Their Indian Property for Heirs?

For many Non-Resident Indians (NRIs), owning property in India is both an emotional and financial investment. Whether it's a house inherited from parents, a purchased flat, or a piece of land meant as a future asset, ensuring its safe transfer to your heirs is critical. One of the most effective ways to do this is through term insurance. Let’s understand how NRIs can use term insurance to protect their Indian property for their heirs and ensure a smooth legacy transfer.

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Why NRIs Need to Protect Their Indian Property?

Cross-border Legal Complexities: Property inheritance laws in India can be complicated, especially when legal heirs are abroad.
Loan Liabilities: If the property is under a home loan, the financial burden may fall on your heirs in your absence.
Estate Planning Gaps: Many NRIs do not consider estate planning or nominate beneficiaries, increasing the risk of disputes.
Inheritance Delays: Transferring property can be time-consuming and costly without proper financial planning.
Emotional Value: For many, the property in India is not just an investment but a family legacy worth preserving.

Term Plans

₹1
Crore

Life Cover

@ Starting from ₹ 13/day⁺

₹50
LAKH

Life Cover

@ Starting from ₹ 8/day⁺

₹75
LAKH

Life Cover

@ Starting from ₹ 12/day⁺

How NRI Term Insurance Acts as a Safety Net for Your Property?

A Term insurance plans is a financial shield for your Indian assets and then by aligning your NRI term insurance with your property investment, you can ensure that the death benefit is specifically used to cover these liabilities.

Here is a process:

Step 1: Buy NRI term plan with an assured sum equal to or greater than your home loan amount.

Step 2: Your nominee receives the death benefit if an unfortunate event occurs during the policy term.

Step 3: Your family can use the lump sum amount to pay off the entire outstanding loan, freeing the property from any type of debt.

How Does Term Insurance Support Property Transfer to Heirs?

Pays Off Outstanding Loans: A term insurance payout can cover any home loan balance so heirs receive the property debt-free.
Reduces Financial Stress: It prevents heirs from having to sell the property to settle liabilities.
Simplifies Inheritance: With financial protection in place, legal processes like mutation and transfer become smoother.
Supports Property Maintenance: Term insurance payout can be used for upkeep, taxes, or renovation until legal ownership is transferred.
Enables Equal Distribution: If you have multiple heirs, term insurance gives liquidity to fairly divide the estate.

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Why NRIs Prefer Term Insurance for Property Protection?

Here is a list of reasons why NRIs prefer term insurance for property protection:

Affordable Premiums: Term insurance plans have relatively lower premiums compared to international term plans, and the value of the property.
Global Coverage: Most Indian insurers offer term life insurance for NRI that provides cover globally.
Simple Payout Structure: Heirs receive the full sum assured upon the policyholder’s death.
Customisable Riders: Additional benefits like accidental death or critical illness can provide additional financial security.
Estate Liquidity Support: Term insurance ensures quick access to funds, helping heirs manage property transfer costs, taxes, and legal fees without financial strain.

How to Choose the Right Term Insurance for NRI Property Owners?

Check Eligibility by Country: Ensure the insurer covers NRIs from your resident country.
Opt for Adequate Cover: Calculate the property value and associated liabilities to determine the sum assured.
Add Relevant Riders: Consider critical illness or waiver of premium riders to enhance protection.
Look for Claim Settlement Support: Choose insurers with a strong NRI claim assistance program.
Compare Insurers: Check for insurance companies with a high claim settlement ratio, as this indicates their reliability in paying out claims.
Review Premium Payment Options: Go for flexible options like limited pay or single premium, especially if you want to pay upfront.

How to Use a Term Insurance Calculator for NRI Needs?

Input Property-Related Values: Use the term insurance calculator to enter your loan amount or estimated estate value.
Factor in Age and Health: These influence your premium and coverage duration.
Compare Plans Easily: Calculators help you compare multiple insurers side by side.
Estimate Long-Term Costs: See the impact of paying premiums for 10, 20, or 30 years.
Plan for Tax Efficiency: Understand premium payments and death benefits from a tax planning perspective.

Things NRIs Must Consider Before Buying Term Insurance

Factor	What to Check
Eligibility	Whether your country of residence is covered
Medical tests	Check if medical exams are needed in India or abroad
Payment modes	Check if premium payments can be made from NRE/NRO accounts
Claim settlement process	Ease of nomination and claim support for overseas heirs
Documentation	PAN card, passport, proof of residence, and income documents

Wrapping it Up!

For NRIs, Indian real estate often represents not just financial investment but deep emotional and family roots. However, without proper planning, your property can become a financial burden for your heirs due to outstanding loans, legal complexities, or unexpected liabilities. Term insurance offers a simple yet powerful solution. By providing a tax-free payout, it ensures your loved ones can retain ownership without disruption.

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What is Term Life Insurance

˜The insurers/plans mentioned are arranged in order of highest to lowest Sum Assured(SA) offered by Policybazaar’s insurer partners offering term insurance plans on our platform, as per ‘first year premium of life insurers as at 31.03.2025 report’ published by IRDAI.

Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. For complete list of insurers in India refer to the IRDAI website www.irdai.gov.in

Rs. 400/month is starting price for a 1 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

Rs. 400/month (Rs.13/day) is starting price for a 1 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 230 is starting price for a 50 lakhs term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

+Rs. 8/day is starting price for a 50 lakhs term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

+Rs. 12/day is starting price for a 75 lakhs term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

+Rs. 497/month is starting price for a 1.5 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 487/month is starting price for a 2 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 626/month is starting price for a 3 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 905/month is starting price for a 5 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 1,267/month is starting price for a 7 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

*The full refund of premium is available on availing the one-time option of refund of premium. Total premium paid for policy (paid for add-ons) will be the special exit value, payable on availing the one-time option of refund of premium if you wish to completely exit the policy.

+Rs. 447/month is starting price for a 1 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs.679/month is starting price for a 2 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 910/month is starting price for a 3 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 1,374/month is starting price for a 5 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 1,924month is starting price for a 7 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

Women

+Rs. 400/month is Starting price for a 1 crore term life insurance for an 18 year-old Female, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

Rs. 461/month is the starting price for a 1 crore term life insurance for an 24 year-old female, non-smoker, with no pre-existing diseases, cover upto 54 years of age.

1,642/month is the starting price for a 1 crore term life insurance for an 44 year-old female, non-smoker, with no pre-existing diseases, cover upto 74 years of age.

Prices offered by the insurer are as per the approved insurance plans | #All savings and online discounts are provided by insurers as per IRDAI approved insurance plans | Standard Terms and Conditions Apply | **Tax Benefits are subject to changes in tax laws.| Policybazaar Insurance Brokers Private Limited

We will respond in the first instance within 30 minutes of the customers contacting us. 30-minute claim support service is for the purpose of giving reasonable assistance to the policyholder in pursuance of the claim. Settlement of claim (including cashless claim) is the responsibility of the insurer as per policy terms and conditions. The 30-minute claim support is subject to our operations not being impacted by a system failure or force majeure event or for reasons beyond our control. For further details, 24x7 Claims Support Helpline can be reached out at 1800-258-5881

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Policybazaar Insurance Brokers Private Limited | CIN: U74999HR2014PTC053454 | Registered Office - Plot No.119, Sector - 44, Gurgaon, Haryana – 122001 | Registration No. 742, Valid till 09/06/2027, License category- Composite Broker Visitors are hereby informed that their information submitted on the website may be shared with insurers. Product information is authentic and solely based on the information received from the insurers.

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