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Coverage from
₹25 lakh onwards
Adjust your coverage
when you need
Term insurance for NRIs is a life insurance plan designed for Non-Resident Indians who want to financially protect their families in India or abroad. It provides a death benefit to the nominee if the policyholder passes away during the policy term. These plans can help dependents manage ongoing expenses, outstanding liabilities, and long-term financial needs in the absence of the policyholder.
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What is an NRI Term Insurance Plan?Understanding how Term Insurance works For NRIsTypes of Term Insurance for NRIsHow to Buy Term Insurance For NRIs?Features of NRI Term plans2 Key Factors to Consider Buying an NRI Term InsuranceRiders Available for NRI Term Insurance Choosing the Right Term Insurance for NRIs in IndiaFactors Affecting Term Insurance Premiums for NRIsDocuments Required for NRIs to Purchase Term InsuranceIs Term Insurance in India better for NRIs than international plans?Eligibility to Buy Term Insurance for NRIFrequently Asked QuestionsDisclaimerA term insurance plan is a contract between an insurer and a non-resident Indian who is the policyholder. In exchange for a premium, the insurer pays a sum assured to the nominees upon the policyholder’s death.
An NRI (Non-Resident Indian) is an Indian citizen living abroad for work, study, or business. Generally, a person is classified as an NRI if they stay in India for less than 182 days during a financial year. This status is important because it affects how one is taxed and opens up specific banking, investment, and insurance options designed for Indians living overseas.
An Overseas Citizen of India (OCI) is a foreign citizen of Indian origin who has a lifelong visa to live and work in India. Although OCIs are not Indian citizens and cannot vote, they can access several economic and educational benefits in India.
OCIs can also buy term insurance plans from Indian insurers, with flexible options for medical tests and claim payouts through foreign currency or NRE/NRO accounts.
Term insurance for NRIs also works like regular insurance.
The policyholder must pay a fixed premium for assured coverage for the selected period. If the policyholder dies in this period, the nominee gets the sum assured amount.
NRIs also have the option of Return of Premium (ROP). This option allows them to recover the total premium payments when the policy matures if the policyholder survives the policy period. They can also supplement the policy with add-ons for improved coverage.
Term life insurance for NRIs typically has similar policies available to residents. Four types of term insurance policies:
A word used to describe a provision in many term life insurance contracts that permits renewal without requiring fresh underwriting is "renewable term." With a renewable term policy, the insured's health can deteriorate, but the renewed premiums will represent their advanced age.
As long as the policyholder continues to pay the insurance payment, convertible insurance enables the policy owner to convert a term policy that only covers the insured individual for a certain number of years into an endless policy.
A term life policy with a decreasing death benefit is known as decreasing term life insurance. It's advantageous if you anticipate that your loved ones will require less financial assistance over time.
With adjustable life insurance, you can modify the policy's terms after enrolling, such as the premium amount and the death benefit. Known also as universal life insurance, adjustable life policies have a "cash value" account, a savings component that accrues interest, that you can use while living.
For the protection of their family, an NRI can purchase a pure term plan, which provides comprehensive life cover protection, a death payout, and no maturity advantages. Buying term insurance is as easy for an NRI as for an Indian resident in India.
NRIs can apply for term insurance in two ways:
Here are some interesting features of NRI Term Insurance.
The following factors should be considered before buying an NRI Term Insurance plan.
Policy tenure: NRIs must put a lot of thought into the policy duration when buying term insurance. It can be as low as six months and extend to 40 years. Experts advise having coverage for at least until you turn 65 years old. Usually, your age should fall between 18 to 55 or 65 years, depending on the insurance company's requirements.
Policy coverage: You must also decide the policy amount wisely for the insurance policy. It is vital to make an informed decision because the amount you choose must be adequate for your family in case they lose you. Consider factors like debts, inflation, education expenses, and significant events like marriage or childbirth to choose the appropriate amount and type of policy. Choosing an escalated policy amount will secure your family against rising inflation. You can also go for a policy that automatically increases the sum insured by a specific rate every few years.
Some common riders that are available for term insurance are:
It improves your loved ones' financial security by guaranteeing an additional amount in the event of an accident-related death.
This helps compensate for medical costs and lost wages while recovering by providing a lump sum payment upon diagnosis of certain serious diseases.
This rider guarantees that future premium payments will be waived in case of accidental disability, job loss, etc. The policy remains active for the rest of its term. This ensures continued coverage for the insured and their beneficiaries without the burden of premium payments.
When a terminal disease is diagnosed, the Terminal Disease Rider accelerates a portion of the death benefit, enabling you to pay for medical expenditures and fulfil your final wishes.
One of the most important things you can do as an NRI in terms of financial management is to get yourself a term insurance policy. Term insurance is a crucial component of your emergency plan that provides financial stability for your family. As a non-resident Indian, purchasing a term plan is comparable to buying the plan as a resident. However, you do have further options to secure the cover. There are a few things to think about while choosing and purchasing term life insurance:
Verify the insurer's claim settlement ratio to ensure a greater chance of hassle-free claim settlement and a sign of dependability.
Choose insurers with a strong internet presence for simple access to customer service, convenient policy management, and premium payments.
Examine the insurer's claim settlement procedure to see if it is efficient, clear, and trouble-free to ensure a more seamless claims process.
Assess the insurance company's persistency ratio to determine policy retention rates and customer satisfaction, as these metrics indicate the business's reliability.
To fit your convenience and financial choices, look for insurers that offer various payment options, including annual, monthly, quarterly, or half-yearly premiums.
NRIs need the following documents to apply for Term Insurance.
NRIs should buy Term Insurance in India rather than abroad for the following reasons.
The eligibility requirements for term insurance as an NRI (non-resident Indian) vary based on the insurance company and its policy. However, here are some standard eligibility criteria.
You must typically be between 18 and 65 to be eligible as an NRI.
You must have a valid NRI status and reside in a country on the insurance company's approved list of countries.
You must provide information about your medical history, including any pre-existing conditions and medications you take.
Some insurance companies may restrict specific work profiles, such as those considered high-risk.
You will need to make premium payments in the currency specified by the insurance company, which may require you to have a bank account.
You must provide certain documents, such as your passport, visa, and proof of residency, as well as any additional documentation required by the insurance company.
It's important to note that the eligibility requirements vary widely between insurance providers, so it's always a good idea to check with the specific provider to determine their needs for purchasing Term Insurance as an NRI.
Below are some of the frequently asked questions on Term Insurance Plan for NRI
Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on industry experience and several secondary sources on the internet, and is subject to changes.
Written by
Neviya Laishram
Senior Editor
A senior editor with years of expertise, she fine-tunes content that connects, converts, and builds trust. She transforms heavy insurance concepts into clear, aha-moment reads. Writing is her passion, and thinking ahead is second nature. When not wrangling words, she’s crushing game levels because every challenge is a puzzle waiting to be solved.
Reviewed by
Vaibhav Kumar Kaushik
Senior Director – Life Insurance Strategy
Senior Director – Life Insurance Strategy at Acko, I drive customer-centric, digitally led strategies that shape the future of Life insurance. With expertise in new business development, D2C growth, and investment management, I’ve helped build and scale Acko’s Term Life offerings by aligning customer insights with innovative product strategy to fuel sustainable growth.
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