For millions of Indians living abroad, providing for family back home is more than a responsibility, it’s an emotional bond. Whether you are working in the Middle East, the US, Europe, or Southeast Asia, one thing remains constant: the desire to secure your family’s financial future. This is exactly where term insurance for NRIs becomes essential. Yet, many NRIs struggle with a simple question: “Can I buy term insurance in India, and is it worth it?” The short answer is: Yes, and absolutely.

Why NRIs Are Increasingly Buying Term Insurance From India?

In recent years, there has been a noticeable rise in NRIs purchasing high-value term plans from Indian insurers. With India’s rising income levels and increasing awareness of financial protection, NRI participation in domestic term life insurance plans has grown consistently. The reasons are simple:

  • Lower premiums compared to many foreign markets
  • Coverage continues even if you change countries
  • Easy digital buying, medical check-ups, and documentation
  • Dependents living in India get quicker and easier claim settlements

What Makes Indian Term Insurance Attractive for NRIs?

For NRIs, buying term insurance from India is not just about cost, it’s about clarity, convenience, and confidence. Many expatriates prefer Indian policies because they offer pure protection, fewer complexities, and reliable claim processes for dependents living back home. Here is why NRIs prefer buying term insurance for NRI plans from India:

  • Lower Premiums Compared to International Markets
    Indian term plans usually come at a far more affordable price than similar covers offered in the US, Europe, or Gulf countries. This matters even more for large covers like ₹1 crore or ₹2 crore.
  • Worldwide Coverage
    Most Indian insurers provide protection no matter where you live, with only a few restricted countries due to conflict or safety risks.
  • Simplified Digital Processes
    NRIs can compare plans, submit documents, complete medical tests (locally or abroad), and purchase a policy entirely online, making the experience smooth even from another country.
  • Easy Claim Handling for Family in India
    Dependents do not have to navigate foreign legal systems or cross-border documentation. Indian insurers settle claims domestically, making the process simpler and faster.
  • Stable, Transparent Regulations
    IRDAI’s strict claim-payment and consumer-protection guidelines give NRIs confidence that their family will receive the promised amount without unnecessary hurdles.

These reasons together make India a dependable and reassuring market for NRI term insurance needs.

Who Can Buy Term Insurance in India as an NRI?

The individuals who are eligible to buy term life insurance for NRI form India are as follows:

  • An Indian citizen living abroad
  • A Person of Indian Origin (PIO)
  • An Overseas Citizen of India (OCI)

Most insurers allow NRIs to purchase policies either during a visit to India or even completely online from abroad, depending on the country of residence.

Documentation Required to Buy Term Life Insurance for NRI

NRIs often worry about excessive paperwork, but the process is streamlined today. Most insurers require:

  • Valid passport
  • Address proof (India or overseas)
  • Age and income documents
  • Overseas employment/resident permit
  • A short medical examination (either abroad or during India visit)

Many insurers now coordinate overseas medical tests through approved international diagnostic partners, making the process smoother.

Additional Riders in Term Life Insurance for NRIs

Riders are powerful add-ons that enhance your base term plan. For NRIs, these are especially important because they offer support during situations where distance, travel, or medical emergencies can complicate things. Here are the most valuable riders to consider:

1. Accidental Death Benefit Rider
  • If death occurs due to an accident, this rider provides an additional payout on top of the base sum assured.
  • It is particularly useful for NRIs who frequently travel for work or live in countries with higher road or occupational risks.
2. Critical Illness Rider
  • This rider pays a lump sum on the diagnosis of serious illnesses such as cancer, heart attack, kidney failure, or stroke.
  • For NRIs living in countries where medical costs are extremely high, this benefit is a crucial financial safety net.
3. Waiver of Premium Rider
  • If you become permanently disabled or are diagnosed with a listed critical illness, all future premiums are waived, yet your policy continues without interruption.
  • This protects your plan even when you cannot work or pay premiums due to health setbacks.
4. Income Benefit Rider
  • Instead of a one-time lump sum, this rider ensures that your family receives a steady monthly income for a chosen number of years.
  • This is very helpful when your dependents rely on your regular remittances to manage household expenses.
5. Terminal Illness Rider
  • If you are diagnosed with a terminal illness, a portion of the sum assured is paid out early.
  • This helps manage medical costs or arrange financial matters for your family without waiting for the final claim.

Together, these riders transform a simple term plan into a stronger, more reliable protection shield, especially important for NRIs living far from family.

Factors NRIs Should Consider Before Buying a ₹1 Crore Term Insurance Plan in India

When evaluating a ₹1 crore term plan from India, NRIs should ensure that the policy fits their long-term financial and family protection goals. Most insurers today allow NRIs to purchase policies entirely through digital processes, making a physical visit to India unnecessary in many cases. Key factors to consider include:

  1. Eligibility and Country of Residence
    Insurers maintain approved country lists and may have specific underwriting guidelines depending on where you live. NRIs from countries with higher risk classifications may be required to submit additional documents or medical tests.
  2. Fully Digital Onboarding
    Most major life insurers now allow end-to-end online onboarding for NRIs.
    This includes:
  • Digital application submission
  • Online medical exams (tele-medical or partner-clinic medicals abroad)
  • Electronic signatures and document upload
  • Premium payment through international cards or NRE/NRO accounts

A physical visit to India is not required unless the insurer’s underwriting specifically requests in-person medical tests.

  1. Currency and Premium Payments
    NRIs can usually pay premiums through:
  • NRE or NRO bank accounts
  • International debit/credit cards
  • Foreign bank remittance routes accepted by the insurer

Choosing the right payment mode ensures smoother policy issuance and avoids conversion charges.

  1. Protection for Global Life
    Ensure the policy clearly states worldwide coverage. Most Indian term plans offer global coverage as long as accurate disclosures about residence, occupation, and travel are made upfront.
  2. Claims Settlement Convenience for Family
    An NRI should choose a plan that allows beneficiaries in India to claim easily.
    Top insurers today support:
  • Digital claim submission
  • Dedicated NRI claim desks
  • Multicurrency documentation support

This ensures the family back home receives the payout quickly and without procedural complexity.

Tax Considerations for NRIs

Under Section 80C of the Income Tax Act, eligible premiums can be claimed as deductions, subject to NRI tax residency rules.
Additionally:

  • Maturity or death benefits are usually tax-exempt under Section 10(10D)
  • Premiums can be paid through NRE/NRO accounts
  • Some insurers allow international credit card payments

NRIs should check their specific DTAA (Double Taxation Avoidance Agreement) provisions if applying from countries with distinct tax frameworks.

Conclusion

For NRIs, term insurance from India isn’t just a financial choice, it’s reassurance across continents. It’s the peace of knowing that no matter where life takes you, your family back home remains protected. Whether you are working in Dubai, Singapore, London, or Toronto, the right term plan keeps your financial commitments intact and your loved ones secure. With more flexible NRI-centric options, digital buying, and transparent comparisons through credible platforms like Policybazaar, securing the right plan has never been easier.