For Non-Resident Indians (NRIs), building a life overseas doesn’t lessen the bond with family back home. Whether you’re living in the UAE, the US, the UK, or anywhere else, ensuring the financial security of your loved ones in India remains a top priority. That’s where term insurance comes in—a reliable, affordable way to provide long-term financial protection, no matter where life takes you.
This guide will help you understand why term insurance is essential for NRIs and which plans offer the best features in 2025.
🛡️ What Is Term Insurance for NRIs?
Term insurance is a life insurance plan that provides coverage for a specific term (e.g., 10, 20, or 40 years). If the policyholder passes away during this period, a lump sum is paid to the nominee. For NRIs, many Indian insurance companies offer special plans that provide global coverage and flexible premium payment options.
The benefits? You get peace of mind knowing that your family’s lifestyle, education goals, and home expenses will be taken care of—even in your absence.
✅ Why Should NRIs Buy Term Insurance from India?
Here’s why purchasing term insurance from an Indian insurer makes sense for NRIs:
- Lower Premiums: Term plans in India are typically more affordable than those in many foreign countries.
- INR Payout Advantage: Your beneficiaries can receive the death benefit in Indian rupees—useful if they live in India.
- Global Coverage: Most plans offer worldwide protection, so you’re covered whether you live in Dubai or Toronto.
- Flexible Payment Modes: Premiums can be paid via NRE/NRO bank accounts or international cards.
- GST Exemption: Payments made from NRE accounts are exempt from 18% GST on premiums.
🏆 Top Term Insurance Plans for NRIs in 2025
Here are some of the best term insurance plans for NRIs, based on flexibility, coverage, and add-on benefits:
1. HDFC Life Click 2 Protect Super
- Entry age: 18–65 years
- Maximum coverage age: Up to 85 years
- Global claim settlement
- Critical illness and waiver of premium riders available
- Flexible payout options (lump sum, monthly income, or both)
2. ICICI Pru iProtect Smart
- Comprehensive cover with add-ons like terminal illness and accidental death
- High claim settlement ratio
- Available to NRIs with remote onboarding
- Tax-saving under Section 80C and 10(10D)
3. Tata AIA Sampoorna Raksha Supreme
- Coverage up to age 100
- Discounts for non-smokers and female policyholders
- Return of Premium (ROP) option
- Available for purchase from many countries via online process
4. Max Life Smart Secure Plus Plan
- Offers income benefit and ROP features
- Critical illness rider with 64+ conditions covered
- Simple documentation for NRIs
- Strong digital support and claim track record
📑 Eligibility for NRIs
To buy term insurance in India as an NRI, you must:
- Be an Indian citizen living abroad (including PIOs and OCIs)
- Be between 18–65 years of age
- Submit documents such as:
- Passport copy
- Valid visa
- Proof of residence abroad
- Income documents
- In some cases, you may need to complete a tele-medical exam or visit a medical center
💡 Key Features to Look For
When comparing term insurance policies as an NRI, focus on:
| Feature | Importance |
|---|---|
| Worldwide Coverage | Ensures your claim is valid even if death occurs overseas |
| Flexible Payout Options | Choose lump sum or staggered income to support your family’s long-term needs |
| Easy Claim Settlement | Choose an insurer with a high claim settlement ratio and global claims support |
| Rider Options | Look for critical illness, accidental death, and disability riders |
| Online Purchase | Digital onboarding and remote document submission make buying easy from abroad |
📈 How to Buy Term Insurance in India as an NRI
- Research: Compare plans from top insurers using online tools.
- Choose a Plan: Select one based on age, coverage amount, and duration.
- Submit Documents: Share your passport, visa, residence proof, and income.
- Medical Test: Either online consultation or medical checkup via approved clinic.
- Make Payment: Use NRE/NRO account or international debit/credit card.
- Policy Issuance: Once approved, your digital policy is emailed for easy access.
🧾 Tax Benefits for NRIs
While tax rules can vary depending on your country of residence, here are the key benefits under Indian tax laws:
- Section 80C: Premiums paid can be claimed for deduction (subject to conditions)
- Section 10(10D): Maturity/death benefits are tax-exempt in India
Always consult a tax advisor for country-specific benefits.
🧠 Final Thoughts
Buying term insurance in India as an NRI is a wise move—both financially and emotionally. It’s cost-effective, easy to set up remotely, and gives your family the financial protection they deserve. Whether you’re building a life abroad or planning to return home someday, a robust term plan ensures your legacy is secure.
Life is uncertain, but your family’s future doesn’t have to be. Choose the right term insurance today—because peace of mind knows no borders.