By Naman Saini
Living away from India can be exciting, but it also comes with responsibilities. But many NRIs often wonder, Is it even possible to buy one from abroad? The answer is yes, it’s easy and totally possible!
In this guide, we’ll explain how you can buy term insurance for an NRI in India without any confusion. You’ll learn about the process, the benefits, and a few smart tips to help you pick the right plan. Let’s make this simple for you.
A term insurance plan is one of the simplest types of life insurance. You pay a fixed amount called the premium every year (or month), and in return, the insurance company promises to pay a large sum of money (called the sum assured) to your family if something happens to you during the policy term.
Think of it as a safety net. It gives your family financial support when they might need it the most. The best part? It is affordable and gives high coverage.
For example, with just a few thousand rupees per month, you can get coverage of ₹1 crore or even more. That’s why term insurance is very popular among NRIs who want to protect their family in India.
Yes, absolutely! NRIs can easily buy term insurance for NRI from Indian insurance companies. Most leading insurers in India offer special plans made for NRIs. These plans provide global coverage, which means even if you are living abroad, your policy remains valid and active.
Thanks to online processes, buying a policy has become simple and fast. You don’t even need to visit India in most cases. You can apply online, submit your documents digitally, and even complete your medical check-up abroad.
Here are some strong reasons why many NRIs prefer buying a term insurance policy from India:
Affordable Premiums – Term insurance in India is often cheaper compared to plans available abroad. You get large coverage at a lower cost.
Family in India – If your family lives in India, buying a policy from an Indian insurer makes claim settlements and payouts easier.
Trusted Companies – India has many reputable insurance companies with strong claim settlement records and global presence.
Rupee-Based Cover – The sum assured is paid in Indian Rupees, which is convenient for families living in India.
Simple Online Process – Most companies allow NRIs to complete everything online from applying to paying premiums.
Buying a term insurance plan in India while living abroad is easier than ever before. Let’s go through the step-by-step process:
Most Indian insurers allow NRIs, Persons of Indian Origin (PIOs), and Overseas Citizens of India (OCIs) to buy term insurance. You just need a valid Indian passport and proof of residence abroad.
Don’t rush. Compare plans from trusted companies like LIC, HDFC Life, ICICI Prudential, Max Life, and Tata AIA. Look for:
Claim settlement ratio
Premium cost
Coverage options
Extra benefits (like accidental death or critical illness cover)
Decide how much coverage your family might need. The general rule is to take a cover about 10–15 times your annual income. For example, if you earn ₹20 lakh per year, aim for at least ₹2 crore coverage.
You can visit the insurer’s website and fill out the application form. Most insurers now have special online portals for NRIs. You’ll need to provide basic details like age, country of residence, income, and nominee details.
Medical tests are mandatory for most policies. You can either:
Take the test when you visit India, or
Complete it abroad at a partnered medical center.
Many insurers have tie-ups with clinics in foreign countries for NRIs.
You’ll be asked to upload or email copies of documents such as:
Passport (with visa page)
Proof of address abroad
Income proof (like salary slips or tax returns)
PAN card or Aadhaar (if available)
You can pay your premium using international debit/credit cards, net banking, or NRE/NRO bank accounts. It’s safe and convenient.
Once all documents and tests are done, the insurer will approve your policy and send the soft copy by email. The entire process may take a few days to a couple of weeks.
While buying term insurance from India is simple, it’s important to keep a few things in mind:
Country of Residence Matters – Some countries may be on the insurer’s restricted list due to risk or regulations. Always check if your country is eligible before applying.
Premium Payment Options – Use your NRE or NRO account for smooth transactions and easy tracking.
Claim Process – The claim can be made by your nominee in India. It’s best to inform your family about the insurer, policy details, and claim steps.
Tax Benefits – You can claim tax benefits under Section 80C of the Indian Income Tax Act if you have taxable income in India.
Stay Updated – Always update your contact details, address, and nominee information if they change.
Whether you are an NRI or living in India, the best time to buy term insurance is as early as possible. Here’s why:
Lower Premiums: The younger you are, the cheaper your premium will be.
Longer Coverage: You can choose a long-term plan that protects your family for decades.
Peace of Mind: Knowing your family’s future is safe brings emotional comfort and confidence.
Let’s say Rohan, an NRI living in Dubai, earns ₹30 lakh a year. He buys a ₹3 crore term insurance plan from an Indian company while living abroad. He completes the medical test in Dubai, uploads his documents, and pays the premium online. His policy gets approved in 10 days.
Now, if anything unfortunate happens to Rohan during the policy period, his family in India will receive ₹3 crore in Indian Rupees. It ensures they stay financially secure, even in his absence. That’s how simple and powerful a term insurance plan can be for NRIs.
Here are some popular companies known for providing smooth services to NRIs:
LIC of India
HDFC Life
ICICI Prudential Life
Max Life Insurance
Tata AIA Life Insurance
Bajaj Allianz Life Insurance
These insurers have dedicated NRI desks, online portals, and claim support for families in India.
Life is full of surprises, especially when you live far from home. But one thing you can control is your family’s financial safety. Buying a term insurance plan in India is a smart and easy way for NRIs to ensure peace of mind.
So, if you’re an NRI looking to secure your family’s future, don’t wait. Explore your options, compare plans, and buy term insurance for NRI today. It’s simple, affordable, and one of the most thoughtful gifts you can give your family. [NG-FA]
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