Getting NRI Term Insurance in 2025

Let’s be honest: If you're an NRI, buying term insurance in India can feel more confusing than comforting. You’re juggling life in another country, unsure if the paperwork will be a nightmare, and constantly wondering—will my family even get the money if something happens to me abroad? It’s a lot to think about, and the whole process might seem like more hassle than it’s worth.

But here’s the truth — term insurance in India is 100% accessible to NRIs, and in many cases, it’s a smart financial decision, too. For one, premiums are significantly lower compared to what you’d pay in countries like the US or UK. Plus, you get to pay INR, which can be tax-efficient. And if your family is based in India, a local policy makes the claim process far smoother for them. So not only is it possible, but it can also be the more practical choice.

In this blog, we’ll break it all down — from the best NRI term plans in 2025 to the benefits, claim process, and even the real-world issues NRIs may face while buying a term plan in India. Let’s dive in.

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What is NRI Term Insurance?

NRI Term Insurance is a life cover tailored for Non-Resident Indians (NRIs), Overseas Citizens of India (OCIs), and Persons of Indian Origin (PIOs). While it offers the same core benefits as regular plans—like a fixed sum assured paid to nominees in case of the policyholder’s death—Term Insurance for NRIs is designed with added flexibility. These include easier onboarding, overseas medicals, and premium payment options suited for global lifestyles, making it a reliable form of NRI Life Insurance.

Why Should NRIs Buy Term Insurance in India?

If you're living abroad but still financially connected to India, getting your term plan from an Indian insurer just makes sense. Here’s why:

• Lower Premium Rates

Term insurance in India is significantly cheaper compared to what most NRIs would pay in countries like the US, EU, or the UAE. Thanks to lower mortality rates in India, relatively inexpensive Indian currency rates, and overall reinsurance and servicing cost structures being on the lower side, the premiums are way more affordable.

• High Claim Settlement Ratios

Indian insurers have some very high claim settlement ratios, with top players boasting 97%+ rates. This gives your family greater confidence that their claim will be honored without hassle.

• Tax Benefits Under Indian Laws

You can claim deductions under Section 80C for premiums (if you have Indian taxable income) and exemptions under Section 10(10D) for the death benefit. It’s a smart way to save while staying protected.

• Payout in INR for Dependents in India

Your nominee/claimant can be an NRI, an Indian resident, or a foreigner as long as they have an Indian bank account. However, if your nominee is in India, having the sum assured paid in INR makes things simple. They won’t have to deal with forex fluctuations, delays, or currency conversions during an already tough time.

• GST Refunds for NRIs

If you’re buying the policy and paying the premiums in convertible foreign exchange through an NRE (Non-Resident External)  account, you may be eligible for a GST refund on your premiums—a meaningful bonus that brings down your overall cost as current GST rates are set at 18%.

Benefits of Term Insurance for NRIs

When you're living abroad, securing your family's future back home becomes even more important — and that’s exactly where NRI Term Insurance steps in with powerful, globally relevant benefits tailored just for NRIs.

• Financial Protection for Family

NRI Term Insurance ensures your family stays financially secure even in your absence. It helps cover ongoing expenses, liabilities, and future goals like education or marriage.

• Global Coverage for Death

No matter where you’re living or traveling, NRI Life Insurance covers death anywhere in the world—so your policy stays active and relevant, no matter the geography.

• Affordable, Long-Term Security

Compared to international markets, Indian insurers offer long-term protection at far more affordable premiums, especially when bought early. That’s a win for both your peace of mind and your wallet.

• Customizable Add-Ons and Riders

You can enhance your NRI Term Insurance with riders like Critical Illness cover, Waiver of Premium, TPD, etc. depending on your specific needs.

• Flexible Premium Payment Options

Pay your premiums using Indian bank accounts or international credit/debit cards, making the whole process seamless no matter where you live.

Whether you're in Dubai, New York, or Singapore, NRI Term Insurance is designed to give you reliable, hassle-free protection that adapts to your life abroad.

Features of NRI Term Insurance Plans

With NRIs spread across different time zones and countries, Indian insurers have adapted their offerings to make Term Insurance for NRIs not just accessible — but seamless and comprehensive. Here's what makes these plans stand out:

• Wide Coverage Options

Whether you're looking for basic security or high-value protection, most plans offer sum insured options ranging from ₹50 lakh to around ₹10 crore — making Term Life Insurance for NRI scalable to your life stage and goals.

• Policy Term Flexibility

You can choose coverage for up to 60/70/80 years, ensuring long-term peace of mind — even if you plan to retire abroad or return to India later.

• Worldwide Claim Support

No matter where life takes you, your nominee can raise a claim from anywhere in the world. Many insurers even have global support desks for smooth overseas coordination.

• Online Documentation & Onboarding

From application to issuance, the entire journey is digital-friendly. Upload your documents, complete verification, and get covered — all from abroad.

• Tele/Video Medicals for Select Geographies

Living in the US, UAE, Singapore, or other major hubs? Some insurers let you skip physical check-ups by offering telemedical or video medical exams — making Term Insurance for NRI even more convenient. Yet, be warned that you may be asked for a physical check-up in person if the insurer requires additional confirmation of your health status. Actually, If you plan on visiting India for a longer duration, say, 2 weeks or more, then it’s a better proposition to apply when here because the insurer covers the medical check-up bills.

• Loading Charges

Some insurers, depending on which foreign country you are residing in, also apply geographical loading charges, which may range from 10% to 20%.

With a blend of global accessibility and Indian affordability, NRI Term Insurance plans are designed to fit seamlessly into your international lifestyle—without compromising on protection.

Eligibility Criteria for NRI Term Plans

To qualify for Term Insurance in India, NRIs need to meet specific criteria based on citizenship, residence, age, and financial status. Here’s a breakdown:

• Indian Citizens Residing Abroad (NRI)

If you're an Indian passport holder living abroad—whether for work or business—you can apply for Term Insurance for NRIs offered by Indian insurers.

• Overseas Citizens of India (OCIs)

OCIs, or foreign nationals with Indian roots, can purchase NRI Life Insurance plans in India, provided they hold valid OCI cards and meet other eligibility conditions.

• Persons of Indian Origin (PIOs)

PIOs, even if they don’t hold Indian citizenship, can buy term plans designed for NRIs as long as they can prove Indian ancestry and fulfill insurer documentation requirements.

Additional Eligibility Conditions to Keep in Mind

• Age Restrictions & Policy Duration

Most insurers have specific entry age ranges (usually between 18 to 60 years) and restrict coverage to a maximum age of 85 (it is 99 for whole-life plans). Choose a policy term that aligns with your age and long-term needs.

• Residency & Citizenship Criteria

Eligibility can vary based on your country of residence. Some insurers may restrict term plans for NRIs in high-risk countries or require the applicant to maintain Indian citizenship, OCI, or PIO status.

• Income & Employment Considerations

If you're a non-working NRI, self-employed, or have an irregular income stream, insurers may ask for additional documents to verify financial stability—like tax returns, bank statements, or alternative income proofs. Some insurers may also deny the application request altogether and, unfortunately, refuse to give out a policy. 

• Nominee’s Bank Account in India

To ensure seamless claim settlements, the nominee must hold an Indian bank account. This is crucial, especially because the payout will be made in INR.

Notes:

*The application and acceptance process may be a little more complex if you have OCI or PIO status.

**If you live in a country that has any sort of geopolitical unrest, you may be excluded from purchasing an NRI Term Insurance altogether.

How to Purchase Term Insurance in India for NRIs

If you’re an NRI planning to buy term insurance in India, you’ve probably wondered—how exactly does the process work? Here's a step-by-step guide to help you navigate it smoothly:

Step 1: Start with In-Depth Research

Begin by evaluating the insurer's credibility. Look into their Claim Settlement Ratio (CSR), Amount Settlement Ratio (ASR), solvency ratio, and overall financial strength. These indicators will give you confidence in the insurer’s ability to honor future claims.

Step 2: Define Your Insurance Needs

Next, assess your unique requirements. Factors include your age, income, family size, lifestyle, expected inflation, and how long you want the policy to last. This will help determine the ideal coverage amount and policy term that suits your life goals. Use this handy calculator to easily figure it out for yourself.

Step 3: Skip the Basic Multiplier Rule

For NRIs, the common "20x your annual income" rule for coverage doesn’t always apply. Since incomes earned abroad are usually higher, it’s better to personalize your coverage based on actual financial obligations and long-term protection needs.

Step 4: Understand the Policy Terms Inside-Out

Carefully go through the plan’s terms, conditions, and payment modes. Check if premiums can be paid via an Indian bank account or international debit/credit card. Knowing your payment flexibility can help avoid future hassles.

Step 5: Read the Fine Print Carefully

Before you sign up, take a moment to understand the claim settlement process, exclusions, limitations, and renewal terms. Being aware of the fine print ensures there are no surprises when your family needs the policy the most.

Note: You can purchase NRI Term Insurance from anywhere in the world unless the country is specifically excluded. However, if you purchase the policy while living abroad, the steps involved and the documents required will be more extensive. Apart from that, if you purchase term insurance in India and then move abroad, you will have to give a written declaration stating the move. You can also purchase an NRI term insurance if you’re visiting India on a trip as an NRI.

Documents Required for NRI Term Insurance

Getting NRI Term Insurance is fairly straightforward, but you'll need to keep a few essential documents handy for verification and underwriting:

• Tax Residency Certificate (TRC) – If Applicable
• Proposal/Application Form- The standard application form where you declare your personal, financial, and health details.
• Medical Examination Reports- Depending on your age, sum assured, and location, medicals might be required. Some insurers allow tele/video medicals for select countries.
• NRE Bank Account Proof- Required for premium payments and claim payouts.
• Proof of Age & Address (Indian or Overseas)- Insurers need this to assess risk and determine your premium. You can submit utility bills, Aadhaar (if available), or overseas ID documents.
• Copy of Passport & Visa- This verifies your identity and confirms your NRI/OCI/PIO status, which is key for eligibility.

Additional NRI-Specific Requirements

Insurers may also ask for the following documents to complete underwriting:

• FATCA Declaration Form – To comply with international tax regulations.
• Latest NRE Bank Statement – This is for proof of income and residency.
• Foreign Address Proof – This should match the proposal form exactly.
• Soft Copy of FTIN (Foreign Tax Identification Number) - If not available, you can simply email the insurer’s helpdesk stating the same.
• Passport (Full Copy):
• First and last pages
• Latest immigration stamp/entry-exit page
• Signed self-declaration (insurer-specific format)

Claim Process for NRI Term Insurance

The claim process for NRI Term Insurance is largely digital and designed to be seamless — whether your nominee is in India or abroad.

• Intimation via Email or Portal

The first step is to notify the insurer about the claim through their official email ID or online portal — quick and hassle-free.

• Document Submission Digitally

All required documents (like death certificate, ID proof, policy details, etc.) can be uploaded online, making the process convenient for nominees outside India.

• Assistance via an Indian Insurer or TPA Abroad

Some insurers offer claim support through third-party administrators (TPAs) abroad or directly through their India-based claim team.

• Direct Credit to NRE or Nominee’s INR Account

Once approved, the claim payout is directly credited — either to the policyholder’s NRE account or the nominee’s Indian bank account, typically in INR.

Note: Although the claim settlement process for NRIs is straightforward enough, it may take a little extra time for the claim payout to happen due to operational and logistical complications caused by the life assured living abroad.

Riders Available with NRI Term Insurance

Riders are like bonus upgrades to your base policy — small add-ons that pack a punch. For NRIs, these riders can provide extra security and peace of mind, especially when facing unexpected health or life events.

• Accidental Total and Permanent Disability (ATPD) Rider

This is an add-on to term insurance that provides financial support if the policyholder suffers a life-altering disability due to an accident. If the insured becomes permanently unable to work, the rider offers a lump sum payout or monthly income, helping manage medical expenses, daily living costs, and income loss. It's a smart way to enhance your base cover and ensure long-term financial stability for your family during tough times.

• Critical Illness Rider

A critical illness rider provides a lump sum payout upon diagnosis of specified life-threatening illnesses such as cancer, heart attack, stroke, or organ failure. This payout can be used for medical treatment, covering household expenses, or compensating for income loss during recovery. It’s a crucial add-on in today’s age of rising healthcare costs and lifestyle-related diseases.

• Waiver of Premium Rider

With this rider, future premiums are waived if the policyholder becomes critically ill or disabled and is unable to earn. The best part? The policy remains active and continues to provide coverage despite no further payments. It's a great safeguard that ensures temporary income disruptions don’t impact your long-term financial planning.

• Terminal Illness Rider

Usually offered as an inbuilt feature, this rider allows the insured to receive the sum assured in advance if they are diagnosed with a terminal illness — typically defined as a condition with a limited life expectancy (usually less than 6 months). It gives the policyholder and their family some financial breathing room to manage treatment expenses or make important end-of-life decisions without added stress.

Taxation and GST Implications for NRIs

• Claim Exemption Under Section 10(10D)

The sum assured and maturity benefits received under NRI Life Insurance are completely tax-free under Section 10(10D) of the Income Tax Act—provided the policy meets certain conditions like the premium not exceeding 10% of the sum assured. This means your family receives the claim amount without any tax deductions.

• Premium Deduction Under Section 80C (If Taxable in India)

If you’re an NRI with income taxable in India (like rent or capital gains), you can claim a deduction of up to ₹1.5 lakh per year on the premiums paid towards term insurance under Section 80C. This can help lower your overall tax liability.

• GST Refund Process via NRI Declaration (If Applicable)

Term insurance premiums usually attract 18% GST. However, NRIs can claim a refund on this amount by submitting a self-declaration stating their NRI status, as per GST regulations. It’s a recurring submission during renewals, and helps reduce the cost of the policy. However, this applies only if the premium payments are done from an NRE account.

Best Term Insurance Plans for NRIs

Feature	Axis Max Life (Smart Term Plan Plus)	HDFC Life (Click 2 Protect Super)	ICICI Prudential (iProtect Smart)	Bajaj Allianz (eTouch II)	TATA AIA (Sampoorna Raksha Promise)
Educational Requirement	12th Pass	SSC / 12th / Grad+	Graduate+	Graduate+	Graduate+
Max Cover	₹25 Cr	₹10 Cr	₹10 Cr	₹10 Cr	₹10 Cr
Minimum Income	₹10 LPA+	₹10 LPA+	₹10 LPA+	₹10 LPA+	₹10 LPA+
Riders Available	Accidental Death and Disability Critical Illness	Waiver Of Premium, Critical Illness, Accidental Death Benefit, Income Benefit on Accidental Disability	Critical Illness, Accidental Death Benefit	All Add-ons Critical Illness (select countries)	Accidental Total and Permanent Disability (standard countries) Criticare (select countries)
GST Refund	Waived Upfront	Waived Upfront	Apply for reimbursement Post-payment (via form + NRE statement)	Waived Upfront	Waived Upfront
Medical Costs	India: Covered Abroad: Covered (based on premium, region)	India: Covered Abroad: Own expense	India: Covered Abroad: Covered (based on premium, region)	India: Covered Abroad: Covered (based on premium, region)	India: Covered Abroad: Covered (based on premium, region)
Self-Employed Eligibility	❌	✅	❌	✅ (ITR + CA Certificate)	❌

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Conclusion

Term Life Insurance for NRIs is not just affordable but also offers comprehensive global coverage, making it a smart financial move to secure your family’s future. With competitive premiums and trusted Indian insurers, NRI term insurance is a value-packed solution for peace of mind across borders.

Before you buy, take time to compare plans, check for claim settlement ratios, and consult a licensed advisor who understands NRI-specific needs. That way, you can confidently pick the best NRI Term Insurance plan tailored to your goals.

Frequently Asked Questions (FAQs)