Can NRI Buy Life Insurance in India?

There is no certainty in life; it is a roller coaster ride, and every individual must be prepared for the same. While there will be many ups in your life, you must also be prepared for the downs. One way of securing the financial future of your loved ones is by taking a term plan. A term plan will safeguard your capital reserves and guarantee a stress-free life. You will not have to worry about the financial security of your loved ones in your absence. India’s insurance industry has undergone a significant change and has matured over the years. Therefore, the importance of term insurance for NRI has increased in the minds of proactive financial planners. It is essential to buy term insurance to build a diversified portfolio.

Can NRIs buy Term Insurance in India?

Non-Resident Indians (NRIs) are eligible to avail themselves of an NRI term insurance plan in India. NRIs live all over the globe and make up a significant economic segment. Term insurance for NRI should be based on their specific requirements and needs. There are different ways in which an NRI can purchase a term insurance plan.

NRIs are eligible to purchase life insurance policies under the Foreign Exchange Management Act (FEMA). The premiums can be paid in foreign currency through an NRO bank account, an NRE/FCNR bank account, or another currency as long as it matches the one specified in the issued life insurance policy.

How can NRIs buy term insurance in India?

Purchasing term insurance for NRI is simple and convenient.

• An NRI can opt for any one of the two alternatives to buy term insurance.
• The first option is to purchase the policy while visiting India, wherein the purchase process will be the same as for India citizens.
• The second option is to purchase the policy from the current country of residence. This can be done through a mail order wherein a detailed verification is required.
• The terms and conditions in the case of NRI term life insurance are quite flexible.
• The sum assured varies from INR 2 lakh to INR 1 crore, and the premium payable is based on the terms of the policy, age, frequency, and health conditions.
• The plan’s duration is also variable and ranges from five years to 30 years.
• Any individual between the age of 18-65 can buy term insurance.
• One can make the premium payment online, but the policyholder must be an account holder of a bank specified in the policy.
• The payment can be made by remittance in a foreign country, through a Non-Resident Ordinary (NRO) bank account or via a Non-Resident External (NRE) bank account.
• It is important to note that the premium will be the same for ‘Resident Indians’ and NRIs if the risk involved is the same.
• There is no additional premium charged from an NRI for a term plan.
• The death benefit will be paid to the mentioned bank account while buying the term plan.

Required documents for NRI term insurance?

Here is a list of the documents required to purchase term insurance for NRI.

• Attested copy of passport
• Application form
• Age proof
• Documents specifying the health conditions
• Income proof
• First premium


NRIs have a grace period if they default on their premium payment. Hence, if an NRI term insurance India policyholder misses a premium payment for some reason, the amount can be paid within the grace period.