Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak Guaranteed Fortune Builder

A plan that offers guaranteed income for your future goals. Know more

Kotak e-Term

Protect your family's financial future. Know more

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family. Know more

Kotak Guaranteed Savings Plan

A plan that offers long term savings and life cover. Know more

Kotak e-Invest

Insurance and Investment in one plan. Know more

Kotak Lifetime Income Plan

Retirement years are the golden years of life. Know more


Get a Call

Enter your contact details below and we will get in touch with you at the earliest.

  • Select your Query

Thank you

Our representative will get in touch with you at the earliest.

Can NRIs Invest in ULIP Plans Offered in India?

As per the Foreign Exchange Management Act (FEMA), NRIs can invest in India, including ULIP plans. Read this blog further to learn more about this.

  • Mar 16, 2022

Updated on: 11th August, 2023

Among all the investment options in India, Unit Linked Insurance Plan (ULIP) is currently one of the most popular options, and many people are investing in it. However, what if an NRI wants to invest in ULIP in India? NRIs can invest in ULIP schemes to benefit the security of insurance and returns on investment.

Key Takeaways

  • NRIs can invest in ULIPs in India, subject to certain regulations and procedures set by the Insurance Regulatory and Development Authority of India (IRDAI).
  • NRIs can benefit from exposure to Indian equity and debt markets through ULIP investments.
  • ULIPs allow switching between investment funds based on market conditions and risk appetite.
  • ULIPs have the potential to generate wealth over the long term, helping NRIs achieve their financial goals.
  • NRIs can claim tax benefits on ULIP premiums and tax-free maturity benefits.

Investment is one of the main sources of wealth generation. It helps you earn money and assets with the help of the right schemes. However, Investing can be a little tricky if you are residing in a foreign land. Many people have questions about whether non-residents can invest in India. When it comes to India, NRI investors are welcome to invest in various domestic schemes. ULIPs are one of the most popular plans for investment.

What is ULIP?

ULIP plans stands for Unit Linked Insurance Plan. It is a financial product that combines life insurance coverage with investment opportunities. A portion of the premium you pay when you invest in a ULIP is used to provide life insurance coverage. In contrast, the remaining portion is invested in a variety of funds, such as equity, debt, or a mix of both, based on your risk appetite. ULIPs offer a dual benefit of life coverage and potential wealth creation through investment returns.

Also Read: What is ULIP?

What are the Criteria to be NRI?

As per Section 2(30) of the Income Tax Act, 1961, “non-resident as a person who is not a resident”. A Non-Resident Indian (NRI) is an Indian citizen who is residing outside India for 182 or more days in a financial year. Income Tax Act 1961 and Foreign Exchange Management Act govern and prescribes the taxation rules for NRIs in India.

According to the FEMA, a NRI is a person who has left India or remains outside of it for the purpose of business, employment, vocation, or any other circumstances indicating his or her intention to remain outside India for an unsure amount of time.

Can Non-Residents Invest in ULIPs in India?

As per the Government of India and the regulations of FEMA (Foreign Exchange Management Act), NRIs are allowed to invest in India. ULIPs (Unit Linked Insurance Plans) have gained popularity as a hybrid financial instrument combining insurance and investment benefits. NRIs can invest in ULIPs, subject to certain regulations and procedures set by the Insurance Regulatory and Development Authority of India (IRDAI).

It is suggested that as an NRI, you should look through all the ULIP investment options available in India and select the best ULIP policy in India that fits your investment goals

Why NRIs Should Invest in India?

There are many reasons why an NRI should invest in India. Here are a few important points to note:

  • India ranks among the top ten countries in the world in terms of economic growth.
  • NRIs get new investment opportunities from India-based banks and NBFCs.
  • NRIs get a wide range of investment options available in India.
  • From traditional investment options like PPF, Insurance, etc., to modern market-linked investment options like ULIPs, NRIs can invest as per their needs.
  • As an NRI, by investing in India, you get access to your country’s stock market through options like ULIPs, which allows you to get a bundle of insurance and investment at once. Also, if you plan on a long-term ULIP investment, the possibility of return is much higher.
  • You get a better opportunity to plan your future moves by investing in a market you know and know of.

How to Invest in ULIPs in India If You Are an NRI?

If you are an NRI, all you need is to have the required documentation and a mode of payment through an Indian bank to invest in India. There may be other minor requirements, but in general, you only need to fulfil the documentation part and have an Indian source of payment for investing in the country. You will be asked for an NRE/NRO bank account in an Indian bank as well.

Modes of Premium Payment for NRI Investors

NRIs can make premium payments using various modes, such as:

  • Online payments through net banking using their NRE/NRO accounts.
  • Electronic fund transfers from foreign bank accounts to the insurer’s designated account.
  • Payment through debit or credit cards issued abroad.
  • Offline payments through cheque or demand drafts drawn on their NRE/NRO accounts.

List of Documents NRIs Require to Invest in ULIP in India

In order to be eligible to invest in India as an NRI, you must comply with the rules and regulations. Here is a general list of documents required to be submitted by NRIs to invest in India:

  • An updated and recent copy of the passport for identification and age
  • Passport size photographs (Recent)
  • Proof of residence (Overseas)
  • Proof of residence (In India)
  • Proof of Income
  • Overseas Citizenship of India (OCI) or a Persons of Indian Origin (PIO) Card - In case you are a permanent overseas resident having an Indian origin
  • A copy of Form 60 or PAN card (if you have an Indian source of income)

Furthermore, there are some basic documents that are required to comply with the KYC and anti-money laundering norms. The insurer might ask for other documentation that must be cleared while selecting a ULIP Policy.

Note: The actual list of documents might vary depending on the insurer and their policy.

Benefits of Investing in ULIPs for NRIs

There are numerous advantages of ULIPs beyond providing returns and insurance to the policyholders. Take a look at some of the benefits of ULIPs that can be useful for NRIs:

Insurance Coverage

ULIPs offer insurance coverage, providing financial security for the policyholder’s family in case of unfortunate events.

Market Exposure

NRIs can benefit from exposure to Indian equity and debt markets through ULIP investments.


ULIPs allow switching between investment funds based on market conditions and risk appetite.

Wealth Creation

ULIPs have the potential to generate wealth over the long term, helping NRIs achieve their financial goals.

Tax Efficiency

Tax benefits on premiums and tax-free maturity benefits enhance the overall returns from ULIP investments.

Tax Exemptions for NRIs Investing in ULIPs in India

Not only is a ULIP for NRI a good retirement plan, but it also helps reduce the tax burden. The following is a list of ULIP tax benefits for NRI investors.

Discounts on ULIP Premiums

NRIs are entitled to the same tax benefits under Section 80C as Indian residents. A tax deduction of upto ₹1,50,000 can be availed of by NRIs as per the list of investments provided in Section 80C. These deductions are subject to the following conditions:

  • The deduction is applicable to premium payments that do not exceed 10% of the total sum assured under the ULIP (20% for ULIPs bought before April 1, 2012). This deduction is available for premiums that you or your family members have paid.

ULIP Maturity Deductions

In accordance with Section 10(10D) of the Income Tax Act (ITA), the death benefit received by the nominee in the event that the policyholder passes away while the ULIP policy is in effect, is tax-exempt.

Also Read: What is Section 10D of the Income Tax Act?

Double Tax Avoidance Agreement (DTAA)

NRIs may be subject to taxation in both their home country and India. Their income could be significantly reduced by paying two times as much in taxes. A DTAA (Double Tax Avoidance Agreement) can help to avoid this. Due to India’s DTAA agreements with 80 nations, an NRI can be eligible for tax exemption from one of the two nations or a tax credit for one of the two.

Important Considerations for NRIs Investing in ULIPs in India

Investing in ULIPs is a smart decision for anyone. It can help you accumulate wealth and secure your future with the insurance feature. While investing in ULIPs, take the following factors into consideration:


NRIs can invest in ULIPs using foreign currency held in their NRE (Non-Residential External) or FCNR (Foreign Currency Non-Residential) accounts.


Investment returns and maturity proceeds can generally be repatriated outside India after necessary taxes are paid.


NRIs need to follow the regulations set by the Reserve Bank of India (RBI) and IRDAI for investing in ULIPs.


Tax implications vary based on factors like investment duration and residency status. NRIs should consult with tax experts to understand their tax liabilities.

Policy Ownership

NRIs can own ULIP policies in their own name and nominate residents or NRIs as beneficiaries.

Premium Payment

NRIs can pay premiums using funds from their NRE/NRO (Non-Residential Ordinary) accounts or through inward remittances from abroad.

Final Thoughts

NRIs can invest in ULIPs in India. ULIPs offer both insurance and investment benefits. But before investing, they should understand the rules, taxes, and documents needed. Consulting with financial consultants and tax professionals can help make informed choices of investment for NRIs that align with their financial goals and circumstances.

In this policy, the investment risk in the investment portfolio is borne by the policyholder.

Kotak e-Invest

Download Brochure


  • Return of Mortality Charges*$
  • Enhanced Protection
  • Multiple Plan Options
  • Zero Premium Allocation Charges
  • Tax Savings^

Ref. No. KLI/22-23/E-BB/521


- A Consumer Education Initiative series by Kotak Life

Similar Articles

Which is Better – FD, Mutual Fund, SIP, or ULIP?

Investments Options to Buy a house in India

Best Investment Plans For You To Invest In 2023

What are the Best Investment Options For Females?

How to Use Recurring Investment Strategies to Build Wealth?

Is ULIP a Complex Financial Product?

Is This The Right Time To Invest In ULIP? Why or Why Not?

Why Should I Invest in ULIP?

Top 10 Investment Strategies to Create Wealth

Single Premium ULIP or a PPF - Which One is Better?

Beginner's Guide to Wealth Creation: Meaning, Strategies, & Importance

ULIP Withdrawal Conditions - Before and After 5 years

What are the Best Investment Options for Young Adults?

What Happens If I Stop Paying My ULIP Policy Premium After Paying the First Premium? Will I Still Get The Return?

Develop an investing plan

What is SIP Calculator, and How it Works?

Asset Allocations in ULIP - Know the Top Benefits

ULIP Frequently Asked Questions (FAQ) - Kotak Life

What is Lock-In Period in ULIPs?

What Is Financial Planning?

How to Increase Net Worth Along with Family Protection

What is the Estimated Return Percentage on ULIP? Do Investors Get Compound Interest?

Will You Need to Withdraw or Surrender Money From ULIP

Why Are ULIPs Called Flexible Investments?

Four Financial Lessons from The Vedas on Living Life to The Fullest

All you need to know about claiming maturity proceeds from Ulip

Got a Salary Hike? Here’s How to Plan your investment further

ULIPs Investment – A Boon or Bane?

5 Reasons to Buy ULIPS for a Financially Secured Future

ULIP Plans Riders You Should Know About

यूनिट लिंक्ड इंश्योरेंस प्लान में लॉयल्टी एडिशन कैसे काम करते हैं

What's Better for Your Child's Education? Child Plans or Mutual Funds?

Creating a second source of income with life insurance

How Is ULIP Different from Other Life Insurance Plans? Where Can I Invest - ELSS, ULIP, or PPF?

First Job? Here are Some Tips on How to Manage Finances

Why Do You Need A ULIP Plan - All You Need To Know

How To Invest Money In ULIP?

5 Reasons Why ULIP Plans are One of The Best Retirement Planning Instruments

Balancing Investment Between Risk and Return on Investments

How has ULIP Grown Over the Last 3 years?

What is Partial Withdrawal in ULIPs?

यूलिप के फायदे और नुकसान क्या हैं?

8 Charges in ULIP That You Must Know

Are Investment Returns Guaranteed in a ULIP?

How to Cancel ULIP Policy?

What are Some of the Safest Investment Options in India?

How Can a Legal Nominee Claim ULIP Benefits are the Policyholder’s Death?

5 Best Long Term Investments To Add To Your Portfolio in 2023

How to Calculate Your ULIP Returns?

Best Investment Options to Cover Your Child's Education

Does Rupee Cost Averaging Work In Unit-Linked Insurance Plans?

5 Reasons to Have a Child Education Plan

Is the surrender value of ULIP taxable?

What is the Time Value of Money (TVM)?

ULIP Plan or Traditional Insurance Plans - Which is better?

Can ULIP Policy be Transferred?

What are Index Funds, and How Do They Work?

Difference Between ULIP and Endowment Plan?

How Much Wealth Can You Create From ULIP in 10 years?

How to Plan Your Child's Education - A Step-by-Step Guide

Do ULIPs Give Good Returns On Investments?

What is Fund Value in ULIP?

ULIP Vs Life Insurance Plan Know the Difference

What is Direct Investment and its Types?

Different Types of ULIP Investments in India

ULIP As An Investment Option For Senior Citizens

How Safe is it to Invest in ULIP plans?

वित्तीय संपत्तियां और उनके प्रकार

Which are the Best ULIP Plans in India for Children?

ULIPs: Suitable for all

यूलिप प्लान में परिपक्वता लाभ क्या हैं: फंड वैल्यू सम एश्योर्ड या ओनली फंड वैल्यू?

Here's are the uses of ULIP your must be aware of

What are ULIPs and their Types?

What is ULIP Plan, and How Does it Work?

How to Save Money from Salary?

ULIP Capital Gain Tax: Check Tax Norms for Capital Gain on ULIPs

How to Choose the Best ULIP Plans to Invest in 2022?

Top 11 Investment Plans Available in India

What is Money Management? Definition & Example

Why ULIP Should Be a Part of Your Investment Portfolio?

Best One-Time Investment Plans in India

Investment Options for NRIs in India

What are loyalty additions, and how do they work in a ULIP?

What is NAV in ULIP, and How is it calculated?

Planning For Son or Daughter's Wedding

ULIP Plan as a Gift

How to Set Financial Goals for Your Future

Know How to Invest at Every Age for Larger Returns

8 Important Tips to Maximize Gains with ULIP Investments

Unit-Linked Life Insurance (ULIPs) vs. Term Insurance

Can ULIP Help in Achieving Short-Term Financial Goals?

Can You Have ULIP Plan and Health Insurance Plan Both?

6 Important Tips to Maximize Your Gains with ULIP Investments

Safe Investment Options with High Returns for FY 2018-19

Long Term Savings Plan - Best Savings Investment Plans in India

Why Should You Invest in NPS?

Difference Between Passive and Active Investing

What are Financial Assets & their types?

What are the Maturity Benefits in a ULIP Plan: Fund Value Sum Assured or Only Fund Value?

What are the Advantages and Disadvantages of ULIP?

Difference Between Guaranteed Savings Plan and ULIP

All you need to know about Fund Switching in ULIPs

How ULIPs can help you achieve your financial goals

How Increasing Your SIP Every Year Helps You Reach Your Financial Goal Sooner?

What are Fixed Maturity Plans and Why Should I Invest in Them?

Customising investments to manage your wealth

उच्च रिटर्न प्राप्त करने के लिए सर्वश्रेष्ठ इन्वेस्टमेंट विकल्प

Why Should You Build an Emergency Fund?

ULIP Investment Strategy: Top Tips to Improve Your ULIP Gains

Why are ULIPs One of the Best Tax Saving Instruments?

यूलिप के फायदे (Benefits of ULIP in Hindi)

How Can ULIPs Help You Plan for Your Child's Future?

ULIP vs FD - Which is Better and Why?

Factors Affecting Share Prices In The Stock Market

What is Mutual Funds? | How Mutual Funds Work, Definition

Benefits of ULIP as a Child Insurance Plan

Why is Portfolio Diversification Important? How to Diversify Your Portfolio?

Are Money Back Policies Helpful? A Complete Guide

Endowment Plan vs Fixed Deposit?

Tax-Deferred Savings Plan: Overview, Benefits, Works

Top ULIP Myths That You Must Stop Believing In

How to Start Saving Money in 10 Simple Ways?

Which is a Better Investment - Mutual Funds Or ULIP?

How is the Compound Annual Growth Rate (CAGR) Calculated in ULIP?

What are the Best Investment Options for Beginners or Amateur Investors in India?

FAQs on Taxation of ULIPs

Early Investing and the Power of Compounding

Top 5 Principles That Need to be Followed for Wealth Creation

4 Rules To Keep In Mind To Secure Your Child’s Future Financially

Are Gains from ULIP Sale Taxable?

What is a Child Money Back Plan, and How Does it Work?

Corporate Bonds: Meaning, Types & Benefits

How to Fix the 9 Most Common Financial Problems Your Family is Facing

What are the things to consider before buying ULIPs?

ULIP Benefits You Can Avail from Early Investing

Difference Between Linked and Non-Linked Insurance Plans

What is Fund Switch in ULIP? And ULIP Fund Switching Techniques

Savings Plan for Grandchildren

How To Track ULIP Performance?

Learn About Safe Investments with High Returns in India

Receiving regular payouts at various stages of life

Know Why You Should Stay Invested in Your ULIP Plan

ULIP NAV - Everything You Need to Know

What Is Social Impact Investing and How Does It Benefit Society?

How to Plan your Investment to Achieve Periodic Financial Goals?

Building wealth through regular investing

ULIP Tax Benefits: यहां निवेश करने पर मिलते हैं 5 बड़े फायदे

Here's Whether You Should Link ULIP Plan with your Term Insurance

Can You Invest in Both Term Insurance and ULIP?

Best Investment Plans for Children - Secure Your Child's Future

What Is a Credit Score? Definition, Factors, and Ways to Raise It

What is ULIP Renewal?

What is a Savings Plan and What are is Benefits?

यूलिप और उनके प्रकार क्या हैं?

Is ULIP A Good Investment Option?

How to Create Short-Term and Long-Term Wealth with ULIPs - Kotak Life

What is Premium Redirection in ULIPs Plans | ULIP Insurance Plans | Kotak Life Insurance

What is ULIP and Its Benefits?

How to Apply for Death Claim Benefits in ULIPs - Kotak Life

Top 5 Investment Options in 2022 for Healthy Returns

Why ULIP is Better Investment for Long-Term Wealth Creation?

Planning for Your Child's Higher Education? Explore These Investment Options

Understanding ULIP Risks: What are the Odds of Losing all my Money and Projected Returns?

Rate of Interest on Different Investment Plans in India

Here's Why it's a Good Time to Explore ULIPs as an Investment

How Can ELSS Funds Help You Save Tax & Create Wealth?

What are the Best Investment Options for Students in India?

Do You Know the Difference Between Savings and Investment?

How to Manage Inheritance Money?

Best Investment Options in India in 2022

Planning Financial Goals and Objectives of Financial Planning

Importance of Portfolio Management

What is a Bond Fund and How It Works?

How to Manage Your Portfolio Like a Professional?

How to Make Your Financial Portfolio?

How Much Wealth Can You Create from ULIP in 10 years?

ULIP policy: What happens when you stop paying ULIP policy premium during lock-in period

What are the Minimum and Maximum Investments in ULIP?

What is Compound Interest, And How Do I Calculate it?

Is Life Insurance Investment Worthy Enough

How and when should you exit from bad-performing ULIP?

Planning For Children's Future

ULIP Investment Benefits You Must Know

Learn About Safe Investments with High Returns in India

Can I Surrender My ULIP Policy after 2 Years?

Here's Myths on Investments in ULIP Plans

यूलिप में 8 शुल्क जो आपको अवश्य जानना चाहिए

How to Build a Strong Financial Foundation For the Future?

What is Equity Mutual Funds: Meaning, Types & Benefits

उच्च रिटर्न प्राप्त करने के लिए सर्वश्रेष्ठ इन्वेस्टमेंट विकल्प

How Do One-Time Investment Plans Work?

Will AI be Your Future Financial Adviser? What Role Will Humans Play?

Successful Financial Planning for Urban Women

How Can ULIP Plan be as an Investment for Your Child

What are the Best Short-Term Investment Plans with High Returns?

The lesser-known facts about ULIP policy that customers should be aware of?

What is Savings and the Importance of Saving Money