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Can NRI buy Term Insurance in India? – All you need to know.

You can definitely buy a Term Insurance plan in India if you’re an NRI or a PIO or an OCI cardholder. Buying Term Insurance in India has now become easy. This article covers the most frequently asked questions. Read ahead to know more.

By: Abhishek Kumbhar | 
Read Time: 4 minutes, 38 seconds | 
Last Updated: 07-03-2022
Can NRI buy Term Insurance in India? – All you need to know.
If you’re a bread earner of your family then buying term Insurance becomes a necessity. Buying Term Insurance makes you and your family financially secure from any uncertain events. Whether you’re a Resident Indian (RI) or a Non-Resident Indian (NRI), buying Term Insurance in India has now become easy. Every year NRIs buying Term Insurance in India often come across many queries. In this article, we will try to address the most frequently asked questions.

Can an NRI  purchase a Term Insurance Plan in India?

Yes, definitely you can buy Term Insurance if you’re an NRI or a PIO or an OCI cardholder.  You can either purchase it online or when you’re on your visit to India. The process is quite simple and hassle-free. All the medical tests can be done remotely.

Do I have to be present in India while buying the policy?

No, you need not be present in India while purchasing your policy. It can be purchased remotely as well.

Would there be any difference in the issuing process if I purchase while I’m still in another country?

Yes, the formalities will be a bit lengthy, comparatively, depending on your country of residence. There is a significance of the country where the policyholder resides as the eligibility and premium depend on a lot of factors.

What is the eligibility?

You would be eligible to buy Term Insurance in India if:
  • You’re an Indian national residing abroad for a certain duration.
  • You’re a person of Indian origin currently having citizenship of any other country (except Pakistan & Bangladesh).
  • You’ve held an Indian passport any time in the past.
  • Your parents or grandparents were a citizen of India by the virtue of the Citizenship Act, 1955.
  • Your spouse is an Indian national.

Do I have to pay an extra premium since I’m a non-resident?

Usually premiums don’t vary for residents or non-residents. Premiums are purely calculated post risk evaluation of that person. So your premium would mainly depend on your country of residence, financial status, and health condition. If you live in a country where the risk of life is higher, for example - if a country is politically unstable or is susceptible to terror threats, the premiums will be higher.

What are the modes in which I can purchase my policy?

There are 2 ways in which you can purchase your policy.
  1. Online - You can easily purchase your Term Insurance directly online on the company’s website or
  2. In-person - You always purchase your policy on your visit to India. Once the underwriting is done and approved, your policy will be treated as any other normal Indian policy.

Will my Term Insurance be valid if I move out of India after I purchase my policy?

Once your policy is accepted and issued, it would remain enforced until you pay your premiums on time. It doesn’t matter to which part of the world you move, your policy would reap the same benefits as it would in India.

Do I need to visit India for my medical tests?

No. Most term plans do not require you to visit India for any medical tests. It can be done remotely as well. Many insurers in India have international tie-ups. If your company has any tie-up, you can directly visit that medical facility and get yourself tested. If your insurer doesn’t have any tie-up in your country then you can get yourself tested from a registered medical facility of that country and then send reports to your respective insurer.  

Will I get any tax benefits?

Yes, you will get all the tax benefits while you’re in India but you’re advised to consider both India and your current country of residence. Tax laws vary from country to country. So it's important to check the tax laws in your country first to avail these benefits.

How can I make a claim?

Once the policy is issued, all insurers will cover the death claim as they would in the case of an Indian resident. The nominee would have to submit the original policy bond and all the necessary documents as per the standard claims procedure.

What will be my mode of payment?

There are 3 ways in which you make your payments:
  1. In Foreign currency - In this mode, you can make payments directly using foreign currency. For this, you would need a Non-Resident External Account (NRE) or a Foreign Currency Non-Resident Account (FCNR) to make payments.
  2. In Indian currency - In this mode, you can directly opt to pay in rupees. For this, you’ll require a Non-Resident Ordinary Account (NRO) to make payments.
  3. Physical payment - Most NRIs have relatives who are still residing in India. They can also make payments on your behalf.

How much term can I opt for?

Depending on your insurer, terms from 6 months to 25 years are currently available in India.

What documents would be required?

If applying online:
  • Duly filled Proposal Form
  • Age Proof
  • Income Proof
  • Health Assessment Reports
  • Attested Passport copy
Buying Term Insurance in India can be a lot cheaper as compared to most of the developed countries. So if you’re planning to save some valuable bucks on your Term Insurance, buying it from India would be your best bet.

You can compare and buy Term Insurance plans at MyInsuranceClub. Get assistance from our trained and certified advisors.

Abhishek Kumbhar
Abhishek Kumbhar is an Insurance Analyst with rich experience in the Finance Industry. With his extensive knowledge and exposure of the Insurance sector, he writes articles to provide insights about different aspects of Insurance.

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