Term Insurance for NRI

Term Insurance for NRI

Term insurance for NRIs (Non-Resident Indians) has become one of the most cost-effective ways to secure a family's future in India. With the introduction of fully digital onboarding and video medicals, NRIs residing in the USA, UK, UAE, or anywhere else can now secure high-value life cover in India without having to travel.

What Is a Term Insurance Plan for NRIs?

A term plan for NRI is a pure life cover policy designed specifically for Indian citizens living abroad. It provides a significant death benefit (sum assured) to the nominee if the policyholder passes away during the term. These plans offer global coverage, meaning the policy remains active regardless of where the insured is living at the time of the event.

Can NRIs Buy Term Insurance in India?

Yes. Under the Foreign Exchange Management Act (FEMA), NRIs, Persons of Indian Origin (PIO), and Overseas Citizens of India (OCI) are eligible to buy term insurance in India. In fact, premiums for NRI insurance in India are often 40-50% cheaper than similar plans in countries like the USA or UAE.

How Do Term Insurance Plans for NRIs Work in India?

NRI term plans function similarly to resident plans but with specialised underwriting:

• Application: The NRI applies online from their country of residence.
• Medical Assessment: Most insurers now use VMER (Video Medical Examination Report) or tele-medicals, removing the need for physical tests in India.
• Currency: Premiums can be paid in INR via NRE/NRO accounts or in foreign currency.
• Global Protection: The policy covers death occurring anywhere in the world.

Key Features of Term Life Insurance Plans for NRIs

• High Sum Assured: Access to covers ranging from ₹1 Crore to ₹50 Crores.
• Tele-Medical Facility: Remote health check-ups via video calls.
• Repatriable Payouts: If premiums are paid through an NRE account, the death benefit is generally repatriable.
• Flexible Payouts: Nominees can receive the amount as a lump sum or a monthly income.

Benefits of Buying Term Insurance for NRIs

• Lower Premiums: Indian mortality tables often result in lower premiums than those of international insurers.
• Tax Advantages: Premiums are eligible for deduction under Section 80C, and payouts are tax-free under Section 10(10D).
• GST Benefit: NRIs paying in foreign currency through NRE accounts can often claim a GST exemption of 18% on their premiums.

Eligibility Criteria for NRIs

• Age: 18 to 65 years.
• Qualification: Most insurers require the NRI to be a graduate for high-sum-assured plans.
• Income: Minimum annual income (usually >₹10-15 Lakhs) must be verifiable.

Why Should NRIs Choose Term Insurance in India?

NRIs often have financial liabilities in India, such as home loans or obligations to ageing parents. Buying insurance for NRIs in India ensures these domestic responsibilities are covered without currency exchange risks.

When Is the Right Time for NRIs to Buy?

Ideally, as soon as you move abroad, premiums are based on age; locking in a plan at 28 is significantly cheaper than at 38, even if your income increases later.

Riders Available with NRI Term Insurance Plans

• Accidental Death Benefit: Extra payout in case of death due to an accident.
• Critical Illness Rider: A lump sum payment on diagnosis of major illnesses like cancer or a heart attack.
• Waiver of Premium: If the insured becomes disabled, all future premiums are waived while the cover continues.

Why Buy NRI Term Insurance Through Jio Insurance Broking?

• Global Support: Dedicated 24/7 assistance for customers in different time zones.
• Comparison Engine: Side-by-side comparison of the best term insurance for NRI.
• Zero Paperwork: 100% digital journey from document upload to policy issuance.

How to Buy While Staying Abroad or Visiting India

• While Abroad: Use the Jio Insurance portal to upload documents and schedule a video-medical. The policy is issued digitally.
• While Visiting: You can undergo a medical examination in any major Indian city, which may allow for a higher sum assured.

Documents Required to Buy Term Insurance for NRIs

1. Copy of Passport (front and back).
2. Valid Visa or Work Permit.
3. Income Proof: Last 3 months' salary slips and 6 months' bank statements (foreign or NRE/NRO).
4. Address Proof: Overseas utility bill or rental agreement.
5. FATCA Declaration: Required for tax compliance (especially for US/Canada residents).

Medical Examination Requirements

In 2026, VMER (Video Medical Examination) is the standard. A doctor conducts a video call to assess your health. If physical tests are required, insurers have empanelled labs in major global hubs (such as Dubai, London, and Singapore).

How Can NRIs Claim Term Insurance in India?

The nominee (living in India or abroad) must submit:

• Death Certificate: Attested by the Indian Embassy if the death occurred abroad.
• Claim Form: Available on the insurer's website.
• Identity Proof: Of both the deceased and the nominee.
• Bank Details: For the transfer of the sum assured.