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Key Points

NRIs are buying twice as many term insurance plans from India compared to two years ago. The UAE and Gulf region lead in purchases, making up nearly 60% of policies. Competitive premiums and rupee-denominated benefits are key drivers behind this trend. Women and tech professionals are emerging as significant segments in this growing market.

Key Points: NRIs Double Term Insurance Purchases from India in 2 Years

  • NRI term insurance purchases surged 100% in two years
  • UAE and GCC account for 59% of policy sales
  • Women buyers now make up 15% of NRI policies
  • Europe and Australia see 87% CAGR in India-linked insurance
2 min read

NRIs' term insurance purchases from India double in last 2 years: Report analysis

NRIs are buying twice as many term insurance plans from India due to competitive premiums, rupee benefits, and financial ties back home.

"Across the globe, NRIs are increasingly turning to India's term insurance products to secure their families and financial commitments back home. – Policybazaar Report"

New Delhi, August 13

Non-Resident Indians (NRIs) are increasingly turning to India for buying term insurance plans, with purchases doubling over the past two years, according to an analysis report by Policybazaar.

The data in the report showed a 100 per cent growth rate in NRI term insurance purchases from India between FY22 and FY26 year-to-date (YTD).

The report also noted that the reason for this increase is the competitive premiums, long-term policy options, and rupee-denominated benefits that safeguard families and assets back home have been key factors driving this trend.

It stated, "Across the globe, NRIs are increasingly turning to India's term insurance products to secure their families and financial commitments back home."

Many NRIs continue to have financial commitments in India, such as dependents, home loans, and investments, making India-linked insurance a preferred choice.

The UAE and Gulf Cooperation Council (GCC) region account for nearly six in every ten NRI term insurance purchases.

Data showed this region contributed 59 per cent of total NRI term life insurance policies issued over FY22 to FY26 YTD.

Most of these buyers are salaried professionals and business owners in sectors like construction, retail, and services. Lower premiums and rupee-settled benefits make India-based insurers attractive for Gulf-based NRIs.

Europe and Australia-New Zealand have also seen rapid adoption of India-linked term life insurance, recording a combined compound annual growth rate (CAGR) of 87 per cent between FY22 and FY26 YTD.

This growth is largely driven by tech professionals and long-term permanent residents choosing India-based protection plans.

The analysis also pointed out that women are emerging as a growing segment among NRI term buyers. Female participation now stands at 15 per cent, with higher uptake from the UAE and North America.

Almost 80 per cent of NRI buyers prefer monthly premium payment structures, making it the dominant choice. However, there has been a noticeable increase in single-premium policies, especially in the UAE, where some buyers choose to lock in 30-40 years of coverage upfront.

The analysis outlined that India's insurance sector is becoming attractive for the NRIs.

- ANI

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Reader Comments

S
Shreya B
Interesting trend! But I hope IRDA is properly monitoring these policies. With so many NRIs buying, insurers must ensure quick claim settlements for families in India. Heard horror stories of delayed payments when beneficiaries are abroad.
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Aman W
My brother in Canada took a 30-year term plan from India last month. The paperwork was surprisingly smooth - all done online with video KYC. Indian insurance companies have really upgraded their digital processes for NRIs. #MakeInIndia
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Priyanka N
Good to see women NRIs participating more! As a working professional in Singapore, I opted for an Indian term plan because it covers my parents' medical needs too. Western policies don't understand our joint family financial responsibilities.
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Karthik V
The GCC numbers don't surprise me. Most NRIs there are on employment visas without permanent status. Indian term plans give us peace of mind knowing our families back home are protected, regardless of our visa situation abroad.
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Nisha Z
While the growth is impressive, I wish insurers would improve their customer service for NRIs. Timezone differences make it hard to get support when we need it. Also, premium payment methods need more international options beyond NRE accounts.
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Varun X
Single premium policies

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