Term Insurance for NRI in India
- What is an NRI Term Insurance Plan
- Features of NRI Term Insurance
- Why Should NRIs Purchase a Term Plan from India?
- Why Choose NRI Term Insurance Plan Offered by ICICI Pru Life?
- How do Term Insurance Plans for NRI Work?
- What are the Benefits of Term Insurance for NRIs?
- Onboarding Process for NRIs
- Conclusion
What is an NRI Term Insurance Plan?
Term insurance for NRIs is a type of life insurance specifically designed for Non-Resident Indians (NRIs) living outside India. This insurance plan is applicable worldwide (unless specified otherwise) and provides coverage for the policyholder’s life during the policy term.
Unlike regular term insurance, which is tailored for Indian citizens, NRI term insurance addresses the unique needs and circumstances of NRIs. It offers the same fundamental benefits as traditional term insurance but is customised to suit the needs of those residing outside India.
Features of NRI Term Insurance
Here are some features of a term plan for NRIs
Easy Documentation
Buying term insurance as an NRI is straightforward. You can submit your documents online or in person, depending on your preference. All that is required is proof of identity, address and income, making the application process quick and hassle-free.
Policy term as per your needs
Life cover of your choice
Easy payments
What are the Benefits of Term Insurance for NRIs?
Here are some advantages of term insurance for NRIs:
Tax benefits
NRIs can enjoy tax benefits* on the premiums paid under Section 80C and on premiums paid towards other optional riders (based on the riders opted). The insurance payout is exempt subject to conditions prescribed under Section 10(10D) of the Income Tax Act, 1961.
Death benefits
Term insurance plans offer a sum assured in case something unfortunate happens to the policyholder. This is given to the nominee and is exempt from tax subject to conditions prescribed under Section 10(10D) of the Income Tax Act, 1961.
Financial stability
Term insurance for NRIs can be an excellent source of financial security. Term plans can be an affordable way to secure the future needs of your loved ones.
Select your payout
NRI term insurance in India offers multiple payout methods, such as lump sum, regular income, lump sum plus regular income, and increasing cover with time. You can select anyone based on your family’s preference and lifestyle needs.
Why Should NRIs Purchase a Term Plan from India?
Being one of the breadwinners of the family means always feeling responsible for the family’s security. For NRIs, this feeling is amplified by the fact that they are away from their families and are thus always looking for trustworthy avenues that will help them secure their families as well as build wealth for their future.
Purchasing a term plan comes with a number of distinct advantages, some of which have been listed below:
- Easier Claim settlement for dependents back in India like spouse, children or parents, etc.
- Tax Benefits^
- In unforeseen situations like pandemic or when you are unable to visit India, such policies will ensure financial security for dependents back in India
- Affordable premium pricing for term plans purchased from India
ADVT: W/II/0130/2025-26
How do Term Insurance Plans for NRI Work?
- Term insurance for NRIs works just like other term plans in India. The policyholder pays a premium to the insurer in return for a sum assured. In the unfortunate event of the policyholder’s demise during the policy tenure, the sum assured is paid to the nominee.
- NRIs can also get all paid premiums back with the smart exit benefit° option, under which the total of all the premium payments is given back to the policyholder after the age of 60.
- Additionally, NRIs can add other optional riders/add-ons to enhance their plan’s coverage.
ADVT: W/II/1023/2024-25
Easy Steps to Buy NRI Term Insurance in India
1
Choose the best term insurance plan in India for NRIs:
Browse options and pick the term insurance plan that fits your needs
2
Submit documents:
Complete your application by submitting proof of your identity, address and income
3
Medical test:
Take a medical test either in India or via a video consultation, depending on your location
4
Add riders
Get additional coverage by adding riders to the plan for a comprehensive coverage
5
Pay the premium
Make your premium payment online
Onboarding Process for NRIs:
There are three parts to the onboarding process:
Documents Required
Medicals
Additional requirements
Here is a list of documents required to buy term insurance :
- Passport copy along with entry & exit details (wherever applicable)
- NRI Questionnaire
- Visa copy
- TIN / PAN number of resident country (if available), Form 60/ PAN declaration
- KYC Documents
- Income proof documents
Based on the details filled by you in the application form, you may be asked to furnish some additional details about your NRI status. Hence it is very important that you provide accurate details while filling up the application form
Based on your profile you may either be eligible for a Tele Medical or a Physical medical. The Company on case to case basis carries out a Video Medical Exam (Video MER) whereby a team of experts will interact with you over a video conferencing link and ask you a few questions pertaining to your health and medical history (if any).
Decision will be provided basis prevailing underwriting guidelines and policy will be issued accordingly.
In case any risk requirement is raised for application, your case will be declined.
In case during evaluation our team of experts come up with certain findings which need additional information/documents from you, we will notify you of the same
The quicker you fulfil all the requirements and complete the necessary steps, the quicker policy issuance will be.
Note for NRIs:
- ‘Non-resident Indian’ is an individual who is a citizen of India but not a resident of India
- Your annual income should be a minimum of ₹ 10 lakh
- Your minimum educational qualification should be Graduation
- Minimum Sum Assured: ₹ 50Lakh
- You must be between the age of 18-60 years to purchase our plans
COMP/DOC/Feb/2024/92/5423
Conclusion
Term insurance for NRIs is a much-needed financial tool that can offer peace of mind and financial safety for a long time. It can secure your family members in your absence and help you build savings for the future.
Moreover, with the multiple policy terms and payment options, it is a hassle-free investment that requires very little of your time and attention.
Frequently Asked Questions Related to Term Insurance Working
1. Do the NRI need to be present in India while buying a term insurance plan?
The process depends on the plan. In some cases, the NRI may need to be present for some formalities, like the medical test, while in others, the entire purchase process can be done virtually via emails and video consultation.
2. Is the death benefit offered by a Term insurance policy for NRI applicable worldwide?
Yes, the death benefit is applicable worldwide unless stated otherwise in the policy.
3. Which are the available premium payment modes for NRI Term Insurance Plans?
Premiums can be paid in multiple modes, such as monthly, quarterly, semi-annually or annually. Additionally, NRIs can opt for online payment modes like debit/credit cards and net banking.
4. Is a PAN card mandatory for an NRI to purchase a Term insurance policy in India?
NRIs do not require a PAN card to buy a term insurance policy. However, a PAN card can be necessary if the NRI files an Income Tax Return (ITR) and claims tax^ benefits under the Income Tax Act, 1961.
COMP/DOC/Feb/2025/202/8448
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