For many Non-Resident Indians (NRIs), protecting their family’s financial future back home is an important priority. Term insurance is one of the simplest ways to ensure that your dependeants have financial support in case of an unforeseen event. However, NRIs often have questions about eligibility, documentation, premiums, medical tests, and whether they can buy a plan from India while living abroad. In this article, you will find a clear and easy overview of how term insurance works for NRIs and what to keep in mind before choosing a plan.
What is Term Insurance for NRIs?
Term insurance is a type of life insurance that provides financial protection for a specified period. If something happens to the policyholder during the policy term, the nominee receives the sum assured. For term insurance for NRI, the structure remains similar to resident Indians, but certain processes may vary based on the country of residence, documentation requirements, or medical evaluations.Eligibility and Purchase Options for NRIs
Most life insurance companies in India allow NRIs, Persons of Indian Origin (PIOs), and Overseas Citizens of India (OCIs) to buy term insurance. Individuals living abroad on valid visas such as employment, resident, or long-term stay permits are generally considered eligible.
NRIs can purchase term insurance either during a visit to India or while staying abroad. Many insurers now offer remote or digital onboarding, making it possible to complete the application, documentation, and verification processes from the country of residence. This flexibility allows NRIs to choose a plan that suits their needs without the necessity of travelling back to India specifically for the policy.
Documentation Required The typical documents include:
- Passport and visa copy
- Proof of NRI status
- Address proof (India and overseas)
- Income documents
- Recent photographs
- Medical records, if applicable
Insurers may request additional documents based on underwriting requirements.
Premium Payment Options NRIs can pay premiums in two ways:
- Through NRE/NRO bank accounts in India
- Via international remittances, depending on the insurer’s accepted payment channels
Premium amounts may vary based on age, health, lifestyle, occupation, and the country of residence.
Medical Tests for NRIs Medical examinations are a standard part of the process to determine eligibility and premiums. NRIs can undergo tests either in India or in their country of residence through insurer-approved medical centres.
Claim Process for NRI Term Insurance
The claim process is similar to that for resident Indians. The nominee needs to submit the claim form along with the required documents. The insurer then assesses the case and processes it as per the policy terms.Key Points NRIs Should Consider The following points should be considered by NRIs when they buy a term insurance policy.
- Country of residence: Some countries may be classified in a higher risk category due to local conditions.
- Coverage amount: Choose a realistic sum assured based on your income, responsibilities, and long-term family needs.
- Policy duration: Consider long-term coverage to ensure your dependants remain protected for a significant period.
- Disclosure: Provide complete and accurate information regarding occupation, lifestyle, travel, and health history.
Conclusion Term insurance can be a practical way for NRIs to support their family’s long-term financial stability. Understanding eligibility, documentation, medical tests, and premium options can help you make an informed decision. If you prefer exploring structured insurance solutions, platforms such as Tata AIA offer term plans that you can align with your protection needs. You can go through the plan details and choose the right one.
