Term Insurance for NRIs Online in India

Q: How does an NRI family file a claim if the policyholder passes away abroad?

Step 1: The nominee contacts the insurer via phone, email, or WhatsApp. Step 2: Submit the death certificate (if abroad, an apostille-certified copy), original policy document, and nominee's ID proof. Step 3: The insurer reviews and settles the claim, typically within 30 days. The claim amount is paid directly to the nominee's bank account in India.

NRIs, OCIs, and PIOs can legally buy IRDAI regulated term insurance policies from Indian insurers while living abroad. These plans provide global life cover but typically pay the death benefit in Indian Rupees (INR) to the nominee. Read more... Indian NRI term insurance works best when your financial dependents, liabilities, or long term goals are based in India. If your protection needs are fully abroad or require foreign currency payouts and overseas servicing, a foreign policy may be more suitable. Read less

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What is NRI Term Insurance?

An NRI term insurance plan is an IRDAI-regulated pure life insurance policy offered by Indian insurers to NRIs, OCIs, and PIOs. If the insured person dies during the policy term, the insurer pays a pre-defined lump sum death benefit to the nominee.

These plans provide only risk cover. If the insured survives the policy term, no maturity amount is paid, unless a specific return of premium variant is chosen (available only in select plans).

Death benefit payouts are generally made in Indian Rupees (INR) to the nominee’s bank account. It is designed purely for financial protection, not savings or investment.

Meaning Why to Buy When to Buy Benefits Riders Eligibility Criteria Documents Required How to Buy? Things to Consider Tax Benefits FAQs

Can NRIs Legally Buy Term Insurance in India?

Yes. NRIs, OCIs, and PIOs are legally permitted to purchase life insurance policies in India, whether they are residing in India or abroad at the time of purchase.

The policy can be bought from any country, subject to the insurer’s underwriting guidelines.
Digital application, KYC, and medical assessment are allowed.
Policy coverage remains valid globally, irrespective of where the insured resides or where death occurs.

Availability, underwriting norms, and pricing may differ based on the applicant’s country of residence, income profile, and medical history.

Should NRIs Buy Term Insurance in India?

This is the most important question for NRIs.

NRIs should consider buying term insurance in India if:

Your spouse, children, parents, or dependents are in India.
Your major financial liabilities (home loan, education, family support) are India based.
You want cost efficient pure life cover with claim handling in India.
You are comfortable with INR denominated payouts.

NRIs should reconsider or compare with an overseas policy if:

Your dependents and liabilities are entirely outside India.
You need foreign currency payouts for estate or offshore planning.
You prefer claims, servicing, and documentation handled outside India.
Most NRIs benefit from comparing Indian and overseas options side-by-side before deciding.

NRI Term Insurance in India vs Abroad

Aspect	Indian Term Insurance	Overseas Term Insurance
Premium cost	Generally lower due to market competition and cost structure	Typically higher in developed markets
Currency of payout	Usually INR	Foreign currency
Ideal for	Families and liabilities in India	Families and liabilities abroad
Claim handling	Processed in India	Processed in foreign jurisdiction
Documentation	Indian legal and banking system	Local foreign regulations apply
Servicing & support	Indian insurer support	Local insurer support

Note: Choose the policy location that matches where your dependents, expenses, and long term financial obligations are actually based.

Features & Benefits of NRI Term Insurance

Term insurance plans offered to Non-Resident Indians (NRIs) by Indian insurers are packed with features designed to provide maximum value and convenience.

High Sum Assured at Low Premiums

Indian insurers offer policies with a very high sum assured, often running into several crores. This is a core design feature of term plans, which is typically much cheaper than policies available in developed countries. This allows NRIs to secure a life cover large enough to replace their future income, cover major liabilities and ensure their family can maintain their lifestyle comfortably, even in their absence.

Flexible Death Benefit Payouts

Modern term plans are not limited to a single lump-sum payout. They offer multiple payout options like regular income, where the sum assured is paid out as a fixed monthly income for a set period to prevent the mismanagement of a large corpus, and lump sum + income, where a portion of the sum assured is paid as a lump sum, and the rest is converted into a monthly income. This flexibility ensures the family's financial security is well-managed.

Flexible Policy Tenure

Individuals can choose a policy tenure, usually between 5 years to 99 years, per their requirements. Higher tenures provide longer life cover to the applicant’s nominees but usually come with greater premiums.

Ease of Premium Payments

Insurers offer multiple, flexible, and NRI-friendly payment channels designed to be managed from anywhere in the world via their NRE, NRO, FCNR, or foreign bank accounts. They can also automate payments, which ensures that NRIs can pay their premiums on time and without hassle, preventing the risk of policy lapse due to payment complexities.

Addition of Riders for Enhanced Protection

NRIs can attach optional riders to their base term plan for 360-degree protection. This means riders create a comprehensive safety net that covers not just death but also major life-altering events, like providing a lump sum payment upon diagnosis of critical illness, death due to accident, and permanent disability, protecting the family's finances from being drained by medical costs or loss of income due to disability.

Options for Return of Premium

Applicants can also get a maturity benefit if they survive the policy term by opting for a return of premium rider. In this case, if they live past the policy tenure, the insurance company pays back the sum total of all the premiums paid as a survival benefit.

Minimal Documentation

Term insurance plans for NRIs require only a handful of documents. It generally consists of a copy of the applicant’s passport, identity proof, age proof, income proof, medical certificates, and application form.

Digital Process for Underwriting

For eligible NRIs, the mandatory medical examination can be conducted via a telephone call or a video conference with a doctor appointed by the insurer. This feature eliminates the need for NRIs to travel to India or even visit a physical clinic in their country of residence, making the purchase process convenient and fast.

Options for Special Exit

Term insurance plans for NRIs often come with a special exit option enabling policyholders to terminate the plan and get back all the premiums paid after a certain stage in their life. This is especially beneficial for those who are uncertain about their retirement age or when their dependents will become financially independent.

Premium Discount for Salaried Individuals

Salaried individuals can enjoy additional discounts of up to 20% on their term insurance premiums, making coverage more affordable while maximising savings. This exclusive benefit helps reduce the overall cost of protection and encourages long‑term policy continuity.

Online Purchase Discount

Get an extra discount on premiums when you buy term insurance online. As online applications reduce processing costs, eliminate paperwork, and streamline the buying journey, allowing insurers to pass the operational savings directly to you in the form of lower premium rates.

Why Should NRIs Buy Term Insurance from India?

Indian term insurance plans are usually 3-5 times cheaper than similar plans offered abroad and also have a very high claim settlement record of 98%+, making many NRIs see term plans as a smarter and more practical choice.

So it makes sense that their financial protection is also built in India. Here is why NRIs across the world prefer Indian term insurance plans:

1. Much Cheaper Premiums

In India, a 30-year-old non-smoker can expect to pay around ₹700-900 per month for a ₹1 crore term insurance cover. The same cover in countries like the USA or UK can cost ₹2,500-4,000 per month. Over the years, this means you save several lakhs by choosing an Indian plan.

2. Worldwide Coverage

No matter where you are, Dubai, London, New York, or Singapore your policy covers you globally. If something happens to you anywhere in the world, your family in India will receive the full claim amount.

3. High Claim Settlement Standards

Top Indian insurers, regulated by IRDAI, settle more than 98%+ of individual death claims. This data is publicly available and verified, giving confidence that your family will receive the payout when it matters most.

4. Fully Online and Convenient

You don’t need to travel to India. You can apply online, complete medical checks through a video call, and pay using your NRE/NRO account, all in about 30 minutes.

5. Easy Claims for Your Family

The entire claim process happens in India. Your family files the claim locally, the insurer processes it in India, and the payout is made in Indian Rupees, no foreign paperwork or currency conversion stress during an already tough time.

When Should NRIs Buy Term Insurance Plan?

Aim to buy term insurance as early as possible, ideally when you first start earning abroad, are in good health, and before life’s big milestones. This strategy secures low premiums, full coverage, tax perks, and smoother portability for your family’s financial safety.

Early in Your Career Abroad: Buying a plan as soon as you start working abroad locks in a lower premium (because you’re younger and healthier). It also ensures your family is protected from day one, even before major expenses arise.
Before Marriage or Starting a Family: Your financial responsibilities jump once you marry or have children. Getting term cover beforehand guarantees peace of mind, knowing your spouse and kids will be financially secure if anything happens to you.
Prior to Major Loans or Mortgages: If you’re taking a home loan or any large borrowing overseas, a term plan ensures debt repayment so your family won’t be burdened by EMIs in your absence.
When You’re in Good Health: Health conditions that develop later can raise premiums or lead to exclusions. Securing cover when you’re healthy locks in better terms and avoids complications down the road.
Before Savings & Investments Take Shape: Early insurance means low cost now, leaving more room in your budget for investing in retirement funds, children’s education, or property, without sacrificing protection.
When You’re Planning to Repatriate: If you intend to return to India eventually, choose a portable policy now. Buying early overseas prevents the hassle of underwriting again when you move back.

Riders/Add-ons Available with NRI Term Insurance

When you purchase an NRI term insurance plan, you can enhance your coverage by opting for riders, which are supplementary benefits available for an extra premium. These riders offer financial protection against specific unforeseen circumstances:

Accidental Death Benefit Rider

Accidental Death Benefit Rider is one of the most popular riders. If the insured person passes away due to an accident, this rider provides an additional sum assured to the nominee, over and above the base policy's death benefit. This can be particularly beneficial for NRIs who may face a higher risk of accidents depending on their occupation or country of residence.

Permanent and Partial Disability Rider

ATPD rider is an add-on to a term insurance policy that provides financial support if the policyholder becomes permanently disabled due to an accident. Unlike standard term insurance, which only pays a death benefit, the ATPD rider ensures that the insured and their family have financial security even if the insured survives but loses the ability to earn an income.

Terminal Illness Rider

If the insured is diagnosed with a terminal illness and is not expected to survive for more than a few months, the terminal illness rider provides a portion or the full sum assured in advance. This can help the policyholder manage their medical expenses and other financial obligations during a difficult time.

Eligibility Criteria to Buy NRI Term Insurance

The eligibility criteria to purchase term insurance for NRIs are:

Criteria	Details
Age	Minimum: 18 years; Maximum: 65 years
Non-Resident Indians (NRIs)	Indian passport holders residing abroad for 182+ days/year.
Persons of Indian Origin (PIOs)	Individuals of Indian ancestry who are foreign citizens (except Pakistan & Bangladesh).
Overseas Citizens of India (OCIs)	Those with OCI cards, Indian origin or A foreign national married to an Indian citizen.
Foreign Nationals in India	Foreign citizens residing in India.
Educational Qualification	Some insurers may require applicants to be graduates.
Income	Must have a steady source of income; proof required (e.g., salary slips, income tax returns).

Documents Required to Buy a Term Life Insurance Policy for NRIs

When buying a term life insurance policy for NRIs, you must provide several important documents. Here's a list of the key documents typically required:

Identity/NRI Status

Address Proof

Financial Proof

KYC & Age Proof

Medical Reports

How to Buy Digit Term Insurance Policy for NRI Online?

You can buy NRI term insurance 100% online in 5 simple steps, no visit to India needed. The entire process takes about 20 minutes.

Compare & Choose a Plan

Go to Digit's website or app. Enter your date of birth, income, and mobile number. Compare cover options and premium amounts.

Fill the Application

Share basic details such as your country of residence, health history, lifestyle habits, and nominee details.

Upload Documents

Upload your passport, NRE/NRO bank statement, salary proof, and address proof, all digitally, from your phone or computer.

Complete the Medical Check

No need to travel. Most NRIs can complete this via a 15-minute video call with a doctor. For higher cover amounts, a physical test may be needed at a local clinic in your country.

Pay & Get Covered

Pay your first premium from your NRE, NRO, or international bank account. Your policy document arrives on email and WhatsApp instantly. You can also access it 24/7 on the Digit App.

Complimentary Wellness Benefits for Digit Life Customers

At Digit Life, we believe life insurance should do more than just protect you from the unexpected; it should also help you live a healthier and happier life. That's why we offer Wellness Benefits to support your overall well-being. These programs are designed to improve your physical, mental, and emotional health through various resources and activities.

With Digit Life Insurance, you gain exclusive access to wellness perks that make living well more achievable and affordable. These benefits are part of our life insurance plans and aim to enhance your holistic health and wellness. Some of these great benefits include -

Unlimited 24×7 Teleconsultations with General Physicians

Get expert medical advice anytime, anywhere.

Mental Health Consultation & Services

Speak to top specialists in Mental Health, Women’s Health, Diet & Nutrition, and more, at flat 50%!

Diagnostic Tests & Health Check-Ups

Stay ahead of health concerns with affordable screenings and lab tests.

Specialist Teleconsultations

Speak to top specialists in Mental Health, Women’s Health, Diet & Nutrition, and more, at flat 50%!

Women's Health Care Programs

Pregnancy Care Programs, access to Mum Support Group, PCOS/PCOD Care Programs, Maternity Support and much more!

Physiotherapy Sessions

Stress and Pain relief covered with exclusive discounts on Physiotherapy consultation and session bookings.

Dental Consultation Offers

Avail unlimited, free dental consultations and exclusive discounts on dental treatments.

Sexual Wellness

Get flat 15% discount on Sexual Wellness Programs!

Chronic Care Support Programs

Personalised assistance for long-term health conditions.

How Does an NRI Term Insurance Claim Work?

Term insurance claims are handled directly by the insurance company and follow IRDAI rules. The process is simple:

The nominee informs the insurer about the death through the insurer’s official channels.
Required documents are submitted, including the death certificate, policy document, and nominee identity proof.
If the death happened outside India, the insurer may ask for an apostille certified or officially attested death certificate.
Once all documents are checked and approved, the insurer processes the claim.
The claim must be settled within 30 days after all required documents are received.

Term insurance claims do not involve courts, MACT, or tribunals, because this is a life insurance payout based on a policy contract.

Tax Benefits for NRI Term Insurance

1. Section 80C: Save on Premiums

If an NRI has taxable income in India, premiums paid towards term insurance may qualify for a deduction of up to ₹1.5 lakh per financial year under Section 80C of the Income Tax Act. This benefit does not apply if the NRI has no taxable income in India.

2. Section 10(10D): Tax-Free Payout

The death benefit received by the nominee is tax-free in India under Section 10(10D), provided the premium paid does not exceed 10% of the sum assured for policies issued after 1 April 2012.

3. DTAA: Double Taxation Avoidance Agreement

India has DTAA agreements with several countries. These help prevent the same income from being taxed in both India and the country of residence. Tax treatment outside India depends on the laws of the resident country. NRIs should consult a qualified tax advisor for personal applicability.

What NRIs Should Keep in Mind Before Buying Term Insurance in India?

Here’s what NRIs should consider before buying term insurance in India:

Ensure the policy is available for your country of residence.
Check if premiums and payouts are in INR or foreign currency, as conversion rates may apply.
Understand DTAA benefits to avoid double taxation on premiums and claims.
Verify if the death benefit can be repatriated to your country of residence.
Some insurers may require medical tests, which can be done locally or in India.
Consider ease of managing the policy online, especially from abroad.
Ensure nominees are aware of the claim process and required documentation.

Now, when choosing the sum assured for your term insurance for NRIs, it is customary to consider inflation. By doing so, you can ensure that even in the case of a significant price rise in the upcoming years, your loved ones will have enough to cater to their expenses stress-free. You can also use a term insurance calculator to determine the appropriate coverage amount.

If you're an NRI looking to safeguard your family's future, exploring term insurance plans can provide substantial coverage and peace of mind. Also, make sure to read the policy’s terms and conditions carefully. This will help you know what is not covered, so there are no surprises later.

FAQs about Term Insurance for NRIs

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What is term insurance, and why is it important for NRIs?

Term insurance enables the nominees of an insured individual to get a lump sum payout in case of the latter’s death within the policy period. Such plans are important for NRIs as they enable the policyholder’s loved ones to cover the expenses of living abroad, relocating back to the country, or any other cost without having to look for an immediate alternative income source.

Who is eligible to purchase term insurance for NRIs?

All applicants belonging to the category of Non-Resident Indian (NRI), Person of Indian Origin (PIO), or Overseas Citizen of India (OCI) (except Pakistan and Bangladesh) and aged between 18 years and 65 years are eligible to purchase term insurance for NRIs.

Can NRIs buy term insurance in India?

Yes, NRI, PIO and OCI applicants aged between 18 years and 65 years, and having a stable source of income are eligible to purchase term insurance for NRIs in India.

Can NRIs buy term insurance in India without visiting India?

Yes. NRIs can buy term insurance in India completely online, without visiting India. The application, document submission, medical check (via video call), and payment can all be done from your country of residence. Your policy document is delivered to your email within minutes.

Is term insurance cheaper in India than in USA, UK, or UAE for NRIs?

Yes. A ₹1 crore term insurance cover in India costs around ₹800-1,200/month. The same cover in the USA or UK can cost 3-5 times more. India's large population, competitive insurance market, and lower operational costs keep premiums low, making Indian plans the smart financial choice for NRIs.

What happens to my NRI term insurance if I return to India permanently?

Your policy continues without any changes. You just need to inform your insurer of your new address and residential status. Once you are back in India as a resident, your NRI policy converts to a regular resident Indian policy seamlessly, no need to buy a new plan.

Can NRI buy term insurance for parents in India?

You cannot buy term insurance for your parents naming yourself as policyholder, only the insured person can be the policyholder. However, you can financially support your parents in getting their own term or health cover in India, and they can name you as the nominee.

What happens if I miss a premium payment as an NRI?

Most insurers offer a grace period of 15–30 days after the due date. If you pay within this period, your policy stays active. If you miss beyond the grace period, the policy may lapse. You can revive a lapsed policy within 5 years by paying outstanding premiums plus interest. Set up auto-debit from your NRE/NRO account to avoid missing payments.

Can an NRI in a high-risk country still get term insurance from India?

Yes, but there may be a premium loading (extra charge) for NRIs residing in countries with high political risk, conflict zones, or higher mortality rates. Your insurer will confirm this based on your country of residence. Most standard NRI destinations like USA, UK, UAE, Canada, Australia, Singapore have no extra loading.

How does an NRI family file a claim if the policyholder passes away abroad?

Step 1: The nominee contacts the insurer via phone, email, or WhatsApp.
Step 2: Submit the death certificate (if abroad, an apostille-certified copy), original policy document, and nominee's ID proof.
Step 3: The insurer reviews and settles the claim, typically within 30 days. The claim amount is paid directly to the nominee's bank account in India.

Does Digit Life offer NRI term insurance?

Yes, NRIs can use their foreign income to pay for their term insurance premiums via settlement payment in foreign income, along with their NRE and FCNR accounts.

What are the tax benefits of term insurance for NRIs?

NRIs can avail a maximum tax deduction of ₹1.5 Lakh within a financial year under Section 80C on their term insurance premium payments. Also, the death benefit of such plans enjoys complete tax exemption under Section 10(10D) (subject to specific conditions).

How can NRIs pay premiums for their term insurance policies?

NRIs can pay term insurance premiums in India using their NRE (Non-Resident External) or NRO (Non-Resident Ordinary) bank accounts via net banking. They can also pay from FCNR accounts or through international credit/debit cards. Payments can be monthly, quarterly, half-yearly, or annual.

What documents are required for NRIs to apply for term insurance?

NRIs need their passport and visa for identity proof, NRE or NRO bank statement for financial proof, salary slips or employment letter for income proof, overseas address proof, PAN card for KYC, and medical reports or a video medical check. All documents can be submitted digitally.

Can NRIs add riders to their term insurance plans?

Yes, NRIs can add riders to their term insurance plans, such as waivers of premiums on disability, accidental death benefits, critical illness coverage, terminal illness benefits, and more.

Are there any restrictions for NRIs when choosing beneficiaries?

An NRI can assign any family member or any other member as a nominee to their term insurance plan without any restrictions. The individual can reside in India or any other country.

Can NRIs use their foreign income to pay for term insurance premiums in India?

Yes, NRIs can use their foreign income to pay for their term insurance premiums via settlement payment in foreign income, along with their NRE and FCNR accounts.

Are there any special features of term insurance specifically for NRIs?

Term plans for NRIs in India offer special features like pre-approved cover, global coverage with 24x7 claim assistance, tele/video medical check-ups, special exit options, and GST waivers.

Do NRIs need to be present in India to buy term insurance?

No, NRIs do not need to be present in India to buy a term insurance plan. They can easily apply for a policy via their preferred insurer’s website and opt for a tele/video medical check-up in the country in which they are residing.

Can NRIs purchase multiple-term insurance policies in India?

Yes, NRIs can buy numerous term insurance plans in India to increase their overall coverage.

What to do if I become an NRI after buying a term plan in India?

You simply need to inform the insurer and state the name of the country in which you will be residing. They will make the required changes in the policy papers.

What factors should I consider before purchasing term insurance for NRIs?

When purchasing term insurance for NRIs, you must consider factors like the policy duration, sum assured, and available riders and add-ons.

Are the maturity benefits of term insurance for NRIs taxable?

NRIs can enjoy a complete tax exemption on the maturity benefits of a term insurance plan with a return of premium rider under Section 10(10D). However, this exemption is subject to the policy’s terms and conditions.

Are medical check-ups mandatory for term insurance for NRIs?

Yes. Medical check-ups are mandatory in the case of term insurance for NRIs. However, thanks to tele or video-medical facilities, applicants can complete such requirements from the country where they reside.

Why do NRIs buy term insurance in India?

NRIs buy term insurance in India due to benefits like the availability of numerous insurers, lower premiums, pre-approved cover, global coverage with 24x7 claim assistance, tele/video medical check-ups, high claim settlement ratio, easy claim settlement process, GST waiver, additional discount on annual premium payments and options for special exit.

What happens when premiums for NRI term insurance plans are not paid on time?

You are given a grace period if you do not pay the premium for an NRI term insurance plan within the due date. If you fail to complete payment within this timeline, you must pay a late fee. Further delays in this regard can lead to a lapse of the policy.

Can I buy term insurance for NRIs even if I accept citizenship in another country?

Yes, you are eligible to buy term insurance for NRIs even if you accept the citizenship of another country. Under such circumstances, you must submit your OCI or PIO card while purchasing the policy.

Can I designate nominees outside India for my NRI term insurance plan?

Yes, term insurance plans for NRIs enable you to designate nominees residing in both India and abroad.

Will term insurance for NRIs cover my nominee even if they change countries?

Yes, your term insurance for NRIs continues to cover your nominees, even if they relocate to a different country.

Can OCI/PIO card holders purchase term insurance for NRIs in India?

Yes, citizens of foreign countries (except Pakistan and Bangladesh) who have an OCI/PIO card, formerly possessed an Indian passport, had parents or grandparents who were Indian citizens as per the Indian Constitution or the Citizenship Act of 1955 or are a legal partner or spouse of an Indian citizen can purchase term insurance for NRIs in India.

How to minimise paperwork when buying term plan from overseas?

To reduce paperwork, choose an insurer with a digital application process. Complete online forms, submit scanned documents, and opt for video or telemedical verification if available. Using an insurer with a robust online portal can make the process smoother and faster.

Is the death benefit from term plans for NRIs applicable globally?

Yes, the death benefit for the term insurance plan for NRIs is applicable irrespective of which country the policyholder was present at the time of their demise.

Can I buy term plan to cover death logistics abroad?

Most term plans pay a lump sum on death, regardless of location, but do not cover repatriation or funeral logistics abroad. You may need a separate travel or expatriate insurance policy for such expenses. Always check policy terms for international coverage and exclusions.