loaderImage
loaderImage
Back Back

Active Segment

Newbie Explorer Policyholder

I am an NRI, can I buy term insurance?

10 Jan 23      |       | ShareShare Share Blog Or copy link Copy Share this link via

Authored by: Anurag Ainapurapu
Reviewed by: Krupa Kenia

The Long Read


Everything you *need to know* about term insurance for NRI is right above this. Scroll down, only if you'd still like to read more (honestly, why?)

Yes, you can buy term insurance from an Indian insurer either when you visit India or from your resident country.
 

What’s interesting is that you don’t have to pay more for your term insurance just because you are an NRI. Your premiums will be similar to a resident Indian if the risk involved is similar. 
 

That means if your insurer assesses your applications and determines that factors such as age, health, occupation and medical history, etc. are not putting you at a higher risk of death compared to a resident Indian, then you will be charged a premium that is similar to a resident Indian. 
 

Know more about factors impacting term insurance premium.

Yes, some insurers may deem certain countries as risky due to a high possibility of certain risks (such as wars, terrorist attacks, riots, public health concerns, safety concerns, etc.) and may not offer term insurance policies if you are an NRI living in one of those countries.
 

This is because as a resident of such a country, you’re at a higher risk of death due to the factors mentioned above, than if you were living in some other country. 
 

Term insurance application rejected ? Find out more about the factors that can cause the denial of your term plan application.

No, not necessarily. Here’s why:

 

See, an insurer charges premiums based on individual cases and on multiple factors like age, health, gender, medical history, income, occupation, hobbies etc. Find out the factors that influence the term insurance premium increase. The premiums for any two individuals will not change because of their residential status. 

 

Therefore, the premiums you will pay for your term insurance will be similar to a resident Indian if the risk involved is similar. That is, if your insurer assesses your term insurance application and determines that you are not at a higher risk of death compared to a resident Indian, then you will be charged a premium that is similar to a resident Indian. However, NRIs are not charged GST over the premiums.

As an NRI, if you want to buy term insurance during your visit to India, you will need to undergo a term insurance buying process like a resident Indian. 

 

You need to do the following: 

 

  • Apply for a term insurance plan with an Indian insurer, either online or offline

  • Declare your country of residence 

  • Complete the application form 

  • Submit the following documents: 

    • ID proof

    • Age proof

    • Address proof

    • Income proof

    • Medical proof

    • Photographs 

    • Any other additional documents asked by the insurer

    • Submit the term insurance application form

    • Undergo the required medical tests  

 

After successful submission of your application and necessary documents, your insurer will typically get back after around 15 days. Find out about term insurance waiting period and the typical time it takes to get the term policy.

 

Also, if you are on your visit to India, you can pay for the term insurance there itself, either offline (through whichever method your insurer accepts) or online.

As an NRI, if you want to buy term insurance while in your resident country, the process for the same has certain steps. 

 

 You need to do the following: 

 

  • Apply for a term insurance with an Indian insurer, either online or offline

  • Declare your country of residence 

  • Complete the application form 

  • Submit the following documents: 

    • ID proof 

    • Age proof

    • Address proof

    • Income proof

    • Medical proof

    • Photographs 

    • Any other additional documents asked by the insurer

  • Submit the term insurance application form

  • Undergo the required medical tests for the term insurance 

 

After successful submission of your application, your insurer will typically get back after around 15 days. 

 

Now, you may wonder how to pay for the term insurance while you are in your resident country. If you want to pay offline for your term insurance, then you  have to make the payment through a mail order, which requires verification by 

 

  • A notary

  • An Indian diplomat

  • The Indian embassy

 

If you want to pay online for your term insurance then you can make the payment as a  remittance through a Non-Resident Ordinary (NRO) bank account or a Non-Resident External (NRE) bank account.



Additional note: If you are an Indian student studying abroad, you too can buy term insurance from your resident country, provided that you:

 

  • Are 18 years and above 

  • Have an income proof

  • Are an Indian citizen/NRI/PIO

 

You can ask your university dean for help if you want to pay for your term insurance via a mail order. 

You may need to pay for the medicals in this case. It is better to always check with your insurer on this.

You are eligible to buy a term insurance if: 

 

  • You are 18 years and above 

  • You have an income proof

  • You are an Indian citizen - resident/PIO/NRI
     

Click to know more about term insurance eligibility.

Yes, your term plan application can get rejected even if you are eligible to get a plan or have followed all the processes. Know more about circumstances that can lead to term insurance rejection.

 

The following factors can result in the rejection of your term plan: 
 

  • Specific health issues

  • Age

  • Hazardous occupation

  • Dangerous hobbies

  • Poor lifestyle choices 

  • Income limitations

  • Past criminal record 

  • Previous application declines

  • Falsifying information

  • History of declined applications

If you are in your resident country and want to pay for the premiums offline, then you  have to make the payment through a mail order, which requires verification by: 

 

  • A notary

  • An Indian diplomat

  • The Indian embassy

 

If you are in your resident country and want to pay online for your premiums, then you can do so as remittances through a Non-Resident Ordinary (NRO) bank account or a Non-Resident External (NRE) bank account.

 

If you are on your visit to India, then you can pay offline (through whichever method your insurer accepts) or pay online.

Whether you get tax benefits on term insurance or not will depend on the relevant prevailing laws of your resident country.

callIcon1800-268-0890
callIcon
Post a Query
We’ll be in touch, soon!

We will send you an email as soon as our experts have an answer for you.

Thanks for reaching out to us!

Don’t worry about keeping track of your query. We can send you an email to let you know when your query is answered! (And no, we won’t spam you with irrelevant stuff…)

We’ll be in touch, soon!

We will let you know as soon as our experts have an answer for you.