If you are an NRI with major financial liabilities in India, buying a life insurance policy here can be an effective way of protecting those obligations. Indian insurers allow NRIs to buy life insurance, but the process involves additional KYC, underwriting and payment requirements compared with resident Indians.
Here is what NRIs should know before buying a life insurance policy in India.
NRIs can buy life insurance in India, but additional documentation may be required
NRIs can purchase life insurance in India, subject to applicable regulations and the insurer’s underwriting guidelines.
“The process is broadly similar to that for resident Indians, with additional KYC requirements such as proof of overseas residence, passport, TIN/SSN and income details, where applicable,” says Kamlesh Rao, MD & CEO, Aditya Birla Sun Life Insurance.
Depending on the insurer and the applicant’s profile, additional documentation can include a passport, overseas address proof, FATCA/CRS declarations and a standard NRI questionnaire.
The insurer may also ask for details about the applicant’s occupation, country of residence and source of income, particularly when a high sum assured is sought.
Buying an NRI term plan can even be done remotely
An NRI does not necessarily have to travel to India to complete the entire purchase process.
Many insurers now offer digital application journeys and, in some cases, virtual tele-medical examinations through video calls.
“Some insurers let you complete the whole thing remotely from abroad, while others prefer you do it in person during a visit to India,” says Sarita Joshi, Head of Health and Life Insurance, Probus.
Whether a medical examination can be completed remotely depends on the insurer, the applicant’s country of residence, age, health profile and the sum assured being sought.
“Premiums usually get paid through NRE, NRO, or FCNR accounts or other approved channels, and since the policy is issued in rupees, it’s worth thinking through how currency fluctuations might affect things over the years,” explains Joshi.
NRIs should also remember that an Indian policy is generally denominated in rupees unless a foreign-currency policy is specifically offered. This makes the impact of exchange-rate movements an important consideration when planning long-term premiums and future financial needs.
Does the NRI’s country of residence affect premiums and underwriting?
The country where an NRI lives can influence the underwriting process and, depending on the insurer, the premium, medical requirements, sum assured or availability of cover.
“Insurers evaluate country-specific considerations such as geopolitical stability, healthcare standards, occupation-related risks, and local regulations, which may influence medical requirements, premium rates, acceptance terms, or available coverage,” says Rajesh Krishnan, Chief Operations & Customer Experience Officer, Bajaj Life Insurance.
According to Joshi, underwriters officially classify countries into different risk zones (ranging from Zone 1 to Zone 4). They look at the general risk profile of the country you’re based in, your occupation, local political stability, and how good the regional medical infrastructure is.
For example, someone in a stable office job in a low-risk country (Zone 1) will sail through underwriting. On the other hand, living in a high-risk zone or having a high-stakes job like oil rig engineering could lead to automatic premium increases, reduced coverage limits, or even the insurer deciding to defer or deny coverage for that particular profile.
Therefore, two NRIs living in the same country can still receive different quotes or underwriting decisions based on their age, health, occupation, income, and other risk factors.
