- What Is an NRI Term Insurance Plan?
- Features of NRI term insurance
- Key Benefits of NRI Term Insurance?
- Why should NRIs purchase a term plan from India?
- Why Choose the NRI Term Insurance Plan Offered by HDFC Life?
- What are the Riders* Offered with NRI Term Insurance?
- How Do Term Insurance Plans For NRI Work in India?
- Why Sum assured is an Important Factor When it Comes to Term Insurance?
- When should an NRI buy a term insurance plan?
- Can NRIs Buy Term Plans in India?
- What are the Documents Required for Term Insurance Plans for NRIs in India?
- Who is Eligible to Buy Term Insurance for NRIs in India?
- How to Buy NRI Term Insurance from Abroad or While in India?
- How can NRIs in India claim term insurance in 2025?
- FAQs on Term Insurance for NRIs in India
- Talk to an Advisor
- Share your Valuable Feedback
- Popular Searches
- Disclaimer


What Is an NRI Term Insurance Plan?
An NRI term insurance plan is a life insurance policy designed for NRIs to protect their family’s future. These plans provide a sum assured to nominees after the policyholder’s death.
Term insurance for NRI in India allows individuals to select a customised sum assured, pay premiums online , and provide flexibility in payout modes. Payout modes can be lump sum or instalments to suit the needs of beneficiaries in India or abroad.
Some insurers may also allow premium payments from NRE/NRO bank accounts or international remittances, making the process more convenient for policyholders. Therefore, all features of such term plans are applicable depending on the insurer’s rules.
Consider an NRI working in Dubai who buys a ₹1 crore term insurance plan in India. If something unfortunate happens, their family in India may receive a lump sum amount, which will help them financially.
They can easily repay their outstanding loans, cover the expenses of their children’s education or marriage, or simply pay for regular expenses. .
Features of NRI term insurance
While the term plan for NRI is similar to the resident term plans, it has distinct features, given below:
Flexible Premium Payment from Abroad
Choose the Right Sum Assured
Flexible Policy Terms
Tax Benefits
This feature of term insurance for NRI makes it easier to pay premiums from anywhere in the world. This is because policyholders can use NRE, NRO, accounts to transfer funds directly.
Many insurers also accept international credit cards, debit cards or online remittances, ensuring seamless transactions for paying the premium of their term insurance policy. NRIs can select to pay the premium either monthly, quarterly, half-yearly, or annually, based on their convenience.
In some cases, currency conversion charges may apply, so NRIs should check the applicable exchange rate rules with their bank or insurer.
The sum assured is the most important feature of a term life insurance for NRIs. This is because it determines the financial support your family will receive.
NRIs should calculate this based on their current income, outstanding loans, children's education costs, and dependents' lifestyle expenses in both India and abroad. You should use a term insurance calculator to calculate an accurate coverage amount that balances between affordability and long-term financial security.
Depending on your existing assets, liabilities and expenses, NRIs can choose the coverage amount for term insurance for parents that is likely to be enough for their family's financial future.
NRI term insurance offers a wide choice of policy durations. Therefore, depending on your financial goal, you can select a short, medium or long-term cover, or even opt for whole-life cover with some insurers.
Aligning the term plan features with your personal financial goals ensures that your loved ones remain protected during crises. Hence, having flexible policy terms will allow you to convert to different term plans or renew existing plans.
Premiums paid for NRI term insurance are eligible for deduction under Section 80C1 of the Income Tax Act 19611, while policy proceeds are usually tax-free under Section 10(10D)1. However, GST may apply to premiums, depending on the insurer.
Since taxation rules differ across countries, especially for NRIs with dual obligations, it is advisable to consult a qualified tax advisor to understand cross-border tax implications and ensure compliance with applicable laws.
Key Benefits of NRI Term Insurance?
Here are the different benefits of a term insurance for NRIs:
Financial Security for Family in India or Abroad
Peace of Mind Across Borders
Protection Against Currency Fluctuations
Seamless Claim Settlement in India
Flexibility to Add Coverage Enhancements
Tax Efficiency for Indian Income
The major benefit of NRI term insurance is the financial safety net it creates for your loved ones. In case of the policyholder’s death, the insurer provides a lump sum payout to beneficiaries.
This amount can be used to repay home loans, cover children’s education expenses, or cover daily expenses regardless of where the family resides.
Living abroad often comes with uncertainties for different reasons, such as job instability, health risks or costly living standards. Therefore, purchasing an NRI term insurance in India will give you peace of mind, knowing your family’s finances will remain secure even if something unfortunate occurs while you are outside India.
This cross-border assurance is crucial, especially for those frequently travelling between countries.
A significant challenge for NRIs is the instability of foreign exchange rates. With a fixed payout for NRI term insurance in India, beneficiaries are protected from sudden fluctuations in the foreign currency values.
In addition, this ensures families receive consistent financial support without being affected by exchange rate volatility. It can negatively impact your financial planning and wealth accumulation, highlighting the importance of buying term insurance with a fixed payout as a safer option.
Another major benefit of term insurance for NRIs is the ease of claim settlement in India. Nominees do not need to navigate foreign legal or financial systems. Instead, they can file claims directly with the insurer in India.
Consequently, this will ensure a faster and hassle-free process during a crisis. A desired claim settlement ratio is above 95% indicating a high payout by the company for the claims filed.
A flexible NRI term insurance allows policyholders to customise their policy by adding riders. Such additional features include accidental death, critical illness, or permanent disability.
With these add-ons, protection is ensured for individuals depending on their risk profiles. Furthermore, increasing existing coverage limits is possible with flexible term insurance policies for NRIs, depending on their changing needs and situations.
Investing in term insurance for NRIs can be beneficial because of the tax advantages under the Income Tax Act. Here are the different applicable tax provisions applicable to NRIs buying term insurance in India:
Section 80C1: Premiums paid towards term life insurance are eligible for deduction under this section up to ₹1.5 lakhs.
Section 10(10D)1: The insured sum received by the policyholder’s family is exempt from taxation.
Tax Deducted at Source (TDS) Applicability: TDS applies to payout amounts under the term life insurance for NRIs which are not exempt under Section 10(10D)1.
Why should NRIs purchase a term plan from India?
NRIs should purchase a life insurance policy from India to secure their family’s financial future for several reasons. Some of them are:
A Large Number of Insurers Available in India
A large number of players in the market offering term insurance for NRI promote competition. Customisable premiums, flexible payment options, better features, and service are the advantages. They can avail of a tailored plan with customisable amounts to suit their specific needs. They can get complete coverage with flexible options for their family’s financial security.
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Pre-approved cover
The sum assured for the term plan for NRI is determined at the time of purchasing the policy without any of the mandatory requirements like medical check-ups, proof of income, KYC, etc. It makes the whole insurance buying process seamless and straightforward without the need for elaborate documentation.
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Worldwide Cover With 24x7 Claim Assistance
Under the term insurance for NRI, the insured is eligible for coverage worldwide without restriction on country of residence. Claims can be raised from any corner of the globe. The assurance that the family can apply for the claim without any bar on time zone or location gives the insurer peace of mind.
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Tele/Video Medical Check-ups Video or Tele Medical Check-up
To purchase the term insurance for NRI, the prospective buyer does not need to be in India. Medical check-ups can be done online by making a call with the doctor instead of a physical examination. Details like existing health issues, family medical history, and prescription medicines for the existing condition have to be declared during the conversation. Suppression of information during the policy purchase can result in rejection of claim settlement.
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Claim Settlement Ratio
This is a very important factor to be considered while purchasing a term insurance plan for NRI. Claim settlement ratio reflects an insurer's reliability, indicating the percentage of claims paid. Higher ratios suggest trustworthiness when choosing or renewing an insurance policy.
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Easy Claim Process
The claim process for term insurance for NRI in India will be more straightforward in case of the death of the policyholder. The beneficiaries need not travel to the country of residence for claim settlement. It can be done in India which makes the whole process simple and seamless.
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Low Premium Rates
Non-resident Indians can avail themselves of the best term insurance plan for NRI at much more affordable rates than international term insurance plans. It will be around 50% to 60% less than the international term plans.
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Special Exit Options
Generally, term insurance plans offer life coverage for a specific period, and if the policyholder survives the term, no benefits or returns are provided. However, the special exit options available in term insurance for NRI give the benefit of returning all the premiums paid if the policyholder exits the policy before maturity.
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GST Refund
If the NRIs pay the premium for the term plan through an NRE account in easily convertible currency or through Foreign inward remittance certificate, according to Government of India guidelines, they are eligible for the 18% GST Refund by providing required documents such as Tax~ residency certificate for NRIs, address proof of the foreign country of residence, NRE account statement and such other documents as required, Extra Discount On Annual Payment Method
Instead of paying the premiums in monthly instalments, if the policyholder opts to pay the premiums for the best term insurance plan for NRI, he/she is eligible for a discount on the premium payable. The discount percentage extended depends on the insurance provider chosen.
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Why Choose the NRI Term Insurance Plan Offered by HDFC Life?
Term insurance for NRI in India offered by HDFC provides extensive coverage and ensures financial security for the policyholder’s family, even when living abroad. The flexibility of premium payments and policy tenure is an added advantage. NRIs can consider their family’s future needs and monetary objectives to decide the sum assured. They are eligible for term insurance tax benefits under Section 80C and Section 10(10D) of the Income Tax Act 1961, making the plan economical.
The add-on* benefits like critical illness riders and accidental death benefit riders enhance the coverage. With the facility to apply for the term plan online and global protection, it provides peace of mind to NRIs, it is a reliable and accessible option for the security of their family’s future.
What are the Riders* Offered with NRI Term Insurance?
The riders offered with term plan for NRI are:
Accidental Death Benefits
NRIs can opt for add-ons* such as accidental death benefit riders to the base plan. An additional payout along with the death benefit in case the policyholder dies in an accident enhances financial protection.
Terminal Illness Benefits
The terminal illness benefits riders* added to the term insurance for NRI provide a lump sum payout if the policyholder is diagnosed with a terminal illness.
Cover Against Critical Illness
By opting for critical illness, riders* Non-Resident Indians (NRIs) get coverage against critical illnesses like heart disease, kidney failure, cancer, etc. The insurer provides a pre-determined lump sum if the policyholder is diagnosed with any of the critical illnesses listed under the plan.
Waiver of premiums on Disability
Adding the waiver of premium on disability riders to the base plan will help if the policyholder is permanently disabled due to an accident and loses a job during the policy term. The future premiums will be waived while keeping the policy active.
How Do Term Insurance Plans For NRI Work in India?
For NRIs, term insurance plans in India work in the same way as regular term plans. There is no big difference that can become a cause of worry for NRIs. When the policyholder keeps paying the NRI term insurance premium in a timely and full manner, the assured sum is given to the nominee if the policyholder dies during the tenure of the Life Insurance for NRI Policy. Also, if the policyholder survives the tenure of the insurance policy, NRIs may choose the return of premium (ROP) option, in which the entire amount of premium payment is returned to the NRI policyholder at maturity. Furthermore, NRIs can expand the coverage of their plan by adding more optional riders or add-ons.
Why Sum assured is an Important Factor When it Comes to Term Insurance?
Choosing the right sum assured in your term insurance plans is essential for your family's financial security. This sum provides crucial protection in case of unexpected events, giving you peace of mind. A higher sum ensures your loved ones are well-supported, covering debts, education costs, and income replacement. Selecting the right amount is key to ensuring their future is secure. To explore the best term life insurance options and find the ideal sum assured for your needs, click the tabs below.
When should an NRI buy a term insurance plan?
One of the most common sum assured preferred among term insurance buyer is 1 crore. Premium for term insurance increases with age thus it is recommended that as an NRI you opt for a term plan as early as possible to avoid high premiums. You can also opt for additional rider like critical illness and term insurance with return of premium -
Age |
Policy Term |
Monthly Premium (Rs.) |
Monthly Premium with Critical Illness Rider (Rs.) |
Monthly Premium for Return of Premium option (Rs.) |
20 |
40 |
692 |
711 |
1581 |
30 |
40 |
1176 |
1286 |
2592 |
40 |
40 |
2343 |
2885 |
4775 |
Disclaimer – ...Read More
Can NRIs Buy Term Plans in India?
Yes, they surely can. If they meet the relevant term insurance eligibility criteria set by a life insurance company, non-resident Indians (NRIs) can indeed be eligible to buy term insurance in India to secure their family’s financial future with the assured cover.
What are the Documents Required for Term Insurance Plans for NRIs in India?
When applying for an NRI term insurance plan, you will need the following documents:
Mandatory Documents
Valid Passport:
A valid passport must be submitted with clear records of entry and exit to all countries visited.
Visa Copy:
This document must contain the personal details, visa details and other relevant information, such as photo, signature and transaction reference numbers.
Proof of NRI Status (Overseas Citizenship of India (OCI)/ Person of Indian Origin (PIO) card if applicable):
These cards acknowledge the current foreign citizenship of Indians residing abroad.
Address Proof (India or Overseas):
Acceptable documents as proof of address for NRIs include Valid passports, driving licenses, voter IDs, and Aadhaar cards (for Indian addresses) or any other government-approved document. Overseas address proof can include overseas bank statements, utility bills, or rental agreements.
Income Proof:
Documents like the latest salary slips, Income Tax Return (ITR), bank statement, or passbook.
Recent Passport-size Photographs:
Ascertain the picture format and number of photos required with the insurer before submitting.
If Applicable
Medical Test Report:
Based on the insurer’s requirements, you need to submit past and present medical reports.
Tax Residency Certificate (TRC):
This document is required to be submitted to ensure your tax residency status in India and the foreign country.
Additional Financial Documents:
The insurer may request any additional documents required for completing the KYC.
Note: The tax authorities in India issue the TRC once you fill out and submit an application using Form 10FA.
Who is Eligible to Buy Term Insurance for NRIs in India?
Individuals eligible to invest in term insurance plans for NRI are:
Non-Resident Indians
NRIs holding a valid Indian passport can purchase term insurance plans in India, provided they meet the minimum age of 18 years. Moreover, they must not exceed the insurer’s maximum entry age, which is generally limited between 60 and 65 years.
Persons of Indian Origin (PIO) and Overseas Citizens of India (OCI)
Individuals with PIO or OCI are eligible to buy NRI term insurance. However, they must meet the age and health requirements. Moreover, they must provide proof of their overseas residency along with supporting documents.
Former Indian Passport Holders
Those who once held an Indian passport but have converted to foreign citizenship are also eligible under specific categories listed by the insurer. If they wish to purchase a term life insurance policy, the necessary and relevant documentation must be submitted. Citizens of Bangladesh and Pakistan are not included under this condition.
Ancestral Connection
Some insurers extend eligibility to buy a term plan for NRIs to individuals with Indian ancestry, provided they submit valid documents. However, individuals from Bangladesh and Pakistan are not considered under this eligibility condition.
OCI Eligibility for Spouses of Indian Citizens
A foreign national married to an Indian Citizen comes under the OCI category.
How to Buy NRI Term Insurance from Abroad or While in India?
You can easily buy term life insurance for NRI from abroad or while in India, following the simple steps given below:
While in India
If you are currently residing in India and want to buy a term insurance for NRI, here are the steps you need to follow:
Apply online through HDFC Life or click the ‘Resume Application’ button visible at the top.
Complete the eKYC using your Aadhaar, PAN, and passport details.
Submit required documents (passport, visa, income proof, and address proof).
Undergo medical tests at insurer-approved centres in India.
Pay premiums via NRE/NRO accounts, debit/ credit cards, or net banking.
Receive the policy issuance confirmation once the verification is complete.
Staying Abroad
Buying the best term insurance plan for an NRI is also possible if you are staying abroad. Simply follow the steps below:
Visit the HDFC Life portal and complete the online application.
Upload the scanned versions of the required documents. These include:
Passport
Visa
Income Proof
Address Proof
Complete the eKYC process.
Medical tests can be arranged with partner labs abroad.
Make the payment through international cards, NRE/NRO accounts, or remittances.
Note: Some insurance companies may restrict the application for an NRI term insurance in India due to compliance rules or high risk involved.
How can NRIs in India claim term insurance in 2025?
The claim process for term insurance for NRIs provides support to their families regardless of the policyholder’s place of death. Here are the detailed steps for NRIs to claim term insurance in India in 2025:
Step 1: Notify the Insurer
Step 2: Submit the Death Certificate
Step 3: Provide Required Documents
Immediately notify the insurer online or through the customer service team about the policyholder’s death.
If the death has occurred outside India, the death certificate must be attested by the Indian Embassy/Consulate. If the certificate is in a language other than English, it must be accompanied by an official English translation.
The required documents must be uploaded and submitted to the insurer’s portal. Otherwise, couriering the hard copies to India is also a viable option for the NRI term insurance claim amount. This must include the following documents:
Policy Documents
Claimant’s ID Proof
Bank Account Details
Medical Records (if applicable)
Step 4: Claim Verification
After submitting the documents, the insurer will conduct a verification for any fraud or misrepresentation of information. Additionally, they will verify with the overseas authority to ensure the originality of the documents.
Step 5: Ensure Payout Timelines
Once the verification is completed, insurers will release the funds within 15 days which do not require any investigation, and 45 days for Claim which requires an investigation. It is payable to the nominee in Indian currency through a direct transfer to an Indian bank account.
FAQs on Term Insurance for NRIs in India
Is NRI eligible for term insurance?
Yes of course. NRIs are eligible for term insurance in India if they fit into the eligibility criterion of big insurers in India such as HDFC Life. NRIs who fall into the required age bracket and provide the relevant documents and forms are eligible for buying term life insurance in India in 2025.
Does the NRI need to be present in India while buying a term insurance plan?
No, it is not usually necessary for NRIs to be physically present in India to buy term plan. Many insurers offer the facility wherein NRIs can buy term life insurance while living abroad. In such cases, NRIs are required to purchase the policy through mail order. The process necessitates that an Indian diplomat and a notary verify the NRI.
Can NRI continue term insurance in India?
If you had earlier bought the best term plan in India and then went abroad and became an NRI, you can still continue with the existing term insurance. To be sure about it, contact your insurance provider to enquire if they can keep your existing term insurance plans for NRI active. Generally, most insurers allow NRIs to continue with the term plan purchased in India.
Why do NRIs invest in insurance in India?
NRIs who are living far away from their family and wish to secure their financial future, choose to invest in 1 crore term insurance in India. Investing in this type of NRI term insurance for your family residing in India not only helps secure their future through the assured cover amount but also enables NRIs to live with mental peace, knowing their family’s financial future is not in jeopardy.
What are NRE and NRO accounts for Non-Resident Indians?
For NRIs, the NRE (Non-Resident Rupee) account is an Indian rupee-denominated account which offers complete security. NRE accounts can be in the form of savings, recurring deposits, current accounts, or FDs (fixed deposits). The foreign currency you deposit into the NRE account is converted to Rupees.
On the other hand, NRO (Non-Resident Ordinary Rupee) account is a savings or current account held by NRIs to handle the income earned in India. NRO account-holders can both deposit and handle their accumulated rupee earnings easily. But keep in mind that the NRO account enables you to receive funds in both Indian and foreign currency.
What happens to insurance when you become NRI?
If you report to the insurer in writing about the change in status, the plan may remain the same or be modified according to the country of residence in the case of a term insurance plan. However, in the case of a life insurance plan, the life cover will remain the same irrespective of your geographical location.
Can OCI take term insurance?
Yes. An OCI can buy term insurance in India. The term plan serves as a financial safety net for the policyholder’s family when they pass away.

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***Online Premium for Life Option for HDFC Life Click 2 Protect Supreme(UIN:101N183V01), Male Life Assured, Non-Smoker, salaried, 20 years of age, Policy term of 25 years, Regular pay, Monthly frequency, inclusive of 15% online discount (applicable only for 1st year premium) & exclusive of taxes and levies as applicable. (Monthly Premium of 573/30=19).
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~Tax benefits of ₹ 54,600 (₹ 46,800 u/s 80C & ₹ 7,800 u/s 80D) is calculated at highest tax slab rate of 30% on life insurance premium u/s 80C of ₹ 1,50,000 and health premium (Critical illness rider) u/s 80D of ₹ 25,000. Tax benefits are subject to conditions under section 80C, 80D, 10(10D) as per Income Tax Act, 1961. Please consult your tax advisor for more information.
3. Tax benefits are subject to conditions under section 80C, 80D, 10(10D) as per Income Tax Act, 1961, and are subject to changes in tax laws.Please consult your tax advisor for more information.
*Add-Ons / Riders are subject to payment of additional premium.
15. HDFC Life Click 2 Protect Ultimate(UIN: 101N179V01) A Non-Linked, Non-Participating, Individual, Pure Risk Premium/Savings Life Insurance Plan. The policy must be in force on the date of death, with all premiums fully paid, except for the exclusion clauses mentioned in Part F of the policy document.
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