Contact Us
Login
Customers
Employees
Partner
Tax Benefits#
Valuable financial protection for your family
Return of Premium (ROP) Option^
Francis Rodrigues has a decade long experience in the insurance sector, and as SVP, E-Commerce and Digital Marketing, HDFC Life, manages the online sales channel, as well as digital and performance marketing. He has had hands-on experience in setting up sales channels and functional teams from scratch over a career spanning 2 decades.
NRI life insurance is a specialised insurance policy created to meet the unique needs of Indians living abroad. It works just like a resident Indian policy but includes added flexibility for global situations, covering families both in India and overseas.
In case of the policyholder’s death, the nominee receives the sum assured, which can help cover living costs, debts, or major life expenses. These plans are approved and monitored by regulatory ensuring transparency, secure claim settlements, and regulatory compliance.
For example, an NRI living in Dubai can buy a term plan in India to provide financial security for their parents residing in Mumbai. Many of these plans also offer flexible premium payments through NRE/NRO accounts, tax benefits under Sections 80C and 10(10D) of the Income Tax Act, 1961, and the ability to manage the policy entirely online, making them convenient, compliant, and globally supportive.
Yes. Under the Foreign Exchange Management Act, 1999 (FEMA) and IRDAI regulations, NRIs are fully eligible to purchase life insurance policies in India. These rules ensure that Indians living abroad can legally secure financial protection for their dependents in India or overseas.
You do not need to be physically present in India to buy a policy; most insurers allow you to complete the process online through digital KYC, virtual medical examinations, and secure payment portals. This makes it possible to compare plans, submit documents, and receive approval without travelling back home.
The following list of documents is necessary at the time of purchasing life insurance for an NRI:
Document Type |
Requirements / Options |
Photograph |
Passport Size Photo |
PAN Card Copy |
|
ID Proof |
|
Income Proof |
|
FATCA (Foreign Account Tax Compliance Act) Form |
Duly filled & signed form |
ECS / SI Mandate |
|
Address Proof |
|
Passport Copy |
|
NRI Questionnaire |
Duly filled & signed questionnaire |
For premium payments and claim settlements, NRIs can use NRE (Non-Resident External) for currency conversion ease. This ensures that both premiums and payouts are processed smoothly, regardless of where you are in the world.
A Non-Linked, Non-Participating, Individual, Pure Risk Premium/Savings Life Insurance Plan
UIN: 101N183V01
Get back all premiums paid on survival till maturity with Return of Premium9 option
Option to choose increasing Death Benefit up to 200% under Life option
Option to vary your Death Benefit according to your need under Life Goal option
Get additional amount payable in case of accidental death10 during policy term
In this policy, the investment risk in investment portfolio is borne by the policyholder. The linked insurance products do not offer any liquidity during the first five years of the contract. The policyholder will not be able to surrender or withdraw the monies invested in linked insurance products completely or partially till the end of the fifth year.
A Unit Linked Non-Participating Individual Life Insurance Savings Plan that addresses your long-term savings needs and also provides you protection in the form of a life cover
UIN: 101L175V08
An Individual Non-Linked Non-Participating Savings Life Insurance Plan
UIN: 101N165V13
A single premium non-participating and non linked annuity plan with single or joint life cover option to plan the financial security of 2 people
UIN: 101N118V13
In this policy,the investment risks in the investment portfolio is borne by the policyholder
A Unit Linked, Non-Participating Individual Pension plan that ensures you have a regular income and lead an independent life without compromising the standard of living after you retire
UIN: 101L164V07
Avail of Automatic Asset Re-balancing and Systematic Transfer strategies to safeguard your wealth against market volatilities.
Life insurance from Indian insurers is not limited to residents. Several categories of individuals, including those living abroad, are eligible, provided they meet certain documentation and regulatory requirements. Below is a simplified eligibility reference:
Category |
Eligibility |
Notes |
Resident Indians |
Yes |
People who have proof of residence in India |
NRIs (Non-Resident Indians) |
Yes |
People living abroad can purchase a policy from Indian insurers online or offline. |
PIOs (Persons of Indian Origin) |
Yes |
PIOs and card owners are eligible |
Foreign Nationals |
Conditional |
Foreign nationals may be eligible on a case-to-case basis, subject to insurer approval and valid long-term visa. |
OCIs (Overseas Citizens of India) |
Yes |
OCIs can purchase life insurance similar to NRIs |
Tourists/short-term visitors |
Not applicable |
Not eligible for life insurance provided by the Indian insurers |
At the time of purchasing a life insurance policy for an NRI in India, it is essential to meet the eligibility criteria. Go through the following:
Age is a significant factor to consider when purchasing insurance for an NRI. Ideally, individuals within the age range between minimum age 18 and maximum age between 60- 66 are eligible. However, younger individuals can purchase policies at lower premiums since their health risks are lower.
While purchasing life insurance for NRI, having a valid address proof, passport, a visa or a residence permit, income proof, and medical reports are crucial. Moreover, during claim settlement, claimants have to submit original policy documents, the death certificate of the policyholder and the employer certificate.
In order to purchase life insurance digitally for NRIs in India, insurers allow online medical checkups. These can be done through a telecall or video call. It is important to notify the medical practitioner if the policy seeker has any specific health conditions.
For offline purchases, policyholders can be physically present for medical examinations and submit the reports to the insurer.
For seamless premium payments towards NRI life insurance in India, the NRIs can use credit or debit cards for the required remittance. Furthermore, utilising Non-Resident External (NRE) or Non-Resident Ordinary (NRO) accounts, they can transfer the amount through internet banking. If you are looking for traditional ways to make payments, you can opt for cheque payments as well.
There are different types of NRI life insurance policies available in India. Before purchasing the best life insurance policy for NRI in India, you need to identify coverage requirements; the relevant sum assured amount, the payable premiums and frequency, policy term and riders.
Here is a list of different life insurance policies available for NRIs:
Plan type |
Best For |
Key Features/ NRI Benefits |
Term Insurance |
NRIs looking for whole life coverage at an affordable premium |
Offers pure life cover for a fixed term, with optional riders; policy term can extend up to 99 years. |
Endowment Plan |
NRIs in search of investment plans that offer financial protection and generate wealth simultaneously |
Combines life cover with guaranteed returns; maturity benefits can support long-term goals. |
Retirement Plan |
NRIs looking for a tension-free life back in India after retirement |
Builds a retirement corpus with annuity or lump-sum payout options; includes investment flexibility. |
ULIPs |
NRIs in search of financial protection with market-linked returns |
Part of the premium goes to life cover, part to equity/debt funds; allows fund switching and partial withdrawals. |
The following are the best features of insurance for NRIs in India:
Compared to life insurance policies in other countries, policies available in India come at budget-friendly premiums with extensive coverage. Moreover, if you are getting a policy at a young age, you will receive policy coverage at a lower premium.
Life insurance policies for NRIs come with a longer policy term, at least 30 to 40 years. This quality makes these plans suitable to meet long-term financial goals, not only for the policyholder but also for their families.
Certain life insurance policies for NRIs, such as term insurance plans, provide accelerated benefits, such as offering coverage for terminal illness. Such coverage ensures that if the policyholder gets diagnosed with a critical illness, their treatment costs will be covered for an additional premium.
In case of a policyholder’s sudden demise due to an accident or illness, life insurance safeguards their families by offering lump-sum financial payouts or regular payouts. The frequency as well as the payout amount can be determined by the policyholder at the time of purchase.
Premium waiver refers to an optional add-on that ensures the policy continues even if the policyholder cannot pay premiums due to disability/critical illness. It can be due to unforeseen events such as an accident leading to permanent disability, or being diagnosed with a critical illness such as cancer or kidney failure.
In a limited-pay life insurance plan, a policyholder pays a premium for a limited term. After that, the policyholders can enjoy extended policy coverage even when they do not have a surplus income. It is perfect for self-employed individuals or business owners.
Most NRIs prefer to purchase digital life insurance plans in India online because of the flexibility and feasibility. Whether it is submitting KYC documents online or paying premiums, most insurers emphasise transparency, security and seamlessness.
NRIs can avail a wide range of benefits with insurance policies catering to their financial needs. These benefits include life coverage and ensuring your family is protected and secured irrespective of where you reside. Here are the benefits you must know about this insurance policy provide to NRIs:
Under sections 80C and 10(D) of income tax act 1961#, life insurance plans for NRIs help to save on taxes. For example, under section 80C, the premiums paid towards a life insurance plan up to ₹1.5 Lakh are eligible for tax deductions per year. In addition, under section 10(10D), the maturity benefit amount is tax-free.
Life insurance for NRIs enables policyholders to generate wealth over time so that they can reach their long-term financial goals. For example, investing in an ULIP will provide dual benefits of life cover along with an investment component. So, whereas one part of the premium is devoted to life cover, the other part can be invested in market-linked funds to gain returns.
With a reliable life insurance plan, you not only secure your family's financial requirements but also build a financial corpus to meet your future goals. The lock-in period makes you a disciplined saver so you can avoid impulsive expenses.
Consistently investing in a life insurance plan ensures the financial security of the family even in the absence of the sole breadwinner. The global coverage of most life insurance plans for NRIs makes sure that the dependents get financial coverage irrespective of which country they live in.
Investing in an INR-based life insurance plan reduces the risks of currency fluctuations. This, in turn, protects future payouts. Suppose the family of a policyholder is in India and makes a life insurance claim. They will receive payouts in INR or as mentioned in their policy terms. This is beneficial for NRIs who earn in foreign currency with India-based dependents.
Sometimes insurers emphasise diversifying investments in stable foreign assets, such as US dollar or Euro-denominated instruments, since these are globally accepted currencies.
Here are the reasons why you, as an NRI, should consider buying life insurance in India:
Life insurance plans available in India for NRIs are regulated. Meaning, the plans are reliable when it comes to offering financial protection to your family. These plans maintain operational integrity, transparency, and ensure data security.
The premiums paid towards a life insurance policy plan are cheaper compared to those in any other country, such as the UK or the USA. As a result, paying premiums towards a life insurance plan does not become a burden.
All digitally available life insurance plans in India offer 24/7 support to the policyholders. Whether it is a claim settlement, policy purchase or a claim-related query, the customer care is always ready to extend help.
There are multiple ways to pay the premium; you can pay it using a debit or credit card, or use the internet banking option. The encrypted payment portals ensure complete data security and seamlessness.
Here is a table showing difference between Indian & Foreign life insurance for NRIs:
Feature |
Indian Life Insurance |
Life Insurance for NRIs |
Regulatory Oversight |
IRDAI regulated |
NAIC, or FCA, varies from one country to another |
Premium Cost |
Lower premiums because of cost-effective underwriting |
Higher premiums, specifically in developed countries |
Policy Application |
Completely online, medical checkups can be done through a telecall or video call. |
Requires in-person medical checkups and physical documents. |
Currency |
Premiums and payouts are available in INR, making it perfect for India-based dependents. |
Payouts are given in foreign currency, which is subject to rate fluctuations. |
Claim Settlement |
Payout processing for Indian dependents is prompt |
Takes time to process international claims |
Support and Servicing |
NRI-dedicated online support and services are available |
Not always NRI-focused |
Suitability for Indian Dependents |
High and direct INR payouts are available, without any requirements for currency conversion |
Lower conversion is required for INR use |
Check out various tax benefits of life insurance for NRIs:
Section |
What it Covers |
Summary for NRIs |
Section 80C |
Deductions available on paid premium |
Premiums qualify for tax deduction up to ₹1.5 Lakh per annum |
Section 10(10D) |
Tax exemption on maturity or death benefits |
If the premium does not cover 10% of the sum assured amount, the maturity claims are tax-exempt |
Avoid the following mistakes while purchasing NRI life insurance:
It is recommends policy seekers to choose a coverage that is 10 to 15 times more than their annual income^. Choosing insufficient coverage will not serve the purpose of investing in a life insurance plan.
It is essential to choose policy riders that are relevant to you. Combining different riders without knowing their functions will only increase the premium and not address your requirements. Consulting with your insurer before purchasing a rider is a smart move.
Even though in a broader perspective, life insurance policies for NRIs have a similar purpose, when it comes to policy specifics, they differ a lot. Therefore, understanding policy terms is crucial.
Financial experts highlight that investors need to start early to get the best out of their life insurance policies. Delaying the purchase could lead to a higher premium and lower returns.
Choosing insurers with a low claim settlement ratio could lead to a delay in claim settlement or a lack of reliability, insurance regulator suggests that policy seekers choose insurers who have at least 95% CSR.
Understanding the right practices for NRI life insurance helps ensure transparency, reliability, and long-term financial security.
When selecting a policy, keep the following pointers in mind:
Opt for coverage of at least 10 to 15 times^ your annual income to provide adequate protection for dependents.
Select the right type of policy—while term insurance offers broad coverage at affordable premiums, it does not include a maturity benefit.
Choose a policy tenure that spans your working years and extends until retirement.
Review the insurer’s claim settlement ratio, financial strength, and customer feedback to gauge credibility and reliability.
Here is how you can choose the right life insurance policy for NRIs:
Identifying your life insurance goal is the first and foremost step towards your buying journey. Consider how many dependents you have and their probable future goals, your income, payable premium and sum assured.
If you have a goal to gain dual benefits of investment and insurance, investing in a ULIP is the most suitable option for you.
...Read More
Checking the insurer's credibility comes next. You have to be sure that the insurer you are choosing has a high claim settlement ratio, is reliable, and has IRDAI approval. According to the guidelines proposed by regulator, an insurer must have a claim settlement ratio of 95% or above to be reliable. NRIs who have dependents living in India must emphasise this point.
...Read More
When it comes to choosing the best insurer, comparing premiums and features of different life insurance plans is crucial. Through comparing, you will identify which policy provider is offering the most extended coverage at an affordable premium. Make use of the life insurance policy calculator available online for an accurate calculation.
You can utilise the following checklist while comparing:
INR payment facility allowed or not
24/7 online accessibility
Claim Settlement Ratio
Online medical checkup availability
Monthly Premium amount
Sum Assured Amount
...Read More
Being aware of tax benefits# will offer you an idea of how to utilise the life insurance policy to gain financial advantages. For example, section 80C# allows policyholders to avail of tax deduction benefits up to ₹1.5 Lakh per year.
Furthermore, as per section 80D#, if you choose a health rider as part of your life insurance plan, you are eligible for tax deductions up to ₹25,000 for yourself and your family, and another ₹25,000 for your dependent family.
...Read More
Policy term in a life insurance for an NRI refers to the duration for which a policyholder and their family are covered. During this time, if something happens to the policyholder, the beneficiaries will receive the sum assured amount. The policy term starts with the policy purchase and lasts until maturity.
Suppose a 30-year-old NRI individual wants to spend his retirement in India. To reach his long-term goal, he needs to choose a policy term of 30 years. That way, he will be able to build a retirement corpus until he is 60 and spend a peaceful retirement after coming back to India.
...Read More
To avoid complications during claim settlement, notifying the insurer about the insured event immediately is crucial.
Policyholders need to respect policy terms and exclusions.
Only a nominee or a beneficiary is authorised to make a claim.
Submission of relevant documentation such as death certificate, medical practitioner’s statement, etc, is mandatory.
As stated above, for a life insurance policy purchased in India in Indian Rupees (INR), the claim amount will always be settled in Indian Rupees (INR).
To receive the claim proceeds in India, the nominee must have an NRE or NRO account. The funds can be repatriated from an NRE account, subject to regulatory limits.
Dealing with the claim process for NRI might seem challenging especially when it comes to dealing with legal requirements of another country. However, following a step-by-step procedure might simplify the claim process.
Here is a detailed overview of the claim process for NRI life insurance providing more tips on handling insurance efficiently:
This is the first and foremost step to follow for starting the claim process. The policyholder must inform the insurer about the claim as soon as possible.
The documents to keep ready for initiating claims are the name of the policyholder, policy number, death cause, place of death, nominee's name, etc. The nominee registered with the policy however can download the claim form from the respective website of the company or can visit the nearest office branch. To know more What is a Nominee in Life Insurance?
...Read More
Here are the following documents to keep ready while filing the claim. The documents are:
However, within the first 3 years of policy initiation, if you file the claim, the insurance company will investigate further to verify it as a genuine claim
...Read More
To make the claim settlement process faster and without any delay, the nominee must submit all relevant documents. Here are the documents you must submit during claim processing:
...Read More
According to the Insurance Regulatory and Development Authority of India (IRDAI), it is mandatory to claim within 30 days. The claim should be settled from the submission of the claim form by the nominee with all relevant documents. If further investigation is needed, the insurance company must complete the claim settlement process within 6 months from the day of registering a claim.
...Read More
If you want to purchase life insurance for an NRI, follow these steps:
Choose Your Life Insurance Plan and insurer (Visit the official website of the insurer)
...Read More
Fill out the Application Form (Provide details such as name, DOB, annual income, and email)
...Read More
Upload Required Documents (Passport, visa, address proof, income proof)
...Read More
Make the Payment (choose your preferred payment portal to pay
...Read More
Complete Medical Examination (If Required) (for online policy purchase, it can be done online via video call or telecall)
...Read More
NRI life insurance is a must-have for individuals residing abroad, irrespective of the location they are residing in. This insurance policy looks after the well-being of your family.
Yes. Non-resident Indians (NRIs) can buy life insurance in India if they can meet the desired eligibility criteria by the insurance company.
To invest in life insurance, a Non-Resident Indian (NRI), Person of Indian Origin (POI) and Overseas Citizen of India (OCI) are eligible as mentioned in the Foreign Exchange Management Act (FEMA).
Address proof, a copy of age proof, a passport, medical history, identity proof and income proof are the required documents to buy NRI Life Insurance.
Yes, NRIs can claim tax benefits for all life insurance policies in India under Section 80C & Section 10(10D) of the Income Tax Act, 1961. The income NRIs earn in India is taken into consideration here for taxation purposes.
DTAA stands for Double Taxation Avoidance Agreement which is entered into by India with Other Countries to avoid double taxation for the NRIs who are covered under tax laws of both the countries. India has signed DTAA with more than 90 countries.
NRIs are liable to pay premiums for their life insurance policies through online transfers, credit cards, and debit cards.
At the time of purchasing a term insurance policy, undergoing medical tests is mandatory for NRI Life Insurance.
For NRIs, there are three different types of life insurance plans such as term insurance plan, retirement plan, endowment plan and Unit Linked insurance plan (ULIP).
Yes, NRIs can purchase large life covers for their family members in India at affordable premium rates.
If an NRI policyholder returns to India, their insurance policy stays valid. Later on, approaching the insurance company they can change their residential status and make premium payments in Indian rupees.
NRIs are eligible to file a claim for Life Insurance. However, they must possess a valid insurance policy with all necessary documents for claiming.
Yes, NRIs can purchase life insurance online by comparing different policies, filling out necessary applications and making premium payments. Applying online is most convenient for NRIs living abroad.
1. Provided all due premiums have been paid and the policy is in force.
3. Provided all due premiums have been paid.
4. ROP – Return of Premiums. This applies to Income variant, whereby all base premiums are returned to policyholder on survival of Life Assured at maturity, provided all due premiums are paid during the premium payment term.
6. In the case of Joint Life annuities the payout continues till either of the lives chosen in the policy is alive.
9. Available under Life and Life Plus plan options, upon payment of additional premiums
10. Available as in built feature under Life Plus plan option
12. Available under Level Cover with Capital Guarantee and Decreasing Cover with Capital Guarantee plan options
17. Quantum of benefits is guaranteed irrespective of the experience.
^ Available under Life & Life Plus plan options
~Save 46,800 on taxes if the insurance premium amount is Rs.1.5 lakh per annum and you are a Regular Individual, Fall under 30% income tax slab having taxable income less than Rs. 50 lakh and Opt for Old tax regime.
In unit linked policies, the investment risk in the investment portfolio is borne by the policyholder. The Unit Linked Insurance products do not offer any liquidity during the first five years of the contract. The policyholders will not be able to surrender/withdraw the monies invested in Unit Linked Insurance Products completely or partially till the end of fifth year.
Unit Linked Life Insurance products are different from the traditional insurance products and are subject to the risk factors. The premium paid in Unit Linked Life Insurance policies are subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market and the insured is responsible for his/her decisions. HDFC Life Insurance Company Limited is only the name of the Insurance Company, The name of the company, name of the contract does not in any way indicate the quality of the contract, its future prospects or returns. Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document of the insurer. The various funds offered under this contract are the names of the funds and do not in any way indicate the quality of these plans, their future prospects and returns.
# Tax benefits & exemptions are subject to conditions of the Income Tax Act, 1961 and its provisions. Tax Laws are subject to change from time to time. The customer is requested to seek tax advice from his Chartered Accountant or personal tax advisor with respect to his personal tax liabilities under the Income-tax law.
^ https://www.business-standard.com/finance/personal-finance/explained-why-your-ideal-term-cover-should-be-10-15-times-your-annual-pay-123092101393_1.html
ARN- BC/08/25/26052
:1800-266-9777
Written By:
