All About Life Insurance for Non-Resident Indians

NRI life insurance can be described as a type of life insurance plan that’s designed to help non-resident Indians (NRIs) meet their requirements and safeguard the future of their family members. These insurance policies can be obtained from any life insurance provider in India, regardless of where the applicant is currently residing. However, individuals should note that life insurance policies for NRIs are subject to the norms of the Foreign Exchange Management Act and regulations of the Insurance Regulatory and Development Authority of India. Interested policy buyers should know more than what is a life insurance policy to pick a suitable plan catered to NRIs.

Read along to know the key features, types, and benefits of life insurance policies for NRIs.

Types of Life Insurance Policies in India for NRIs

These are the common types of NRI life insurance plans in India:

  • NRI Term Plans

NRI term insurance offers policyholder death benefits same as what is paid through term life insurance plans for resident Indians. These insurance plans are essentially protection plans that tend to pay the sum assured to the policy beneficiary if the insured passes away during the active policy term. However, many leading companies offer NRIs the leeway to buy riders or add-ons and include them in their existing term policies. These add-ons or riders offer them additional coverage to include critical illnesses, disabilities, and accidental death.

  • NRI Retirement Plans

They allow NRIs in India to put their money into retirement plans to help them generate a stream of income after retirement through their annuities. These insurance plans can help NRIs streamline their retirement plan and enable them to safeguard their finances to lead a financially independent and secure life long after their retirement.

  • Unit Linked Insurance Plans for NRIs

These life insurance plans combine the best of life insurance coverage with the perks of investment features to help NRIs mobilize savings and avail a life cover. However, the ULIPs for NRI operate the same way ULIPs for Indian citizens do. Notably, in case of the policyholder’s sudden death, the actual death benefit is paid out to the policy nominee. However, if the insured survives the ULIP’s term, they are entitled to receive promised returns based on their investment units linked to the plan.

  • Child Plans for NRIs

Non-resident Indians can obtain child insurance plans to safeguard their kid’s future in the event of the insured’s untimely death. These insurance plans enable NRIs to build a robust corpus for key life goals for their kids, including funds for higher education. Child insurance plans for NRIs also provide add-ons to insureds such as waiver of their future premiums benefit, which can aid them in managing their financial liabilities and future expenses in the event of the policyholder’s sudden death

Who Can Obtain an NRI Life Insurance Plan in India?

  • Non-Resident Indians: These are basically Indian nationals with valid Indian passports but are temporary residents of some other nation.
  • Overseas Citizen of India or Person of Indian Origin: These entities are nationals of other countries excluding Bangladesh and Pakistan, and they must meet these eligibility requirements:
  • Applicants have an Indian passport
  • The applicants or their parents or ancestors were recognized as Indian citizens under the Constitution of India or Citizenship Act of 1955 
  • The applicant has an Indian citizen as a spouse.
  • Foreign Nationals: These are actually nationals of other countries but they reside in India. The crucial requirements and essential documents one needs to submit to avail of such insurance plans may differ from insurer to insurer and provider to provider. However, the top insurance providers in India have to observe certain predefined norms and limits when they issue NRI life insurance plans to citizens of certain countries. Individuals can visit the official website of their chosen life insurance companies in India to check if the nation they currently reside in, belongs to the list of nations that are barred from purchasing an insurance plan.

What are the Documents Required for NRI Life Insurance Plans?

Note that the list of documents required to complete the KYC norms for NRI life insurance varies from insurance provider to provider. However, here is a list that is commonly asked: 

  • National Identity card or resident card that was issued by the government of the nation they currently reside in. These ID cards may include the applicant’s passport that features their overseas home address
  • Driving license that features their overseas home address
  • Mobile, water, gas, telephone, or any other utility bill
  • Credit card statements of the last three months that were issued at their overseas home address
  • Copy of individual’s valid resident permit or work permit that has a vintage of at least 3 months and contains their overseas home address
  • Employer’s certificate to serve as their proof of overseas home address


Besides these, the applicants would also be asked to submit 

  • Medical records
  • Proof of age
  • Income proof
  • Copy of Passport

Before applying for any life insurance policy as an NRI, individuals should make sure to check the entire list of required documents carefully. This will help them to avoid delays in their insurance application process. Individuals can easily find the required list of documents on the official website of their chosen insurance company and plan their application accordingly.

Why Should NRIs Purchase Life Insurance in India?

Non-resident Indians should obtain a life insurance policy in India for these top reasons –

  • To ensure the overall financial safety and security of their family members by building a reliable provision for loss of income in the event of the insured’s untimely demise
  • To ensure that outstanding debt and other obligations of the insurance policyholder don’t hamper the quality of living standard of the dependants
  • To reap the benefit of the diversifying investment portfolio and avail the applicable tax benefits

However, to get the most out of one’s NRI insurance policies, it is vital to choose a leading insurance provider. This will ensure guaranteed claim approval and timely support.

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