Industry experts view this as a structural shift rather than a temporary spike. As global mobility increases but family roots remain firmly in India, Indian term and health insurance plans are becoming essential tools for NRIs seeking long-term financial security and peace of mind
As global job markets grow uncertain and families remain geographically split, non-resident Indians (NRIs) are increasingly turning to India for a critical pillar of financial planning—life and health insurance. What was once driven largely by cost considerations has now evolved into a broader preference for Indian-issued term plans that combine affordability, regulatory certainty and digital convenience.
Insurers and digital platforms report a steady rise in NRI participation, reflecting changing priorities among overseas Indians who continue to maintain financial responsibilities in India. These include dependent parents, home loans, education expenses and long-term investments. Indian term insurance plans are emerging not just as economical alternatives, but as structurally robust products offering higher coverage at significantly lower premiums than comparable international options.
Affordability remains the most visible advantage. Health insurance premiums in India typically range between USD 120 and USD 300 annually per person, compared with nearly USD 8,000 in the US and USD 4,000–5,000 across Gulf countries. Life insurance costs follow a similar pattern, allowing NRIs to secure higher sums assured at a fraction of overseas premiums.
Equally important is regulatory stability. India’s insurance sector, governed by the Insurance Regulatory and Development Authority of India (IRDAI), has strengthened its solvency and claims frameworks over the years. For NRIs, this ensures predictability and smoother claim settlement for beneficiaries based in India.
The Middle East continues to dominate demand. Policybazaar data shows that the UAE and other Gulf Cooperation Council (GCC) countries accounted for nearly 59 per cent of NRI term insurance purchases between FY22 and FY26 (year-to-date). These buyers are largely salaried professionals and entrepreneurs with strong financial links to India.
However, momentum is rapidly building beyond the Gulf. Europe, Australia and New Zealand have recorded sharp growth over the past four years, while insurers are increasingly viewing Europe and North America as emerging markets. Rising awareness of India’s cost advantage and the availability of long-tenure, rupee-denominated benefits are key drivers.
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Digital onboarding has further accelerated adoption. Video-based KYC, tele-medical assessments, acceptance of overseas medical reports and 24×7 digital servicing have removed the need for physical presence in India
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According to IRDAI’s Annual Report 2023–24, NRI participation in digital insurance channels rose 21 per cent year-on-year
Product preferences among NRIs also highlight a shift towards continuity-focused protection. Riders such as critical illness, disability cover, income replacement and premium waiver options are gaining traction, particularly among younger buyers. Those under 40 now account for over 60 per cent of NRI term plan purchases, often locking in coverage early for lower premiums and longer tenures.
Health insurance and India’s growing medical tourism sector are reinforcing this trend. Rising confidence in Tier-2 and Tier-3 cities for treatment, along with state-backed expatriate insurance schemes, is deepening trust in India’s healthcare ecosystem.
