Summary of this article
The past two years have seen a sharp rise in Non-Resident Indians (NRIs) buying term insurance from India, with purchases doubling over the period. The report points to multiple factors behind the trend such as competitive premiums compared to overseas markets, long-term policy options, and the comfort of rupee-denominated payouts to families and dependents in India.
Over the past two years, more Non-Resident Indians (NRIs) have been looking homeward for their life cover, and in far greater numbers. Recent data from Policybazaar shows that term insurance purchases by NRIs from Indian insurers have doubled in this period, with the Gulf region driving most of the demand.
Lower premiums in India compared to the local markets (GCC countries), along with rupee-denominated payouts for families back home, are making Indian term plans a preferred choice for these expatriates.
Nearly six in ten such policies sold through the platform since financial year (FY) 2022 to FY26 have gone to buyers based in the UAE and other Gulf Cooperation Council (GCC) countries. Many of them are salaried professionals or business owners in sectors, such as construction, retail, and services, and people who still have strong financial links to India through dependents, home loans, or investments.
“In just two years, NRI purchases of India-based term insurance have doubled. The growth is led by Gulf-based NRIs, with younger buyers opting for long-term coverage and flexible payment structures. Lower costs than many overseas markets, and the reassurance of rupee payouts, are key reasons behind this shift,” said Varun Agarwal, head of term insurance at Policybazaar.
However, this is not limited to the Middle East alone. NRIs settled in Europe, and Australia, and New Zealand are also buying policies in India. Together, expats from these regions posted an 87 per cent compound annual growth rate over the last four years in NRI term insurance purchases. The buyers are mostly tech professionals and long-term permanent residents in these regions, who are picking up India-linked covers, drawn by the combination of long policy tenures and benefits of rupee settlement.
The numbers also point to a growing younger customer base. About 62 per cent of NRI term insurance buyers are under 40, many locking in premiums for plans that run for 35-40 years, often stretching until retirement or until their children are financially independent. The average tenure is now 36.7 years.
Income trends show that the Rs 25 lakh to 35 lakh annual bracket makes up the largest segment of NRI term purchases, with 16 per cent buyers earning more than Rs 50 lakh a year. As for the popular cover range, Rs 2 to 3 crore continues to be the most popular choice, especially among the Gulf and ANZ professionals in their prime earning years.
Women too are joining the fold. They now account for 15 per cent of NRI term plan buyers. Their uptake is higher from the UAE and North America.
How are They Choosing to Pay the Premiums?
Data shows that preferences for premium payment are skewed most towards monthly instalment, with nearly 80 per cent choosing this option. There’s also a small but notable shift towards single-premium policies, particularly from buyers in the Gulf.
