Insurance Options for NRIsInsurance TypeBuy in India?Buy Abroad?RecommendationTerm Life Insurance✓ (cheaper premiums)✓Buy in BOTH for max coverHealth InsurancePossible but limited✓ (primary)Abroad primary + India for visitsMotor Insurance✓ (if car in India)N/ARequired for India vehiclesTravel Insurance✓✓Buy for every tripULIP/Endowment✓ (if NRE/NRO account)✗Term + mutual fund better💡 Key Rule: NRIs can buy life insurance from Indian companies. Premium must be paid from NRE or NRO bank account. Maturity/claim proceeds can be repatriated to your country of residence without any restriction under FEMA.Term Insurance for NRIs

Indian term insurance is 60-70% cheaper than equivalent US/UK plans. A ₹1 Crore ($120K) term plan costs ₹10,000-15,000/year from India vs $1,500-2,500 in the US. However, not all Indian insurers cover NRIs — and some exclude certain countries (check the exclusion list). Popular NRI-friendly insurers: HDFC Life, ICICI Prudential, Max Life, SBI Life.

Frequently Asked QuestionsDo I need to disclose NRI status to my Indian insurer?

Yes, mandatory. Non-disclosure of NRI status can lead to claim rejection. When buying or renewing, always update your residential status. Some insurers charge a small NRI premium loading (5-10%).

What happens to my existing Indian policy when I move abroad?

Most life insurance policies continue without issue. Inform your insurer about the status change. Health insurance may need to be converted to an NRI variant. Motor insurance can be maintained if you still own a vehicle in India.

Can NRI parents buy insurance for children studying in India?

Yes. NRI parents can buy health and life insurance for dependent children in India. Premium payment through NRE/NRO account. Children will need Indian address proof for health insurance network hospital access.

NRI Insurance Guide 2025: Life, Health & Tax Benefits for Non-Resident Indians

By Admin • Feb 23, 2026 • 📖 4 min read

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Insurance & financial content specialist at PolicyBaazar. Helping Indians make informed insurance decisions with expert analysis and unbiased reviews.

📅 Published: Feb 23, 2026 📖 820 words ⏱️ 4 min read

NRI Insurance Guide 2025: Life, Health & Tax Benefits for Non-Resident Indians

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