NRIs' Double Term Insurance Purchases In India In Just Two Years: Report

Policybazaar reports NRI term insurance purchases from India have doubled in two years, with Gulf nations leading and women buyers on the rise

The surge is primarily driven by competitive premium rates, long-duration policy options, and rupee-denominated benefits that offer financial protection for families and assets back home

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Non-Resident Indians (NRIs) are increasingly choosing India as the destination for their term insurance needs, with purchases having doubled in just two years, according to an analysis by Policybazaar. The study highlighted a 100 per cent rise in NRI term plan acquisitions from India between FY22 and FY26 year-to-date (YTD).

The surge is primarily driven by competitive premium rates, long-duration policy options, and rupee-denominated benefits that offer financial protection for families and assets back home. “Across the globe, NRIs are increasingly turning to India's term insurance products to secure their families and financial commitments back home,” the report stated.

The UAE and Gulf Cooperation Council (GCC) countries remain the biggest contributors, accounting for 59 per cent of total NRI term life policies issued during the period. These buyers largely comprise salaried professionals and entrepreneurs in the construction, retail, and services sectors. Lower premiums and settlement in Indian currency make India-based insurers an attractive choice for Gulf-based NRIs.

Rising Interest From Western Markets

Europe and the Australia–New Zealand region are also emerging as strong markets for India-linked term insurance, recording a combined compound annual growth rate (CAGR) of 87 per cent from FY22 to FY26 YTD. The report attributes this growth to tech professionals and long-term residents opting for India-based coverage.

Women are also becoming a more prominent demographic among NRI policyholders, with participation now at 15 per cent. The highest uptake is from the UAE and North America, reflecting shifting trends in global insurance buying behaviour.

Monthly Premiums Dominate

Nearly 80 per cent of NRI buyers prefer monthly premium payment schedules, making it the most popular choice. However, the report noted a growing shift towards single-premium policies—particularly in the UAE—where some customers opt to secure 30–40 years of coverage in one go.

With increasing global interest and diverse buyer profiles, India’s term insurance sector is positioning itself as a strong, value-driven choice for NRIs seeking long-term protection.