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Everything You Need To Know If You Are An NRI Planning To Buy Life Insurance

Everything You Need To Know If You Are An NRI Planning To Buy Life Insurance

NRI Planning To Buy Life Insurance

The Foreign Exchange Management Act has made it possible for Non Resident Indians (NRIs) and Person of Indian Origin (PIOs) to attain term insurance in India. Many insurance companies have created customized options that might be of interest to NRIs. Read on to understand the implications and advantages of different life insurance policies that you can avail in the Indian market and the procedures for the same.

Factors that NRIs would need to know prior to purchasing life insurance in India.


NRI can be defined as an individual who has lived outside the country for a certain time period. PIO can be defined as an individual from any other country except Pakistan or Bangladesh if they meet the following conditions:

  • You have possessed an Indian passport at some point in your life.
  • Under the Citizenship Act, 1965 you or your parents or your grandparents have been citizens of India.
  • You are married to an Indian citizen.

If you are an Non-Resident Indian you need a valid Indian passport; and if you are a PIO who meets the above requirements then you qualify to apply for purchasing life insurance.

Medical Examination

You don't need to be present in India to purchase life insurance and your geographic location will be immaterial to the purchase process. However, you might need to visit India in order to give your medical examination depending on which insurance company you are applying for. Typically there are two ways to give the medical test, one way is to visit India and give the examination. Your insurer might pay for the expenses. The second way is to do the medical test abroad and provide a report to the insurance company you are applying for. In some cases if the insurance is created specifically for NRIs, insurance company in India could tie up with their counterparts abroad.

Premium Payment

Many times people residing outside India have families back home who can monitor and ensure that the premiums are being paid via banks in India. The premium can be paid via Non-resident ordinary (NRO) nature account or NRE/Foreign Currency Non-Repatriable (FCNR) account. However, if the life insurance policy is purchased in foreign currency then the premium will be paid from NRE or FCNR account.


Those living in countries prone to an exceeding amount of political instability (also known as High-Risk Countries), you would prove to be a higher liability to the insurer and would thus, be required to pay a higher premium amount. If you live in a country known for lesser or no instability, your premium amount would generally be much less.

Maturity and Death Benefits

Life insurance policy purchased by NRIs from insurance companies in India cover death irrespective of where you are located when you die. The death benefit will be provided in Rupees or in the currency of nation where you are residing. Similar to a regular life insurance policy, the nominee would need to submit necessary documents as per the policy terms.

Should NRIs purchase life insurance in India?

Life insurance policy in India can be utilized by NRIs as a protection for their loved ones in case of unforeseen events. There are many stages in life that your family would need your financial support, and by purchasing a life insurance policy, you can safeguard dependents in your absence. Another useful feature is that when your family is located in India, they can look at new avenues and discuss opportunities with insurance companies here with much ease.

You would, of course, need to understand the benefits different policies would have for you, given your life situation. You would also need to compare the different life insurance policies offered by Indian insurance companies prior to making your choice.

One option you could consider is the Smart Future Income Plan by Canara HSBC . With the Smart Future Income Plan, you would get benefits such as life cover for 25 years, assured income, loan flexibility, and attain Lump Sum money from annual and final bonuses.


You can select the life insurance policy that meets the requirements of you and your family. Options like the Smart Future Income Plan by the Canara HSBC can make the procedure of purchasing life insurance in India to be a fairly simple process. Ultimately, based on your financial situation, you can explore how you can best use a life insurance policy to meet the needs of you and your family at different milestones of life.

Speak to an insurance specialist now!

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