By Dheeraj Sehgal
Term insurance premiums in India remain remarkably competitive compared to other countries around the world. For an Non-Resident Indian (NRI), buying substantial life insurance coverage in India can cost significantly less than securing similar protection elsewhere.
This affordability does not dilute product depth. Indian insurers today offer comprehensive coverage, flexible policy tenures extending up to retirement age, and optional riders such as critical illness and accidental death benefit riders.
For an NRI servicing a home loan in India or planning for children’s education here, locking in a high cover at a relatively lower premium becomes a financially prudent move.
Over a long horizon of 20-30 years, the cumulative premium savings can be significant. Throw in the advantage of earning in a strong foreign currency while paying premiums in Indian rupees, and the financial case becomes even more attractive.
Technology enabler
Another important enabler has been the transformation of distribution models. Earlier, logistical challenges often discouraged NRIs. Today, much of the process can be initiated and completed remotely, subject to regulatory norms. The Indian insurance industry has embraced digital onboarding, remote verification, and streamlined underwriting. Dedicated NRI support teams, clarity on medical norms, and improved turnaround times have collectively reduced entry barriers.
Financial protection
There is also a smarter strategic reason why NRIs are choosing Indian life insurance. Many overseas Indians may have retirement savings in one country, stock portfolios in another, and property in a third. When you look at financial protection this way, holding a term insurance policy in India becomes part of a diversified financial protection strategy that spans multiple countries.
Benefits tied to your employer abroad are not always something you can take with you if you change jobs. Your visa status can change, and what was guaranteed yesterday might not be guaranteed tomorrow. A life insurance policy you own in India does not depend on any of that. It stays with you regardless of where you work or what your residency status is.
Looking ahead
As underwriting standards strengthen and digital capabilities deepen, the NRI segment is poised to remain an important growth driver. For NRIs evaluating their financial blueprint, the question is not whether life insurance in India is relevant. The more pertinent questions are around adequacy of life insurance cover, policy tenure alignment with financial liabilities, and integration with cross-border assets. Protection planning is ultimately about safeguarding aspirations. For overseas Indians whose roots, responsibilities, and relationships remain intertwined with India, securing life insurance back home is not just a financial decision. It is a reaffirmation that distance does not dilute responsibility.
The writer is chief distribution officer, Institutional Business, Bajaj Life Insurance
Disclaimer: The views expressed are the author’s own and do not reflect the official policy or position of Financial Express.