This is because term insurance from India is up to 50% cheaper, offers coverage up to Rs 5 crore, and can be obtained with tele-medical checkups. NRIs can also benefit from features like return of premium, early payouts for critical illness, and immediate financial assistance upon claim intimation
Policybazaar, an online insurance marketplace, is witnessing a significant increase in non-resident Indians (NRIs) choosing term insurance from India via its platform. This surge is driven by the unparalleled ease, affordability and accessibility offered by the Indian insurance market. While several factors contribute to the growing interest in term insurance in India, affordability and convenience stand out as primary reasons. The demand among the 18-60 age group has seen an impressive 130 per cent year-on-year growth, with India emerging as the preferred choice for NRIs residing in countries like the US, UK, Canada, UAE and Singapore.
The surge in demand from NRIs can be credited to several standout features and benefits. Term policies from India cost up to 30-50 per cent less for NRIs residing in the UAE and Singapore. Additionally, policies with coverage of up to Rs 5 crores can be easily obtained with tele-medical check-ups from India, eliminating the need for physical visits. Unlike some countries with restricted policy terms and coverage, Indian term plans offer coverage for longer durations, extending up to 99 years.
Sarbvir Singh, Joint Group CEO, Policybazaar, said, “We are witnessing exponential growth in term insurance purchases from NRIs, particularly from the Gulf nations and select European countries. Policybazaar has focused its efforts on expanding term insurance protection in both Indian and overseas markets. The unmatched benefits offered by Indian insurers including: competitive pricing, larger covers, and streamlined processing through tele-medicals, are significant contributors to this demand. It is heartening to see NRIs realising the importance of securing their dependents’ future and choosing Indian term insurance policies.” NRIs are also eligible for 18 per cent GST exemption upon purchasing term insurance plans from India, when paying via their NRE accounts. This attractive pricing, along with the availability of longer-term plans, has led to a rise in demand among NRIs, especially from Gulf nations, where 65 per cent of term insurance buyers hail from, with the UAE alone contributing 35 per cent.
Rhishabh Garg, Head of Term Insurance at Policybazaar, adds, “The evolution in the Indian term insurance industry is marked by innovative offerings designed to meet the distinct needs of consumers overseas. The consumer-centric features in term plans from India are increasingly appealing to NRIs, which include return of premium at no extra cost, early pay-outs for terminal illness, premium waivers for permanent disability, and immediate pay-out of up to Rs 2 lakhs on claim intimation for immediate obituary expenses.”
The accessibility of these plans is further enhanced through seamless processing for NRIs, whose average annual income exceeds Rs 35 lakhs. Insurers now also offer a sum assured of up to five crores, ensuring adequate coverage based on Human Life Value (HLV) calculations. NRIs can also leverage Policybazaar’s search and comparison engine to browse the best suitable plans as per their needs and preferences.
With a commitment to providing comprehensive coverage and protection, Policybazaar continues to redefine the landscape of term insurance for NRIs, empowering them to secure their loved one's future with peace of mind. As NRIs continue to seek comprehensive coverage and value-driven solutions, Policybazaar remains dedicated to delivering innovative term insurance products and services tailored to their evolving needs.
