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Non-Resident Indians (NRIs) are increasingly turning to India for buying term insurance plans, with purchases doubling over the past two years, according to an analysis report by Policybazaar.
The data in the report showed a 100 per cent growth rate in NRI term insurance purchases from India between FY22 and FY26 year-to-date (YTD). The report also noted that the reason for this increase is the competitive premiums, long-term policy options, and rupee-denominated benefits that safeguard families and assets back home have been key factors driving this trend. It stated, "Across the globe, NRIs are increasingly turning to India's term insurance products to secure their families and financial commitments back home." Many NRIs continue to have financial commitments in India, such as dependents, home loans, and investments, making India-linked insurance a preferred choice. The UAE and Gulf Cooperation Council (GCC) region account for nearly six in every ten NRI term insurance purchases. Data showed this region contributed 59 per cent of total NRI term life insurance policies issued over FY22 to FY26 YTD. Most of these buyers are salaried professionals and business owners in sectors like construction, retail, and services. Lower premiums and rupee-settled benefits make India-based insurers attractive for Gulf-based NRIs. Europe and Australia-New Zealand have also seen rapid adoption of India-linked term life insurance, recording a combined compound annual growth rate (CAGR) of 87 per cent between FY22 and FY26 YTD. This growth is largely driven by tech professionals and long-term permanent residents choosing India-based protection plans. The analysis also pointed out that women are emerging as a growing segment among NRI term buyers. Female participation now stands at 15 per cent, with higher uptake from the UAE and North America. Almost 80 per cent of NRI buyers prefer monthly premium payment structures, making it the dominant choice. However, there has been a noticeable increase in single-premium policies, especially in the UAE, where some buyers choose to lock in 30-40 years of coverage upfront. The analysis outlined that India's insurance sector is becoming attractive for the NRIs. (ANI)
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