Does Term Insurance Pay If Death Occurs Outside India?

Today, millions of Indians live, work, or study abroad. Whether it’s a software engineer in the US, a nurse in the UK, or a student in Canada, we carry our families’ dreams with us wherever we go. And naturally, many people wonder:

“If something happens to me while I’m outside India, will my term insurance still pay?”

It’s one of the most important and emotionally loaded questions families ask. After all, the entire purpose of buying term insurance is to ensure your loved ones are protected, no matter where life takes you.

The reassuring answer is: Yes, term insurance covers death that occurs outside India, provided the policy is valid and the circumstances are within the policy’s terms and conditions.

Let’s understand how this works in detail, the rules that make it possible, and how to make sure your family’s claim is settled smoothly even if you’re living or travelling abroad.

The Short Answer, Yes, Term Insurance Covers Death Outside India

If you’re an Indian citizen with a valid term insurance plan, your coverage remains active globally.

That means even if death occurs while you’re outside India, whether due to natural causes, illness, or an accident, your nominee can still file a claim and receive the full benefit amount.

The only conditions are:

• The policy must be active (all premiums paid).
• The death must not fall under policy exclusions (like war or illegal activity).
• All documents related to the death must be properly submitted and verified.

So, as long as your policy is in good standing and your disclosures were honest, your family’s claim is protected, even across international borders.

What IRDAI Rules Say About Global Coverage

The Insurance Regulatory and Development Authority of India (IRDAI) regulates all life insurance policies in India, including those involving deaths abroad.

IRDAI does not restrict claim settlements based on geography. If the insurer is satisfied that the death is genuine, the claim must be honoured.

Here’s what IRDAI’s framework ensures:

• Term insurance remains valid worldwide unless specific exclusions are mentioned in the policy.
• Claims can be filed and processed from anywhere, as long as proper documentation is provided.
• Insurers are legally bound to settle genuine claims within 30 days of receiving complete documents.

This means your term insurance, once issued in India, provides global protection by default.

How Term Insurance Works for Indians Living or Travelling Abroad

1. Indian Residents Travelling Abroad
If you are temporarily abroad for work, study, or travel, your existing term policy remains fully valid. You don’t need any special endorsement or modification, as long as your policy is active, your coverage follows you anywhere in the world.

2. Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs)
NRIs and OCIs can also buy or continue Indian term insurance policies. Once issued, these policies provide worldwide protection under the same terms as residents.

All they need to do is:

• Pay premiums in Indian Rupees or through an NRE/NRO bank account.
• Maintain an Indian address or provide an overseas contact address to the insurer.
• Ensure regular communication for renewals and document submissions.

So whether you’re in India or overseas, your loved ones remain financially protected.

Required Documents for Claim from Abroad

If the policyholder passes away outside India, the nominee must submit certain documents for claim processing.

Here’s the checklist:

1. Original policy document
   
2. Claim form (available online or at ABSLI branches)
   
3. Death certificate issued by local authorities abroad
   
4. Attestation of death certificate by the Indian Embassy or Consulate in that country
   
5. Passport copies of both the policyholder and nominee
   
6. Medical or hospital records, if death occurred in a medical facility
   
7. Bank details of the nominee (Indian bank account preferred)
   
8. Any investigation or police report, if death was accidental

All these documents can be uploaded digitally or sent through an authorised representative in India.

Once received, the insurer verifies authenticity through embassy attestation and processes the claim as per IRDAI timelines.

Currency and Claim Settlement Process

Even when death occurs abroad, the claim is always paid in Indian Rupees to the nominee’s Indian bank account.

Here’s how it works:

• The insurer calculates the claim amount as per the sum assured.
• Payment is made electronically to the nominee’s registered Indian bank account.
• For NRIs, funds can be repatriated abroad as per RBI’s FEMA guidelines using NRE/NRO accounts.

Importantly, IRDAI’s 15-day rule for claim settlement applies even in such cases, the insurer must release payment within 15 days of receiving all necessary documents¹.

Situations Where Death Outside India May Not Be Covered

While most genuine deaths are covered, there are some exclusions that all policyholders should know.
1. Death in War or Conflict Zones
If death occurs in an active war zone or during participation in combat (military or civil), the claim may be excluded.

2. Death Due to Terrorism or Riots
Certain term plans exclude deaths resulting from terrorism, riots, or civil unrest, especially in high-risk countries. Always check your policy wording.

3. Death During Hazardous Activities
If you’re participating in extreme sports, aviation (as pilot or crew), or other dangerous activities not declared during policy purchase, the insurer may deny the claim.

4. Death in Countries Under Sanctions or Without Diplomatic Presence
If the country does not have an Indian Embassy or is under international sanctions, verification can be difficult, potentially delaying or affecting claim approval.

5. Death Due to Illegal Acts or Self-Inflicted Harm
Any death resulting from criminal activities or self-inflicted injury is excluded from coverage globally.

Apart from these rare exclusions, all natural and accidental deaths are covered under a valid term policy.

Example, How Overseas Claims Work in Real Life

Let’s look at a practical example.

Case Study:
Rajesh, a 38-year-old IT professional from Pune, moved to Dubai for work. He had purchased a ₹1.5 crore plan before leaving India. Five years later, he passed away due to a medical condition while still in Dubai.

His wife Anita, living in Pune, filed a claim with by submitting:

• The Dubai-issued death certificate (attested by the Indian Consulate),
• Rajesh’s passport copy,
• Hospital discharge summary, and
• Policy documents.

The claim was verified through the consulate, and he received the full ₹1.5 crore payout within 15 days into her Indian bank account.

This example shows that distance doesn’t dilute the promise, the process remains clear and compassionate.

How NRIs Can Buy or Continue Term Insurance from India

Even if you’ve settled abroad, you can still buy or maintain Indian term insurance easily. Here’s how:

1. Application and KYC: Complete the proposal form and submit ID/address proof.
   
2. Medical Tests: Undergo required tests either in India or at an empanelled diagnostic centre abroad.
   
3. Premium Payment: Pay in INR via NRE/NRO account or Indian credit card.
   
4. Policy Issuance: Once approved, the plan offers worldwide coverage.
   
5. Nominee Setup: Nominate a family member living in India to simplify claim handling.

So your protection continues uninterrupted, regardless of your current country of residence.

How ABSLI Supports Global Policyholders and Nominees

Aditya Birla Sun Life Insurance (ABSLI) recognises that families today are global, and protection must be borderless.

That’s why its systems are designed for simplicity and peace of mind.

1. Global Claim Assistance
Dedicated teams guide nominees through documentation, attestation, and submission requirements for claims arising outside India.

2. Acceptance of Embassy-Attested Documents
ABSLI accepts foreign-issued death certificates once authenticated by the local Indian Consulate, no need for international travel or embassy visits by nominees.

3. Online Claim Intimation
Nominees can file claims through ABSLI’s website or email, upload documents digitally, and track progress online.

4. Timely and Transparent Settlement
Most valid claims, including international ones, are settled well within IRDAI’s prescribed timelines.

5. Compassionate Communication
Every case is handled with care, understanding that it represents a family’s emotional and financial loss, not just paperwork.

ABSLI’s promise remains constant: to honour every genuine claim quickly, fairly, and respectfully, wherever life takes you.

Key Takeaways

• Term insurance covers death occurring outside India.
• The policy remains valid globally if premiums are paid and terms are followed.
• IRDAI ensures that claim settlements cannot be denied solely based on location.
• Claims require embassy-attested documents for verification.
• Payments are made in Indian Rupees to the nominee’s Indian bank account.
• Exclusions like war, terrorism, or illegal acts may apply.
• ABSLI offers seamless claim support for global customers and families.

Conclusion

In today’s world, your work or dreams might take you to another country, but your family’s protection should never be limited by borders.

A term insurance plan from a trusted insurer like Aditya Birla Sun Life Insurance ensures that no matter where life leads you, your loved ones remain secure.

Whether you’re working in Singapore, studying in the UK, or travelling to the US, your policy travels with you, quietly, reliably, and without compromise.

Because true protection isn’t about where you live, it’s about knowing your family’s future is always in safe hands.