Can NRIs buy Term Life Insurance in India?

Yes. A Non-Resident Indian can buy Term Insurance in India in largely the same way as a resident, subject to the insurer's underwriting, KYC, and documentation norms. The policy pays a fixed sum assured to the nominee if the insured person passes away during the policy term. Being based outside India does not usually stop an NRI from applying. Most insurers accept applications from several countries, subject to their own underwriting rules for that country and occupation.

Why should NRIs consider buying Term Insurance in India?

NRIs often buy a Term Plan in India, rather than in their country of residence, because it can work out more cost-effective for the same sum assured, while still protecting dependents who continue to live in India. Common reasons include:

• Being the primary or sole earning member for a family based in India
• Covering short-term household expenses such as rent, groceries, and utility bills
• Meeting long-term goals such as a child's education or marriage
• Repaying an outstanding home loan or other liability held in India

How do NRIs apply for Term Insurance in India?

An NRI applies for Term Insurance through broadly the same steps as a resident Indian:

Step 1: Filling in an application form

Step 2: Completing medical tests where required, and

Step 3: Submitting supporting documents.

What documents may an NRI need to submit for Term Insurance?

Documents typically requested include a duly filled application form, an attested copy of the passport, medical test reports, age proof and income proof, along with any additional documents the insurer may need based on the country of residence.

Can NRIs buy Term Insurance during a visit to India?

If you are visiting India, you can usually complete the application, medical tests, and document submission in person, in the same way as a resident applicant. This can simplify underwriting, since tests can be done at a network facility in India.

Can NRIs complete medical tests for Term Insurance while abroad?

If you apply while abroad, many insurers offer tele-medical checkups and digital document submission for eligible^# countries and sum assured levels. Some cases, particularly for higher sum assured or specific health disclosures, may still need an in-person medical examination, which can sometimes be arranged through an empaneled facility overseas.

How do NRIs pay Term Insurance premiums?

Premiums are usually payable through an NRE, NRO, or FCNR Bank Account, and the applicable account depends on the currency in which the policy is issued.

• If the policy is issued in Indian rupees, premiums are generally paid through a Non-Resident Ordinary Account.
• If the policy is issued in a foreign currency, premiums are generally paid through a Non-Resident External or Foreign Currency Non-Repatriable Account.

Because the Term Plan premium is fixed for the chosen sum assured, term, and payment mode at the time of purchase, currency movement mainly affects the actual cost where the policy itself is denominated in a foreign currency. A premium calculator can help estimate this before you apply.

What happens to my Term Insurance claim if NRI policyholder passes outside India?

Term Insurance bought in India typically offers worldwide coverage, so the nominee can usually claim the benefit regardless of the country where the policyholder passes away, except in specific excluded circumstances such as suicide within the first year of the policy. If the insured dies by suicide within the first policy year, insurers typically return the premiums paid rather than the full sum assured, subject to policy terms.

Section 45 of the Insurance Act, 1938 assures that once a policy has been continuously in force for three years, an insurer's ability to investigate or reject a death claim on ordinary grounds is significantly restricted by law. In practice, this means a family becomes eligible for a payout once the policy has run for three years and the claim otherwise meets the policy conditions.

What tax benefits apply to NRI policyholders?

NRIs who file income tax returns in India can generally claim the same tax treatment on a Term Plan as resident policyholders, subject to conditions. Premiums paid may qualify for a deduction under Section 123 (previously Section 80C) of the Income-tax Act 2025, once applicable, up to a combined limit of Rs 1,50,000 across eligible instruments. The death benefit paid to the nominee is generally exempt from tax under the applicable provisions of the Income Tax Act, subject to conditions being met.

Nominees should also check whether the country where they reside taxes Life Insurance proceeds received from India, since this depends on local tax rules rather than Indian law.

Does ABSLI provide Term Insurance Plans to NRIs?

Yes. NRIs considering buying Term Insurance from India may explore these plans by Aditya Birla Sun Life Insurance:

ABSLI Super Term Plan

ABSLI DigiShield Plan

NRIs can check their eligibility based on their country of residence and explore the plan's available coverage and premium payment options before applying. The applicable premium and policy terms may vary based on factors such as age, health, country of residence, and underwriting assessment.

You can estimate the cover you may need using the term insurance calculator, or explore the full range of plans on the ABSLI term insurance page.

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