Policybazaar Report: NRI Term Insurance Purchases From India Double Amid Growing Demand & Competitive Benefits

NRIs are increasingly opting for term insurance from India to secure their families and financial commitments. A recent analysis by Policybazaar reveals a significant rise in the purchase of India-linked term life cover among NRIs. This trend highlights the growing preference for these policies due to competitive premiums, long-term options, and rupee-denominated benefits.

Over the last two years, there has been a 100% increase in term insurance purchases by NRIs from India. This surge underscores the trust and preference among NRIs for India-based term life cover. The appeal lies in competitive premiums, long-term policy options, and rupee-denominated benefits that protect families and assets back home.

Gulf Region Leads NRI Term Insurance Demand

The UAE-Gulf region is a major contributor, accounting for 59% of total NRI term life insurance policies issued through Policybazaar between FY22 and FY26 YTD. Most customers are salaried professionals and business owners in sectors like construction, retail, and services. Gulf-based NRIs often maintain financial ties in India, such as dependents, home loans, and investments.

Europe and Australia-New Zealand have seen remarkable growth with a combined CAGR of 87% over four years. This increase is driven by tech professionals and long-term PR holders seeking India-linked protection. Rising awareness, high policy tenure, and rupee-settled benefits make these regions promising markets for future NRI term insurance growth.

Younger NRIs Drive Early Adoption

Younger demographics are leading the adoption of term insurance. A notable 62% of NRI buyers are under 40 years old. These early adopters typically fall between 30 and 39 years old, securing long-term plans spanning 35 to 40 years. This trend reflects an understanding of the advantages of early health underwriting and locking in low premiums when young.

A significant portion of NRIs opts for coverage in the ₹2–3 crore range. This balance provides sufficient family protection while maintaining reasonable premiums. It is especially popular among Gulf-based and ANZ professionals who are early in their career peaks.

Income Brackets Influence Insurance Choices

The data shows that 45% of NRI term buyers have annual incomes between ₹20–35 lakh. These middle and upper-middle-income NRIs balance affordability with high coverage. Additionally, 16% report annual incomes above ₹50 lakh, indicating growing interest among affluent individuals.

Women are becoming an important demographic among NRI term buyers, with female participation at 15%. Higher uptake is observed from the UAE and North America, reflecting greater financial independence and proactive planning among women.

Monthly Premiums Preferred by Most NRIs

Nearly 80% of NRI buyers prefer monthly premium structures as their payment mode. While this remains dominant, there's a noticeable rise in single-premium policies—particularly in the UAE—where some buyers choose to lock in coverage for 30–40 years upfront.

The average policy tenure across NRI segments now stands at 36.7 years. The most popular terms range between 35 to 40 years until retirement or dependent independence milestones. Younger buyers aged 30–35 increasingly select plans covering them till age 70–75.

"In just two years, NRI purchases of India-based term insurance have doubled, recording a 100% growth rate," said Varun Agarwal, Head of Term Insurance at Policybazaar. "This momentum has been led by Gulf-based NRIs, who now account for nearly 60% of all such policies bought via Policybazaar."