There has been a surge in non-resident Indians (NRIs) opting for term insurance from India doe to the ease, affordability, and accessibility offered by the Indian insurance market, according to Policybazaar, India's leading online insurance marketplace.
While various factors contribute to this growing interest, affordability and convenience emerge as the primary drivers. Policybazaar has witnessed a remarkable 130% year-on-year growth in demand among NRIs aged 18-60, with India becoming the preferred choice for those residing in countries like the US, UK, Canada, UAE, and Singapore
Several features and benefits are fueling this NRI demand for Indian term insurance:
Cost savings: Term policies from India can be up to 30-50% cheaper for NRIs in countries like the UAE and Singapore
Remote medical checks: Coverage of up to Rs 5 crore can be obtained with convenient tele-medical check-ups conducted in India, eliminating the need for physical visits.
Extended coverage: Unlike some countries with limitations on policy terms, Indian term plans offer longer coverage periods, extending up to 99 years.
"We're seeing exponential growth in term insurance purchases from NRIs, particularly those in the Gulf region and select European countries. Policybazaar is committed to expanding term insurance protection for both Indian and overseas markets. The competitive pricing, higher coverage limits, and streamlined processing offered by Indian insurers are major contributors to this demand. We're glad to see NRIs prioritizing their dependents' future by choosing Indian term insurance policies," said Sarbvir Singh, Joint Group CEO of Policybazaar.
Additional Benefits:
NRIs purchasing term insurance plans from India through their NRE accounts are eligible for an 18% GST exemption. This attractive pricing, combined with longer-term plans, has driven demand, particularly in the Gulf nations. Notably, 65% of term insurance buyers are from the Gulf region, with 35% coming from the UAE alone.
Rhishabh Garg, Head of Term Insurance at Policybazaar, elaborates on these features, "The Indian term insurance industry is evolving rapidly, offering innovative products designed for overseas consumers. NRIs are increasingly drawn to these consumer-centric features, which include return of premium, early payouts for critical illnesses, premium waivers for disability, and immediate claim assistance for funeral expenses."
NRIs with an average annual income exceeding Rs 35 lakh benefit from easy processing mechanisms. Additionally, insurers now offer a sum assured of up to Rs 5 crore, ensuring adequate coverage based on individual needs.
