The demand for term insurance among Non-Resident Indians (NRIs) has doubled over the past two years. Recent data from Policybazaar highlights a significant shift in buying patterns, spurred by global geopolitical uncertainties and a growing focus on early financial planning among younger professionals.
Key Growth Drivers
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Geopolitical Volatility: Following recent tensions in West Asia, there was a sharp 35% month-on-month surge in term insurance purchases. NRIs in these regions are increasingly prioritizing immediate financial security for their families in India.
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Youth-Led Demand: Younger NRIs (ages 25–35) now account for 54% of total demand, a significant jump from 44% in 2024.
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Cost Advantage: Term insurance premiums in India remain 20–30% lower than in many international markets. Additionally, these premiums are tax-free, making them a highly attractive protection tool.
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Digital Ease: Features like video medical examinations for coverage up to ₹5 crore and seamless online claims processing have removed traditional barriers for overseas buyers.
Market Insights & Buying Trends
| Category | Typical Coverage | Market Share / Preference |
| High-Income (₹40L+ p.a.) | ₹3 crore – ₹5 crore | Driving the 45% YoY growth in high-value covers. |
| Mid-Income | ₹2 crore – ₹3 crore | Focused on income replacement and long-term liabilities. |
| Entry-Level | ₹1 crore | Balancing essential protection with cost-efficiency. |
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Regional Leaders: West Asia contributes over 50% of the total demand, with the UAE leading, followed by Saudi Arabia and Qatar. Outside of the Gulf, the US, Canada, and the UK remain primary markets.
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Product Choice: 80% of NRIs opt for “pure term” plans over return-of-premium products, indicating a clear shift toward protection-focused financial strategies.
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Coverage Duration: Long-term security is a priority, with 67% of buyers choosing coverage that extends beyond 70 years of age.
Industry Perspective
“Term insurance is no longer a decision NRIs are postponing. Purchases from India have doubled, largely driven by younger, digitally savvy professionals. This shift is being supported by seamless online journeys… along with tax-free premiums and costs that are 20–30% lower than international markets.”
— Varun Agarwal, Head of Term Insurance at
