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New Delhi — Non-Resident Indians (NRIs) are increasingly turning to India for their term life insurance needs, with purchases doubling over the past two years, according to new data from Policybazaar.com. The growth is being fuelled by competitive pricing, longer policy tenures, and the appeal of rupee-denominated payouts, which ensure financial security for families and assets back home.
The analysis highlights that NRIs from the United Arab Emirates (UAE) and other Gulf Cooperation Council (GCC) nations are leading the trend. Between FY22 and FY26 (year-to-date), buyers from these regions accounted for 59% of all NRI term life policies sold through the platform.
Why Gulf NRIs Dominate the Market
Policybazaar’s report attributes the Gulf’s dominance to a large base of Indian expatriates employed in sectors such as construction, retail, and services, many of whom have strong financial linkages to India. These include dependent family members, ongoing home loan obligations, and long-term investments in the Indian market.
While the Gulf remains the single largest contributor in volume terms, the platform notes that Europe and Australia-New Zealand (ANZ) markets have recorded the fastest growth, with a combined CAGR of 87% over the last four years. In these geographies, buyers are predominantly tech professionals and permanent residents seeking high-tenure, rupee-settled coverage to safeguard long-term family needs.
Younger NRIs Taking the Lead
One of the most notable shifts in buyer demographics is the surge in demand among younger NRIs. 62% of buyers are under the age of 40, with many opting for long-term policies spanning 35 to 40 years.
This early entry into term insurance allows them to lock in lower premiums through health underwriting conducted at a younger, healthier stage of life. It also aligns with the financial planning needs of those supporting young dependents or planning for future family responsibilities.
Income and Coverage Trends
The report sheds light on the financial profile of NRI buyers:
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₹25–35 lakh annual income bracket: This category forms the largest segment of NRI buyers, accounting for 45% of total purchases. It represents a balance between affordability and the ability to secure high coverage levels.
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High-income segment: Around 16% of NRI policyholders earn over ₹50 lakh annually, underscoring strong traction in the affluent expatriate market.
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Preferred cover size: The ₹2–3 crore sum assured remains the most popular choice, offering substantial protection while keeping premiums within reach.
Women Buyers on the Rise
The study also notes a steady increase in female participation. Women now make up 15% of NRI term insurance buyers, with particularly strong representation from the UAE and North America. This trend reflects growing financial independence, higher workforce participation, and proactive family protection planning among women abroad.
Payment Preferences and Policy Structure
Monthly premium payment remains the dominant choice for NRIs, with nearly 8 in 10 opting for it. However, a growing number of UAE-based buyers are showing interest in single-premium policies, particularly those that secure 30–40 years of coverage upfront. This option appeals to high-income expatriates who prefer one-time financial commitments for long-term peace of mind.
The average policy tenure across all NRI customer segments stands at 36.7 years, with most policies designed to provide coverage until the policyholder’s retirement or until their dependents achieve full financial independence.
The Appeal of India-Based Term Plans
According to Varun Agarwal, Head of Term Insurance at Policybazaar:
“This can be linked to the appeal of India-based term plans: lower premiums compared to global markets and the comfort of rupee-denominated payouts for dependents back home.”
Indian insurers have maintained cost competitiveness in the global term insurance market, offering high-sum assured policies at significantly lower premiums than comparable products abroad. Additionally, rupee-denominated payouts eliminate foreign exchange risks for families in India, ensuring that the intended benefits remain intact without currency fluctuations eroding value.
Industry Context and Outlook
The doubling of NRI term policy purchases in just two years reflects a broader shift in financial planning behaviour among overseas Indians. Rising awareness, digital onboarding, and simplified cross-border underwriting have made it easier for NRIs to secure coverage from India without lengthy in-person processes.
The platform’s findings suggest that policy tenure and stability of payouts are critical drivers, particularly among younger NRIs seeking multi-decade protection. Experts believe that this trend will continue as awareness spreads in other NRI hubs, including Southeast Asia and North America, where market penetration for India-based term products remains relatively low.
Key Takeaways from Policybazaar Data:
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2x growth in NRI term insurance purchases over two years.
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59% share held by UAE and GCC NRIs.
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Europe & ANZ markets grow at 87% CAGR over four years.
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62% of buyers are under 40 years old.
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₹2–3 crore sum assured is most preferred.
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Women form 15% of total NRI buyers.
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Average policy tenure: 36.7 years.
With rising incomes, sustained India ties, and the convenience of digital insurance platforms, India’s NRI-focused term life market is poised for continued double-digit growth, cementing its role as a key segment in the country’s insurance sector expansion story.
Key Highlights:
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Purchases via Policybazaar up 2x in last 2 years.
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UAE & GCC account for 59% of all NRI policies.
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Europe & ANZ see fastest growth — 87% CAGR in 4 years.
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62% of buyers are under 40, locking in long-term low premiums.
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Most popular cover: ₹2–3 crore sum assured.
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Women buyers now at 15%, with strong growth from UAE & North America.
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Average policy tenure: 36.7 years.
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