For high-net-worth individuals (HNIs) living abroad, financial planning isn’t just about managing global investments — it’s about securing their family’s future. One of the simplest but most powerful tools in this plan is term insurance. For Non-Resident Indians (NRIs), the case for buying it from India is becoming increasingly compelling.
How Much Is Enough?
HNIs often have complex financial lives, with high incomes and international assets. But their expenses — like children’s education, elder care, and lifestyle commitments — are equally big. A common thumb rule is to have life cover worth at least 10 times one’s annual income. So, for an NRI earning ₹50 lakh a year, that’s ₹5 crore. But experts caution that this should just be the starting point.
If you factor in the cost of sending children abroad for studies, a non-working spouse, or liabilities like loans, the ideal cover could easily climb to ₹7–10 crore. Add in inflation and currency fluctuations, and it’s clear that a flat number won’t cut it — the cover must match real-world needs.
Why Buying From India Makes Sense
Many NRIs assume they should buy insurance in their country of residence. But Indian insurers often offer better value. Premiums for term insurance in India are typically 20–50% cheaper than those in countries like the US, Singapore, or the Middle East. On top of that, NRIs get an 18% GST waiver on premiums, making it even more affordable.
India’s Unique Advantages
Some Indian term plans come with a “return of premium” option — if you survive the policy term, all your premiums are refunded. This feature is rare abroad and gives policyholders extra peace of mind.
Indian policies also offer worldwide coverage. Whether you move to another country or return to India later, your policy stays valid. This flexibility is crucial for globally mobile professionals and retirees whose plans might change over time.
Convenient Process, Tax-Free Benefits
The process of buying term insurance from India has become much smoother for NRIs. Video medical check-ups have replaced physical visits, and applications can be completed remotely.
Perhaps most importantly, under Indian law, term insurance payouts are fully tax-free. This means that if the worst happens, your family receives the entire sum assured, without complicated tax hurdles or deductions.
A Smart Piece of the Financial Puzzle
For HNI NRIs, term insurance is more than just income replacement — it’s a way to protect their family’s lifestyle, dignity, and dreams. By taking a thoughtful approach to how much coverage they need and choosing the right policy, many are discovering that India offers unmatched value.
With its combination of competitive pricing, tax efficiency, reliable claims, and global coverage, India is emerging as the go-to destination for NRIs looking to safeguard their loved ones — and their legacy.
