Term insurance purchases by non-resident Indians (NRIs) from India have doubled over the past two years, driven by rising awareness and geopolitical uncertainties, according to a report by Policybazaar.
The report highlights a sharp 35% month-on-month increase in demand, largely influenced by ongoing tensions in West Asia. Younger NRIs are playing a significant role in this growth, with individuals aged 25–35 now accounting for 54% of total purchases, up from 44% in 2024.
United Arab Emirates remains the largest contributor to NRI demand, supported by its large Indian expatriate population. Other key markets include the United States, Canada, and United Kingdom, while Saudi Arabia and Qatar continue to contribute significantly.
Higher-income NRIs are opting for larger coverage, typically in the range of ₹3–5 crore, reflecting a growing focus on income protection and long-term financial security. The report also notes a clear preference for pure term plans, chosen by nearly 80% of buyers, over return-of-premium products.
Additionally, 85–90% of customers are selecting limited pay options to complete premium payments early while maintaining long-term coverage. Longer policy durations are also gaining traction, with a majority opting for coverage extending beyond 70 years.
Digital adoption has further accelerated growth, with streamlined processes such as video medicals, minimal paperwork, and faster policy issuance making it easier for NRIs to purchase insurance remotely. Lower premiums—estimated to be 20–30% cheaper than overseas markets—and tax-free claim payouts add to the appeal.
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