The non-resident Indian (NRI) market has witnessed a significant expansion in both term and health insurance products, driven by increased financial awareness, the impact of the COVID-19 pandemic, and competitive premiums in India. With a growing customer base in regions like the UAE, US, and Saudi Arabia, NRIs are increasingly turning to these insurance options to protect their families and secure healthcare benefits back home.
Rising Demand for NRI Term Insurance
NRIs now make up 12% of India’s total term insurance customers, with a compound annual growth rate (CAGR) exceeding 50% over the past two financial years, according to new data released by Policybazaar. The pandemic has acted as a wake-up call for many NRIs, underscoring the importance of life insurance as a financial safety net. Competitive premiums in India, coupled with the convenience of purchasing policies online, have made term insurance an attractive option.
A majority (61%) of NRI term insurance buyers fall between the ages of 31-40, a period typically associated with peak professional growth and family responsibilities. Many in this age group have dependents—spouses, children, or elderly parents—prompting them to secure their families' future.
Gender dynamics have also shifted, with the share of female policyholders growing from 4% to 11% between FY 2023 and FY 2025. This reflects a growing trend of financial independence among women, especially in the post-pandemic landscape, where more women are actively involved in financial planning.
The UAE, US, and Saudi Arabia are leading regions for term insurance purchases. NRIs in high-income countries like the US and UK tend to select higher sums assured due to their higher living costs and income levels.
Growth in NRI Health Insurance
Health insurance among NRIs has grown rapidly, with a 140% increase in FY 2023-24 and 100% growth in FY 2024-25. This surge reflects the increasing importance placed on access to quality healthcare in India, especially as global healthcare costs rise. Many NRIs seek health insurance to cover elderly family members or use the policies themselves during visits to India. India’s improved healthcare infrastructure and competitive premiums have also contributed to this trend.
The majority (71%) of health insurance policyholders are aged 28-45, while 30% are aged 50 or above. The pandemic has heightened awareness about healthcare needs, especially for older dependents. Additionally, more women are being insured, indicating a growing gender balance in financial planning among NRIs.
The Gulf region accounts for 60% of NRI health insurance purchases, with the UAE leading at 31%. Other key regions include the US, UK, and Australia.
NRI preferences
Interest in advanced features such as OPD coverage has increased from 5% in FY 2021-22 to 25% in FY 2023-24. This shift reflects a growing focus on preventive care and chronic condition management. NRIs also increasingly prefer global coverage plans, with 25% opting for these policies to ensure family members have comprehensive care, regardless of their location.
Immediate healthcare access has become a priority for NRIs, with 40% of policyholders with pre-existing diseases (PEDs) opting for Day 1 coverage. This ensures that they can avail medical services from the start of the policy without waiting periods.
Claims for health insurance peak between October and December, aligning with NRIs’ travel schedules to India for planned medical procedures. The majority of policies offer coverage in the range of ₹25 lakhs to ₹1 crore, with 27% providing coverage exceeding ₹1 crore.
Why NRIs choose insurance back home
The growing interest in term and health insurance among NRIs reflects an increasing focus on financial security and healthcare access for their families in India. The surge in female participation across both insurance segments points to evolving financial independence and greater involvement of women in long-term planning.
With competitive premiums, digital platforms simplifying policy purchases, and advanced features such as global coverage, India’s insurance market offers significant value for NRIs.
Rising Demand for NRI Term Insurance
NRIs now make up 12% of India’s total term insurance customers, with a compound annual growth rate (CAGR) exceeding 50% over the past two financial years, according to new data released by Policybazaar. The pandemic has acted as a wake-up call for many NRIs, underscoring the importance of life insurance as a financial safety net. Competitive premiums in India, coupled with the convenience of purchasing policies online, have made term insurance an attractive option.
A majority (61%) of NRI term insurance buyers fall between the ages of 31-40, a period typically associated with peak professional growth and family responsibilities. Many in this age group have dependents—spouses, children, or elderly parents—prompting them to secure their families' future.
Gender dynamics have also shifted, with the share of female policyholders growing from 4% to 11% between FY 2023 and FY 2025. This reflects a growing trend of financial independence among women, especially in the post-pandemic landscape, where more women are actively involved in financial planning.
The UAE, US, and Saudi Arabia are leading regions for term insurance purchases. NRIs in high-income countries like the US and UK tend to select higher sums assured due to their higher living costs and income levels.
Growth in NRI Health Insurance
Health insurance among NRIs has grown rapidly, with a 140% increase in FY 2023-24 and 100% growth in FY 2024-25. This surge reflects the increasing importance placed on access to quality healthcare in India, especially as global healthcare costs rise. Many NRIs seek health insurance to cover elderly family members or use the policies themselves during visits to India. India’s improved healthcare infrastructure and competitive premiums have also contributed to this trend.
The majority (71%) of health insurance policyholders are aged 28-45, while 30% are aged 50 or above. The pandemic has heightened awareness about healthcare needs, especially for older dependents. Additionally, more women are being insured, indicating a growing gender balance in financial planning among NRIs.
The Gulf region accounts for 60% of NRI health insurance purchases, with the UAE leading at 31%. Other key regions include the US, UK, and Australia.
NRI preferences
Interest in advanced features such as OPD coverage has increased from 5% in FY 2021-22 to 25% in FY 2023-24. This shift reflects a growing focus on preventive care and chronic condition management. NRIs also increasingly prefer global coverage plans, with 25% opting for these policies to ensure family members have comprehensive care, regardless of their location.
Immediate healthcare access has become a priority for NRIs, with 40% of policyholders with pre-existing diseases (PEDs) opting for Day 1 coverage. This ensures that they can avail medical services from the start of the policy without waiting periods.
Claims for health insurance peak between October and December, aligning with NRIs’ travel schedules to India for planned medical procedures. The majority of policies offer coverage in the range of ₹25 lakhs to ₹1 crore, with 27% providing coverage exceeding ₹1 crore.
Why NRIs choose insurance back home
The growing interest in term and health insurance among NRIs reflects an increasing focus on financial security and healthcare access for their families in India. The surge in female participation across both insurance segments points to evolving financial independence and greater involvement of women in long-term planning.
With competitive premiums, digital platforms simplifying policy purchases, and advanced features such as global coverage, India’s insurance market offers significant value for NRIs.
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