CHENNAI: The demand for term insurance among non-resident Indians (NRIs) has doubled in the last two years, witnessing a steep 35% month-on-month spike, reportedly driven by the West Asia crisis.
According to data released by insurance aggregator Policybazaar on Thursday, younger buyers in the age group of 25–35 years are driving this growth, as global uncertainty is forcing NRIs to invest in term insurance to secure their families.
Of the total demand, 54% comes from individuals in the 25 to 35 age group, up from 44% in 2024. This sharp shift towards younger buyers reflects protection-first financial planning among globally travelling professionals.
The West Asia corridor contributes over 50% of total demand, with recent geopolitical tensions pushing NRIs to prioritise financial protection for families back home.
The UAE leads with the highest share, supported by its large Indian expatriate base, followed by the US and Canada, and the UK. Saudi Arabia and Qatar further highlight that West Asia remains a key region where many NRIs are actively purchasing term insurance from India.
Term insurance choices among NRIs are increasingly aligned with income maturity, while remaining anchored in adequate protection. High-income earners with incomes above ₹40 lakh opt for ₹3–5 crore coverage, indicating a stronger focus on income replacement and long-term security.
Mid-income NRIs in the ₹20–40 lakh bracket prefer ₹2–3 crore cover, reflecting growing financial responsibilities, while entry-level earners earning below ₹20 lakh incline towards ₹1 crore cover, balancing affordability with essential protection.
Close to 80% of NRIs are opting for pure term plans over return-of-premium term products, while nearly 85–90% prefer limited pay options, completing premiums early. This ensures continued life cover without long-term payment commitments.
Additionally, a majority of NRI customers are opting for cover beyond 70 years (67%), while 32% choose coverage in the 60–70 years range, reflecting a clear inclination towards securing financial protection well into later life stages.
Varun Agarwal, Head of Term Insurance at Policybazaar.com, said, “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, including video medicals for covers up to ₹5 crore, along with tax-free premiums and costs that are 20–30% lower than international markets.”