Purchases of term insurance by Non-Resident Indians (NRIs) from India have doubled over the past two years, driven largely by younger buyers, according to a report by Policybazaar.

The report highlighted that ongoing geopolitical tensions, particularly in West Asia, have led to a sharp rise in demand, with a 35 per cent month-on-month spike in term insurance purchases.

It stated: “NRI term insurance purchases from India have doubled in two years, led by younger buyers. West Asia conflict has led to a 35 per cent MoM spike.”

According to the findings, individuals aged 25-35 now account for 54 per cent of the total demand, up from 44 per cent in 2024. This indicates a significant shift towards younger buyers, reflecting a growing preference for protection-first financial planning among globally mobile professionals.

The report also pointed out that West Asia has emerged as a key growth hub for term insurance demand among NRIs. The region contributes over 50 per cent of the total demand, with countries like the UAE leading due to its large Indian expatriate population. This is followed by demand from the US and Canada, as well as the UK, while Saudi Arabia and Qatar also remain important markets.

The surge in demand from West Asia is largely attributed to the ongoing conflict in the region, which has prompted NRIs to prioritise financial protection for their families back in India.

In terms of coverage preferences, the report noted that high-income earners with annual incomes above ₹40 lakh are opting for coverage between ₹3 crore and ₹5 crore, indicating a stronger focus on income replacement and long-term financial security.

The report further highlighted that close to 80 per cent of NRIs prefer pure term insurance plans over return-of-premium products. Additionally, around 85-90 per cent of buyers are opting for limited pay options, allowing them to complete premium payments early while maintaining long-term coverage.

A majority of NRI customers are also choosing extended coverage durations, with 67 per cent opting for coverage beyond 70 years and 32 per cent selecting coverage in the 60-70 years range, reflecting a clear preference for long-term financial protection.

The report also noted that digital adoption has made the process easier, with most NRIs finding digital claim management more convenient.

For NRIs, purchasing term insurance from India offers several advantages, including premiums that are 20-30 per cent lower than in international markets. The process is largely digital, featuring video medicals, minimal paperwork, and quick issuance, enabling seamless access from anywhere in the world. Additionally, claim payouts remain tax-free, making it an attractive option for financial planning.

Published on April 10, 2026