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Can an NRI or a PIO buy a Life Insurance policy in India?

Can an NRI or a PIO buy a Life Insurance policy in India?


Can an NRI or a PIO buy a Life Insurance policy in India?

If you are of Indian origin or a resident living abroad with your family living in India, you are surely eligible to invest in a Life Insurance policy that protects your loved ones. It does not matter even if you are not a citizen of India. The Foreign Exchange Management Act allows NRIs to buy any Life Insurance plan that meets their requirements.



Do I need to be present in India at the time of buying the policy?


Well, the answer is generally no, you do not have to be. But it’s always best to check with the Insurance company as this might vary from company to company. You can purchase your Life Insurance policy overseas by communication through writing with the insurance company in India, for which there would be specific further charges that you will have to bear.  

To invest in a Life Insurance policy in India from abroad, you will have to undergo a medical test and send in the report to the respective insurance company in India. For these tests, you will have to take care of the payments of this medical examination yourself as you will be taking them abroad. If you happen to buy the policy in India, you will not be required to bear these expenses as they will be part of the cost of your Insurance policy.



Will the country I am present in affect my Life Insurance application in any way?


Life Insurance companies do take into consideration the country you are applying from. If the country you are living in is a high-risk country you might be asked for a high premium. A high-risk country is one that is prone to civil and military issues, violent attacks, or has an unstable government. If you are in a low-risk country with a stable government and law and order system, then your application shouldn’t have any issues related to your country of residence. You can choose your insurance plan based on the country you live in, your age and other applicable information.



How do I pay my premiums?


You can make online payments towards your Life Insurance policies by any of the following methods:

  • NRO bank account
  • Remittance in foreign currency
  • FCNR/ NRE bank account

Do check in which currency your Life Insurance policy has been issued to you. If the policy is issued in a foreign currency, then you can use an NRE/FCNR account. If the policy is in Indian Rupees, you can pay your premiums through an NRO account.


Also, you’d be happy to know that irrespective of whether you are an NRI, a person of Indian origin living abroad or a resident Indian, there are no extra cost of premiums for you as the risk involved would not be any different. The only time the premium you pay would increase is if there is an increase in any associated risks.


The maturity or death benefit of the policy can be given out to any specified bank account. With several options available to you as an NRI, there should be nothing worrying you or preventing you from taking up a policy. If you still have questions, you can always have your insurance agent help you choose the right policy for you.


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