Is Term Insurance Cover Valid Outside India?


People can invest in term insurance if they are outside India, according to Indian insurance laws. Their term insurance will remain valid while they are residing outside India.

If you want to know more about the validity of term insurance outside India, then read this article.

Term insurance is crucial in providing financial protection to the policyholder’s family. In case the policyholder passes away during the tenure of the policy, then the insurer can provide the sum assured to the beneficiaries. Thus, a term plan can ensure a family’s financial safety.

But what happens to the term insurance validity if an Indian decides to move or temporarily visit another country?

Non-resident Indians (NRIs) and people moving abroad are allowed to purchase term insurance policies offered by Indian insurance providers. Here are some things NRIs and Indians moving abroad should keep in mind while purchasing term insurance-

When the policy is purchased, the person should be an Indian citizen. Thus, the person will be covered when he/she stays abroad for education, employment, etc.

The person shouldn’t have applied or isn’t planning to apply for citizenship on foreign soil in the near future.

But there are two options for an NRI who doesn’t have a term plan in India while moving to a foreign country but wants to buy one-

A person can purchase a term insurance policy when he/she visits India. He/she needs to finish the underwriting formalities. After that, the policy will be considered valid.

An NRI can buy term insurance from India while living abroad via Mail Order Business facility. The policy will be verified by an Indian diplomat, notary, or an official of the Indian embassy.

NRI Term Insurance Features

Sum Assured

The sum assured is the amount that the beneficiaries will receive in case the policyholder passes away during the tenure of the policy. The sum assured is paid to the beneficiary in his/her non-resident external (NRE) account.

Policy Tenure

The term of the policy for NRIs ranges between 6 months and 25 years. The minimum entry age is 18 years. The maximum entry age differs between 55 years and 60 years based on the NRI’s age and health at the time of buying the policy.


The premium differs based on various factors, such as the sum assured, policy tenure, add-ons purchased, if any, etc. The premium can be paid via the insured person’s NRE/NRO account or online by remittance in foreign currency.

Documents Required

There are a few documents that an NRI needs to submit to purchase a term insurance plan, such as proposal form, age proof, income proof, attested passport copy, health report, application fee, etc.

Claim Process

If the NRI policyholder passes away during the tenure of the policy, then the beneficiary needs to submit a few additional documents along with the regular documents like claim initiation form, original policy document, copy of identity and address proof. Here are the additional documents- employer certificate along with contact and leave details, embalming certificate by the embalming establishment in case the body was embalmed to preserve it on death, copy of death certificate that should be verified by the Indian Embassy situated in the country of death.

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