NRI Insurance 2026

• Affordable premium rates

  : Compared to many countries offering life insurance plans, the premium rates of NRI term insurance policies are highly affordable.

• Hassle -free procedures

  : The NRIs can purchase a life insurance plan in India based on simple steps such as providing the required documents, choosing a comfortable premium payment method, etc.

• The Tata AIA assurance

  : Tata AIA Life Insurance registered an Individual Death claim settlement ratio19 of 99.41% during FY 2024-25.

• Non-resident Indian taxation

  : When the policyholder is investing in a life insurance plan, the NRI income tax benefits⁶ are as follows. The premium paid and the payout received will qualify for a tax deduction and exemption benefit based on the income earned and payouts provided in India under Section 80C and Section 10(10D) of the Income Tax Act, 1961, subject to fulfilling conditions specified therein. GST-free premiums when paid via SWIFT, NRE, or Forex accounts⁶.
  

• Shield family from business risks

  : NRI Customers can also avail themselves of the policy under the Married Women Property Act (MWP) and ensure that the family is safe from the claims of creditors in future.

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  Currency of Premium Payment

  : Always check the currency options before buying. Paying via NRE/FCNR/NRO account offers convenience and avoids currency conversion.
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  Repatriation of Funds

  : Understand how funds received will be transferred to a foreign account. Some policies allow repatriable payouts, making it easy to access funds abroad.
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  Tax benefits

  : NRIs can claim tax deductions⁶ under Section 80C on premiums paid in India. Benefits at maturity or death may be tax-free under Section 10(10D) if conditions are met. Always check specific plan terms and tax eligibility.
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  Sum assured

  : Choose a sum assured that suits your family needs. Premiums may differ based on age, policy term, and coverage amount.
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  Riders and add-ons

  : Riders give extra protection, such as critical illness or accidental death cover. Choose riders¹⁶ wisely based on personal needs.
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  Plan flexibility and top-up options

  : Some policies allow additional top-up premiums or flexible payouts. This helps in adjusting investment with changing financial goals.
  
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  Exclusions and policy rules

  : Check the exclusions such as suicide clause, non-payment, and specific health conditions not covered by the policy.
  

These points may help you choose the best life insurance policy in India for NRI based on your individual needs and family protection goals.

• Assess family requirements:

  Select a coverage amount based on current liabilities and the family’s future financial responsibilities.

• Check premium payment options:

  Choose policies that allow payments through Non-Resident External (NRE) or Foreign Currency Non-Resident (FCNR) accounts for flexibility.

• Consider tax benefits in India

  Opt for plans offering deductions under Section 80C and tax-exempt⁶ maturity under Section 10(10D) of the Income Tax Act.

• Review claim payout flexibility

  Ensure the policy allows repatriable claim settlement if your nominee resides outside India.

• Understand policy terms clearly

  Check the lock-in period, exclusions, renewal options, and claim documentation before selecting a plan.

• Section 80C deductions:

  NRIs can claim tax deductions⁶ up to ₹1.5 lakh annually on life insurance premiums paid, reducing taxable income significantly.

• Section 10(10D) benefits:

  Maturity proceeds, and death benefits are tax-free² under Section 10(10D) if annual premium doesn't exceed specified limits.

• DTAA advantages:

  Double Taxation Avoidance Agreements with countries like UAE, USA, UK provide tax relief and prevent double taxation on insurance proceeds.

• GST benefits:

  No GST on premium payments through NRE accounts or SWIFT transfers, providing additional cost savings for NRI policyholders.

• Inform the Insurer:

  The nominee must notify the insurer immediately after the policyholder’s death.

• Fill the Claim Form:

  A claim form must be completed with accurate details.

• Submit Required Documents:

  Documents like the death certificate, identity proof, etc to be submitted.

• Verification by Insurer:

  The insurer verifies all submitted documents and claim details.

• Claim Decision and Settlement:

  If the provided information and documents are correct, the claim is approved, and the amount is disbursed to the nominee. Below is the regulatory mandated turnaround time for claim settlement:
• a. Death Claim (Without Investigation): 15 days from the date of intimation of claim.
• b. Death Claim (With Investigation): 45 days from the date of intimation of claim.

For further guidance, you can visit the Tata AIA Claim Settlement Ratio page.