Term insurance purchases by non-resident Indians (NRIs) through India have risen twofold in the past two years, with younger customers making up a larger share of buyers, according to a Policybazaar report.
The report said that geopolitical strain, especially in West Asia, has pushed demand higher, resulting in a 35% month-on-month increase in term insurance purchases.
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“NRI term insurance purchases from India have doubled in two years, led by younger buyers. West Asia conflict has led to a 35% MoM [month-over-month] spike,” the report stated.
People in the 25–35 age group now contribute 54% of overall demand, compared with 44% in 2024, the findings showed.
This marks a clear increase in participation from younger NRIs.
Policybazaar said West Asia has become the main centre of growth in NRI term insurance demand, contributing more than half of the total.
The United Arab Emirates remains the leading market, supported by its sizeable Indian expatriate base.
Demand from the US and Canada, along with the UK, follows West Asia, while Saudi Arabia and Qatar continue to hold an important share.
The increase in demand from West Asia has been linked mainly to the continuing conflict in the region, as more NRIs seek financial protection for families in India.
On coverage choices, the report said high-income earners with annual income above Rs4m ($42,883) are selecting cover worth Rs30m–50m, pointing to greater emphasis on income replacement and longer-term financial security.
Nearly 80% of NRIs are choosing pure term plans instead of return-of-premium products, the report said.
It added that around 85–90% are selecting limited pay options so they can finish premium payments earlier while keeping long-duration cover.
The data also showed that longer policy terms are preferred, with 67% opting for coverage beyond 70 years and 32% choosing cover in the 60–70 years bracket.
The report said digital adoption has simplified the process, with most NRIs finding digital claim handling easier.
It added that buying term insurance from India gives NRIs premiums that are 20–30% lower than in overseas markets.
The process is mostly digital and includes video medicals, limited paperwork and faster issuance. Claim payouts also remain tax-free, according to the report.
