The platform reported a 35% month-on-month (MoM) rise in term insurance purchases following recent geopolitical tensions in West Asia, highlighting increased focus on financial protection among overseas Indians.
Younger NRIs lead surge in demand
Policybazaar data showed that overall NRI term insurance adoption has doubled in two years, with millennials forming the core of the shift. Individuals aged 25–35 accounted for 54% of total demand, up from 44% in 2024, indicating a growing preference for early financial planning among globally mobile professionals.
The West Asia corridor emerged as a key demand driver, contributing over 50% of total purchases. The UAE led regional demand, followed by the US, Canada and the UK, while Saudi Arabia and Qatar also remained significant markets.
Rising focus on higher coverage and long-term protection
The data indicated that coverage choices among NRIs vary by income level. High-income earners (above ₹40 lakh annually) opted for ₹3–5 crore cover, while those earning ₹20–40 lakh preferred ₹2–3 crore protection. Entry-level earners (below ₹20 lakh) mostly chose ₹1 crore cover.
Around 80% of NRIs preferred pure term insurance plans over return-of-premium products, while 85–90% opted for limited pay options, allowing them to complete premiums early and maintain long-term coverage.
In terms of policy duration, 67% of buyers chose coverage beyond age 70, while 32% opted for coverage between 60–70 years. Only 1% selected coverage below 60 years, reflecting a strong preference for extended protection.
Health and accident riders gain traction
Rider preferences showed a stronger tilt toward accident-related protection. Accidental Total and Permanent Disability (ATPD) riders were chosen by 40% of buyers, while accidental death riders accounted for 30%.
Critical illness rider adoption increased from 4% to 7%, though it remains relatively low, suggesting scope for greater awareness around health-related risks.
Digital access and cost advantage support India-linked purchases
Policybazaar noted that NRIs are opting for term insurance from India due to lower premiums and digital convenience. Policies purchased from India are typically 20–30% cheaper than international alternatives, the platform said.
It added that fully digital processes, including video medical examinations, minimal paperwork and faster issuance, are making cross-border purchases easier. Claims are also increasingly being processed digitally, with payouts credited to NRE or NRO accounts, often in partial tranches for immediate needs.
Geopolitical tensions influencing buying patterns
According to Policybazaar, geopolitical uncertainty has had a direct impact on demand.
“Term insurance is no longer a decision NRIs are postponing. Purchases from India have doubled, largely driven by younger, digitally savvy professionals,” said Varun Agarwal, Head of Term Insurance at Policybazaar.com.
He added that the recent 35% MoM growth in demand reflects how global uncertainties are pushing NRIs to secure financial protection for their families back home.
