Insurance for NRIs: What Policies You Need & What You Don’t

Are you an NRI living abroad and wondering what types of insurance policies you should actually carry? With options ranging from health and life to travel and property coverage, it’s easy to feel overwhelmed. The reality is that not every policy marketed to NRIs is necessary — but a few are absolutely essential to protect your family, assets, and peace of mind.

Let’s break down which policies matter, which don’t, and what to watch out for in 2025 under India’s insurance framework for Non-Resident Indians.

Why Insurance Matters for NRIs

Unlike residents, NRIs straddle two worlds: home in India and life abroad. This dual connection creates unique risks. A medical emergency during a visit to India, liability exposure while abroad, or unexpected property damage back home can quickly turn costly without proper coverage. With insurers now offering global plans, the key is to understand what’s worth buying — and what’s just unnecessary duplication.

Health Insurance for NRIs

Health insurance is the first layer of protection NRIs should consider.

Coverage While in India

If you frequently visit India, an India-based health insurance policy makes sense. Hospitalization, surgeries, and outpatient expenses can be covered during your stay. Most insurers allow NRIs to purchase health policies in India, provided you undergo medical checks and declare your residence status.

Global Health Insurance

If you live abroad long-term, global health policies (often offered by international insurers or local players with global tie-ups) may provide better protection. These cover treatments both abroad and in India, though premiums are higher.

What to Check

• Exclusions for pre-existing conditions
• Waiting periods for critical illnesses
• Age limits for renewal (some stop at 65–70, others allow lifelong renewal)
• Family coverage if dependents live in different countries

Life Insurance for NRIs

Life insurance is essential for NRIs with financial dependents in India or abroad.

Term Insurance Plans

Pure term life insurance is the most cost-effective option. Premiums can be paid through NRE/NRO accounts, and many Indian insurers accept proposals from NRIs online.

What to Avoid

Costly endowment or whole life plans marketed as “savings + insurance.” They often give low returns compared to mutual funds or other investments. Stick to term coverage unless you have a specific estate planning need.

Travel Insurance for NRIs

NRIs frequently traveling between countries should not skip travel insurance. It covers medical emergencies, trip cancellations, baggage loss, and accidents. Even if you have a health policy, many foreign countries (especially in Europe) mandate travel coverage for visa approvals.

Pro Tip

Buy travel insurance from the country of residence if it offers better international coverage. If visiting India for short trips, India-based insurers also provide visitor travel policies.

Property Insurance for NRIs

Many NRIs own residential or commercial properties in India. Protecting them from fire, theft, or natural calamities is critical. Property insurance in India can be purchased even while residing abroad.

What to Check

• Whether tenants are covered if property is rented out
• Policy exclusions for unoccupied homes
• Add-ons for burglary, earthquake, or terrorism cover

Liability Insurance for NRIs

Liability exposure abroad can be high. Personal liability insurance protects you if you’re sued for accidental damages or injuries caused to others. For high-net-worth NRIs, umbrella liability policies are worth exploring, especially in the US, UK, and Gulf.

Policies NRIs Usually Don’t Need

Not every policy is worth your money. Examples include:

• Duplicate health policies (if already covered abroad under an employer’s plan)
• Savings-linked life insurance in India with poor returns
• Agricultural property insurance (NRIs usually can’t hold such assets legally)

Key Considerations Before Buying Insurance

• Exclusions: Always check what’s not covered, especially with global health or travel insurance.
• Family Coverage: Ensure dependents across countries are included.
• Age & Renewal: Verify lifelong renewability for health and life policies.
• Currency & Premiums: Check if premiums are payable via NRE/NRO/FCNR accounts.
• Repatriation of Benefits: Confirm whether payouts can be credited abroad under FEMA rules.

Frequently Asked Questions (FAQs) on Insurance for NRIs

1. Can NRIs buy health insurance in India?
Yes, NRIs can purchase health insurance in India, but coverage is usually valid only for treatments within India. Some policies offer worldwide coverage at an additional premium. Always check for exclusions and whether international hospitalization is covered.

2. Is life insurance in India valid if I live abroad?
Yes, most Indian life insurance policies remain valid for NRIs living abroad. However, insurers may require additional medical tests or charge higher premiums depending on the country of residence.

3. Do NRIs need liability insurance?
Liability insurance is not commonly purchased by NRIs in India, but it may be useful if you own property or assets in India. Abroad, liability coverage is often included in home or auto insurance policies.

4. Should NRIs take travel insurance from India or abroad?
NRIs are better off purchasing travel insurance from their country of residence, as local policies abroad usually offer better global coverage, including medical evacuation and trip cancellation benefits.

5. Can NRIs insure property in India?
Yes, NRIs who own property in India can insure it under standard home insurance policies to cover risks such as fire, theft, or natural disasters. The premium can be paid in INR using NRE/NRO accounts.

6. What should NRIs check before buying insurance in India?

• Scope of coverage (India-only vs. worldwide)
• Age limits and family coverage
• Exclusions such as pre-existing diseases or maternity care
• Claim process if you are living abroad
• Premium payment options (NRE/NRO accounts, online transfers)

7. Do NRIs need to continue holding Indian insurance policies if they move abroad permanently?
Not necessarily. If you relocate permanently, you may prefer insurance products from your country of residence for better local coverage. However, life insurance and property insurance linked to assets in India may still be worth continuing.

Key Takeaway

For NRIs, insurance should be strategic, not impulsive. Health, life, travel, property, and liability policies each serve a purpose — but you don’t need them all. Prioritize health and life coverage if you have dependents, travel insurance for frequent flyers, property insurance for India-based assets, and liability insurance if living in high-risk jurisdictions. Avoid overlapping or low-return products, and always read the fine print before committing.