NRIs See 35% Monthly Increase in Life Insurance Purchases Amid Iran Conflict

Term Insurance Demand Among NRIs Doubles Amid Global Uncertainties

The demand for term insurance among non-resident Indians (NRIs) buying policies from India has seen a significant surge, with the demand doubling over the past two years, according to data released by Policybazaar. The Iran war has added to the urgency, driving a clear behavioural shift among NRI buyers.

Younger professionals have been leading the surge in term insurance purchases, with global uncertainties accelerating decision-making. The US-Israel war against Iran, in particular, has driven a 35 percent month-on-month rise in term insurance purchases in March, highlighting the impact of geopolitical risks on NRI financial planning.

Varun Agarwal, Head of Term Insurance at Policybazaar.com, notes that term insurance is no longer a decision that NRIs are delaying. Purchases from India have doubled, largely driven by younger, digitally savvy professionals. The seamless online journey, including video medicals for covers up to Rs 5 crore, along with tax-free premiums and costs that are 20-30 percent lower than international markets, have contributed to this shift.

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Key Statistics

The West Asia corridor remains the primary growth catalyst, accounting for over 50 percent of the demand, according to the report. The United Arab Emirates leads the market, followed by the US, Canada, and the UK. Countries such as Saudi Arabia and Qatar are also seeing steady traction.

Younger buyers, aged 25 to 35, account for 54 percent of the demand, up from 44 percent in 2024, highlighting a shift towards early financial planning. Income levels are shaping coverage decisions more clearly than before, with high-income earners opting for cover in the Rs 3 crore-Rs 5 crore range, signalling a stronger focus on income replacement and long-term security.

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Income-Based Coverage Decisions

Product preferences underline a shift towards simplicity and long-term cover. Nearly 80 percent of NRIs are opting for pure term plans instead of return-of-premium options, while 85 percent to 90 percent prefer limited pay structures that allow them to complete premium payments early. Around 67 percent of buyers are choosing coverage beyond the age of 70, while 32 percent prefer cover between 60 and 70 years, reflecting a clear preference for extended financial protection later in life.