Term insurance purchases by non-resident Indians (NRIs) through India have doubled over the past two years, with younger customers accounting for a growing share of buyers, according to a report by Policybazaar.
The report also noted that geopolitical tensions, particularly in West Asia, have driven a recent surge in demand, with term insurance purchases rising by 35% on a month-on-month basis.
Individuals aged 25 to 35 now account for 54% of total demand, up from 44% in 2024, highlighting a notable rise in participation among younger NRIs.
Rising demand from West Asia has largely been attributed to ongoing regional conflict, prompting more NRIs to seek financial protection for their families back in India.
According to Policybazaar, higher-income individuals – those earning above INR4m ($42,883) annually – are typically opting for coverage in the range of INR30m to INR50m, reflecting a stronger focus on income replacement and long-term financial security.
The report also found that nearly 80% of NRIs prefer pure term plans over return-of-premium options. In addition, around 85% to 90% are choosing limited pay structures, allowing them to complete premium payments earlier while maintaining extended coverage.
Longer policy durations are also gaining traction, with 67% opting for coverage beyond the age of 70, while 32% prefer policies that extend into the 60–70 age range.