1. Why has the UAE become a top choice for rich Indians?

There are several reasons why more and more people are choosing to shift base to the UAE. The topmost reasons may be to hedge the tax liability of India, access a broader overseas market suitable for business, grow of business, etc. 1

2. How can NRIs in the UAE purchase term insurance?

For NRIs in India, there are two ways to purchase a term plan insurance policy: 5 NRIs can simply purchase a plan during their visit to India If not in India, NRIs may purchase term insurance through mail order business.

3. Do NRIs living in the UAE get tax benefits on term insurance?

Yes, Section 80C of the Income Tax Act of 1961 provides tax deductions of up to ₹1.5 lakhs for premiums paid against a term insurance policy. 6

4. Do I have to undergo a medical examination during policy revival?

Yes, like others, NRIs in UAE need to undergo a medical examination at the time of policy renewal to adjust the premium accordingly. 5

Term Insurance for NRIs in UAE 2025

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Be it India or abroad, different individuals have different situations and different needs. With term plans, NRIs in the UAE get the option to choose from several plan options. Persons of Indian Origin (PIOs) and Overseas Citizens of India (OCI) can purchase life insurance to ensure their loved ones stay financially secure. Make sure you understand the different types of term plans so that you can choose the right one.

The following types of plans are available:⁴

The way a term plan works for NRIs in the UAE is quite similar to how it works in India. However, some of these plans can offer you features that are specifically suited to your needs as an NRI in the UAE. Keep in mind that when you choose term insurance, certain components go into the making of a plan. These include:

The sum assured
Policy term
Premium paying term
Premium paying frequency
Optional riders, if any

Based on these details, your age and other risk factors, the premium is determined. You pay the premium over the chosen premium paying term and in the selected frequency. NRIs in the UAE can pay the premiums through direct bank transfers using NRE or NRO bank accounts or in the form of Swift Transactions through Overseas Bank Accounts.

During the policy tenure, if the life assured passes away, the death benefit is paid. On the other hand, if the policy matures and the life assured is alive, no maturity benefit is paid. However, if you have opted for the return of premium term plan, your premiums would be refunded on maturity.

The following types of plans are available:⁴

As an NRI, you would want to safeguard the future of your loved ones, whether they are in India or abroad with you. Multiple reasons drive the interest of NRIs, especially the ones in the UAE, in buying term insurance plans in India. Some of these may be:

Tax Benefits⁶

Non-resident Indians, like Indian residents, are eligible for certain tax benefits for purchasing a term insurance plan. Section 80C of the Income Tax Act of 1961 provides a tax deduction of up to ₹1.5 lakhs to the NRIs under old tax regime. However, the premium of the policy must not cross 10% of the sum assured amount.
The Benefit of the Grace Period⁵

To continue availing the coverage of a term insurance policy, it is compulsory to renew the policy before its expiry. If the policy crosses the expiry date without renewal, it lapses. However, NRIs have a grace period of 15 days, even after expiry, to get the policy renewed without getting terminated.
Pay From Anywhere⁵

The necessary payments for the term insurance can be made from anywhere using internet banking. All you need is an approved bank account that permits internet banking.
Coverage Guaranteed^,7

Once an NRI has purchased a term insurance policy, the plan provides coverage irrespective of the country where the life assured resides.
GST Exemptions³

As an NRI, if you plan to purchase a term insurance policy in India, you may avail yourself of a GST exemption. Those who purchase term insurance through their NRE accounts are eligible to get the GST exemption of 18%.