How NRIs in UAE Can Buy Life Insurance in India – Step-by-Step Guide

Stepwise Guideline for buying a Life Insurance Policy

You no longer have to be in India to sort your life insurance. With the entire process being done online, it's now simpler than you think to purchase a policy from the UAE. Here's how to do it:

Step 1: Choose the Right Plan Type

Before getting into paperwork, take some time to realise what you actually need from your life insurance. Life insurance companies offer a pool of choices. The plan you choose must suit your goals—whether protection, savings, or investment.

Here's a quick summary to guide you:

Tip: If safety is your prime concern, begin with a term plan—it's economical and provides high coverage to sustain your loved ones in the event of your absence.

Step 2: KYC and Documentation

Once you’ve picked your plan, the next step is to complete the KYC (Know Your Customer) process and upload the necessary documents. This can be done entirely online. You do not need to travel to India and submit the documents.

The following is a list of documents usually asked for:

• Identity proof
• Overseas address proof
• Income proof
• Copy of passport and Visa
• Medical reports, if applicable, etc.
• NRI questionnaire and Travel Questionnaire
• PIO/OCI Card is required where applicable

Make sure the information is accurate and updated to facilitate instant processing. Self-attest all documents and scan as a PDF for easy uploading.

Tip: Carefully verify the insurer's document checklist prior to uploading, as incomplete or wrong submissions can delay your application.

Step 3: Online Medical Process

In order to purchase the life insurance policy of your choice, you need to take a basic health evaluation. Fortunately, insurers have made this option easy for NRIs by offering flexible medical check options—

Here's how you can proceed:

• Option 1: Book a physical medical examination at an approved diagnostic centre in the UAE. Some insurers even have tie-ups with local centres.
• Option 2: Consider a telemedical assessment, where fundamental health screening is carried out via a video or phone call.

The nature of medical tests needed depends on your age, lifestyle, type of policy, and amount assured.

Tip: Always get the list of tests in advance. If further tests are needed, the insurer will let you know during underwriting. Providing accurate information about your health status ensures smoother approval and prevents claim-related problems down the road.

Step 4: Payment & Onboarding

After your documents and medical tests are cleared, the insurance company would underwrite the policy. If the proposal is approved, premium payment is the next step. As an NRI in the UAE, you can make it through either your NRE (Non-Resident External) or NRO (Non-Resident Ordinary) account—both maintained in INR.

If you earn your income abroad, the NRE account is more suitable because it's tax-free in India and you can have full repatriation. If you earn money in India, such as dividends or rent, then your NRO account would be more appropriate, though it's taxable and with repatriation restrictions.

You can pay online via debit or credit cards linked to these accounts. Just ensure there’s sufficient INR balance to avoid failed transactions. Ensure that your payment follows FEMA guidelines to prevent regulatory hiccups. After successful payment, you’ll receive a reference number to track your application. This officially starts your onboarding journey.

Tip: You can set the auto-debit feature from your NRE/NRO account to prevent missing out on future premiums. Also, keep your payment receipt and reference number handy for tracking or settling future disputes.

Step 5: Policy Issuance & Tracking

Once all is set, your policy becomes officially issued and you will receive your policy number. This takes the place of your reference number and will be your one-stop ID for all future dealings.

Tip: Keep your reference number handy until the policy is issued. From then on, your policy number will assist you with dealing with renewals, raising claims, or requests for service in the future.

Conclusion

Purchasing life insurance in India as a UAE resident may sound like a whole lot to handle initially. However, once you break it down, it's really not that difficult. With the availability of digital KYC, online medical tests, and INR payments via NRE/NRO accounts, the whole operation can be accomplished without having to leave the UAE. And with tracking facilities available after making the payment, you're never kept in the dark. Just take it step by step—choose the right plan, follow through with documentation, and stay updated. In the end, you’ll have peace of mind knowing your loved ones back home are financially protected.

FAQs

1. Is Aadhaar mandatory?

   No, Aadhaar is not mandatory for NRIs to purchase life insurance in India. You can use any other valid proof of identity, like your passport. However, if you possess an Aadhaar and have it linked with your PAN, you may be requested to furnish it during KYC.

   
   

2. Can I use my UAE address?

   Yes, NRIs can give their UAE residential address while filling out the proposal form. Just make sure it is the same as your overseas address proof, such as utility bills or your UAE residence visa.

   
   

3. For paying the premium, what account should I use?

   You may pay the premium through an NRE or NRO account. NRE would be a good option if your income is from abroad because it provides full repatriation and is exempt from tax. NRO would work for income earned in India, although with some limitations on repatriation.

   
   

4. Will I have to undergo medical tests in India?

   Many insurers include medical check-ups in the UAE or even provide telemedical consultations. If you're visiting India, you can even do it there. The type of tests depends on your age, policy value, and insurer’s requirements.