1. If I choose to shift to a new country, will my life insurance still be valid?

Yes, the life insurance you have remains valid even when you shift to a new country like Saudi Arabia. However, as a conscious individual, you must inform your insurance provider about your shift to a new country.

2. Why is life insurance so important?

A life insurance policy is a promise to your family that they will be financially covered even in the absence of the breadwinner. Even when the earning member of the family is no longer around, the family will not have to struggle financially. That's one of the biggest reasons why life insurance is important!.

3. How can I purchase the right life insurance policy?

There are a few things that you must consider before purchasing a life insurance policy. Your family's financial needs, long-term financial needs, inflation in the future, current financial obligations, the required coverage, country of residence etc.

Life Insurance Plans for NRIs in Saudi Arabia 2025

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As discussed above, a life insurance policy can be of different types. Depending on the coverage and features offered, the policy differs. Below, we have discussed some of the popular life insurance policies that NRIs in Saudi Arabia can choose to purchase. These are:

Here are the different types of life insurance plans in India ^{[5] and [8]}:

Term insurance plan

One of the basic life insurance plans that provides coverage for a fixed period. These plans usually don’t offer any maturity benefits, making them more affordable. However, if you choose the refund of premium option, the premiums paid are returned on maturity. Term plans provide life coverage and pay a death benefit if the life assured passes away during the policy term. NRIs in Saudi Arabia can also buy term plans in India at lower premiums and enjoy the benefit of rupee-based investments while protecting their families.
2Endowment policy

This is a savings-oriented life insurance plan that covers the risk of premature demise and also has a maturity benefit. If the life assured passes away during the policy term, a death benefit is paid. On the other hand, if the life assured is alive when the policy matures, a maturity benefit is paid.
3Unit Linked Insurance Plan (ULIP)

This plan offers dual benefits—life insurance coverage and wealth building. Premiums are split between life cover and investment, allowing the policyholder to participate in the financial market and earn market-linked returns. There are also the flexible benefits of partial withdrawals and switching. ULIPs are popular among NRIs as these plans allow investments in market-linked funds alongside providing life insurance cover and tax benefits under Indian tax laws.
Money Back Policy

Similar to an endowment policy, but with periodic payouts during the policy term. These survival benefits are distributed over the policy's duration.
Whole Life Policy

This insurance policy offers coverage for the life assured's entire life. The policy covers the life assured up to 99 or 100 years of age. In case of death during the coverage term, a death benefit is paid. However, if the life assured survives the tenure, a maturity benefit is paid.
Child Plan

Child plans to secure a child's financial future often include an inbuilt premium waiver, where the insurer covers premium payments if the parent passes away, ensuring the plan continues.
Annuity/Pension Plan

Annuity Plans accumulate premiums as assets and pay them out as regular income (annuity) or a lump sum after retirement, based on the policyholder's preferences.

There are multiple reasons why NRIs in Saudi Arabia can consider a life insurance policy in India. It provides more than just life insurance coverage. Here are some of the striking reasons why you may purchase a life insurance policy in India:

Financial Cover

The first and foremost purpose of life insurance is to provide life insurance coverage to the family of the life assured. If you have a family with a single earning member or have financial goals for your family, it is a smart choice to purchase life insurance that provides sufficient financial coverage. That's exactly what life insurance in India guarantees you!
Tax Benefits²

Another meaningful reason to buy a life insurance plan is to avail tax benefits. Under Section 80C of the Income Tax Act of 1961, NRIs in Saudi Arabia can avail of tax benefits of up to ₹1.5 lakhs subject to provisions of the Act. This is applicable to the gross total income of the life assured.

To avail of income tax benefits, the life insurance must be purchased in the name of the NRI, their spouse, or children. Also, the premium paid must not exceed 10% of the sum assured. While the death benefit is tax-free, certain tax benefits are also available on the maturity benefit if certain conditions are met.
Affordable Premiums

The premium for life insurance in India is quite affordable compared to various other countries. So, purchasing a life cover in India not only safeguards your family financially but is also easy on your pockets.
Global Coverages

One of the best parts of life insurance for NRIs in Saudi Arabia is that most of the policies offer global coverage. This means that even if you choose to move to a new country, your life insurance may remain intact. However, it is crucial to inform your insurer and check the coverage limitations of the life insurance policy.