A new report from Policybazaar highlights a significant rise in term insurance purchases by non-resident Indians (NRIs), with overall demand doubling over the past two years and younger buyers playing an increasingly central role in the trend.
According to the findings, individuals between the ages of 25 and 35 now account for 54% of total demand, up from 44% in 2024. This shift underscores a growing awareness among younger NRIs about financial security and long-term planning for dependents in India. The report suggests that this demographic is prioritizing income protection and structured financial coverage earlier in their careers.
The data also points to a sharp recent increase in demand linked to geopolitical developments, particularly in West Asia. Purchases of term insurance policies rose by 35% on a month-on-month basis, reflecting heightened uncertainty in the region and its impact on expatriate populations. Many NRIs working in these areas appear to be responding by strengthening financial safeguards for their families back home.
Higher-income individuals are also contributing to the growth. Those earning above INR 4 million (approximately $42,883) annually are typically selecting coverage amounts ranging between INR 30 million and INR 50 million. This trend indicates a stronger emphasis on income replacement strategies and long-term financial resilience.
The report further reveals that nearly 80% of NRIs prefer pure term insurance plans over return-of-premium options, suggesting a focus on cost-effective protection rather than savings-linked products. Additionally, about 85% to 90% of buyers are opting for limited pay structures, allowing them to complete premium payments early while maintaining extended coverage periods.
Longer policy durations are gaining traction as well. Approximately 67% of buyers are choosing coverage extending beyond the age of 70, while another 32% prefer plans that last into their 60s or early 70s. The data reflects a broader shift toward comprehensive and long-term financial planning among the global Indian diaspora
