Best NRI Term Insurance Plans in India with High Claim Ratios

Being an NRI, one often thinks of ways to provide security for a family that stays back in India. The good news? You can still buy the best term insurance from top Indian companies and give your family the financial security they deserve, no matter where you live.

In this article, we will talk about NRI term insurance, why it is so important, and which plans have high claim ratios, so your family can really depend on them during times of need.

What is NRI term insurance?

Let’s keep it simple. An NRI term insurance is a life insurance scheme designed for Indians residing abroad. It works exactly like any other regular term plan in India: you pay a small premium every year (or month), and if anything were to happen to you during the policy period, your family would get a fixed amount called the sum assured.

This money can help your family pay for:

• Home loans
• Children’s education
• Daily living expenses
• Medical or emergency expenses

In other words, term insurance provides complete peace of mind, knowing that no matter where you are in the world, your loved ones will never face financial burden.

Why Should NRIs Buy Term Insurance from India?

You might wonder, “Can’t I just buy insurance abroad?

Of course, you can. But Indian term plans come with great benefits that many NRIs prefer. Let’s see why:

• Affordable Premiums: Generally, term insurance is cheaper in India compared to many foreign countries. One can avail oneself of high coverage at cheaper rates.
• Strong Claim Record: Indian insurance companies, such as LIC, HDFC Life, and ICICI Prudential, have very high claim settlement ratios, meaning they settle most of the claims efficiently and equitably.
• Easy Online Purchase: Many companies now let you buy NRI term insurance online without needing to visit India.
• Protection for Family in India: The Payout is in India, in Indian Rupees; your family can access it with ease.
• Global Coverage: Most NRI plans provide worldwide coverage. Whether you live in Dubai, London, or Sydney, you are protected.

Best NRI Term Insurance Plans in India (with High Claim Ratios)

Here are some of the most trusted and best term insurance options for NRIs. All these companies have a strong record of claim settlement and are known for their reliable service.

HDFC Life Click 2 Protect Super

• Claim Settlement Ratio: Approximately 99.4%
• Minimum Cover: ₹50 lakh
• Maximum Policy Term: Up to 40 years

Why it’s good for NRIs:

• You can buy it online from anywhere.
• Offers flexible alternatives, including “Life Protect” for basic cover, “Life & Income” for cover plus a monthly income for the family, and “Income Plus” for increasing income benefits.
• Medicals can be done abroad, in approved centres.

Best for NRIs who want flexible cover and a steady income for their families.

Max Life Smart Secure Plus Plan

• Claim Settlement Ratio: Approximately 99.5%
• Policy Term: Up to 85 years of age
• Sum Insured: ₹ 25 lakh onwards

Why it’s great:

• Option to add accidental death and disability benefits.
• You can increase your cover after major life events, such as marriage or having kids.
• Buy instantly online with simple medical checks for NRIs.

Ideal for NRIs requiring long-term protection and flexible add-ons.

ICICI Prudential iProtect Smart

• Claim Settlement Ratio: Approximately 99.2%
• Policy Term: Up to 40 years
• Sum Assured: ₹25 lakh-₹1crore+

Why choose this?

• Covers death for any reason, including COVID-19.
• Option to receive cash in a lump sum or as monthly income.
• Global coverage for NRIs.

Best for NRIs looking for a simple, reliable, and internationally accepted scheme.

Tata AIA Sampoorna Raksha Supreme

• Claim Settlement Ratio: About 99.1%
• Sum Assured: ₹50 lakh and above

Why NRIs love it:

• Lifetime coverage up to 100 years of age.
• Flexible premium payment: one-time, limited years, or regular.
• High claim-settling and immense trust in the Tata brand.

Ideal for NRIs who seek lifetime coverage and security for their families.

LIC Tech Term Plan

• Claim Settlement Ratio: Approximately 98.5%
• Sum Assured: Minimum ₹ 50 lakh

Why it’s reliable:

• LIC is India’s oldest and most trusted insurer.
• Offers global coverage to NRIs.
• You can buy and manage it online with ease.

Best for NRIs who prefer the trust and legacy of LIC.

Aditya Birla Sun Life DigiShield Plan

• Claim Settlement Ratio: Approximately 99%

Special Features:

• 10 options to suit various life goals.
• Option for survival benefits if you outlive the term.
• Can choose either a lump sum or a monthly payout for your family.

Ideal for NRIs who seek protection with flexibility.

What is a Claim Settlement Ratio?

In choosing the best term insurance, always check for the CSR or Claim Settlement Ratio. It tells you how many claims an insurance company settles out of every 100 claims received.

For example,

If the company’s CSR is 99%, for instance, this would imply that they settled 99 out of every 100 claims-a sure sign of trust and reliability.

Always go for companies whose CSR is above 97%. They are more likely to pay your family without delay or trouble.

Documents required for purchasing NRI term insurance

Buying a plan is simple and can be done online. Here’s what you’ll usually need:

• Copy of passport and visa
• Proof of income, including payslips or bank statements
• Medical test reports: Some insurers accept tests conducted abroad.
• Address proof (India and overseas)
• Recent photograph and PAN card

Once these are submitted, the company reviews your application and issues the policy within days.

How to Pay Premiums from Abroad

NRIs can easily pay premiums using:

• Credit or debit cards
• E-banking
• NRE/NRO bank accounts
• International remittance

Most insurers also send payment reminders via email or WhatsApp so that you never miss a due date.

Tax Benefits for NRIs

Under Section 80C of the Indian Income Tax Act, you can claim a deduction for premiums paid towards term insurance in India. The amount your family receives is also tax-free under Section 10(10D) as per current rules. So, apart from protection, you also get tax savings.

Tips to Choose the Right NRI Term Plan

• Claim ratio check: Opt for insurers with 97% and above.
• Compare premiums: Use online tools to find the best deal.
• Choose the right cover: Ideally, 10-15 times your annual income.
• Add riders: like critical illness or accidental death benefits.
• Be honest: Mention your health, job, and country correctly.

Conclusion:

Being an NRI does not mean being away from responsibility. Your family in India still depends on you, both emotionally and financially. A simple NRI term insurance plan will make a world of difference. It’s not just about money; it’s about peace, love, and assuring your loved ones will always be safe. Choose the best term insurance plan from an insurance company in India with a high claim ratio, and it shall give your loved ones the gift of financial security-wherever life takes them.