- atlasinsights
- 27 Feb 2026
- #NRI News #nrihealthinsurance #nrihealthcoverage #indianhealthinsurance #globalhealthcoverage #nrifamilyprotection #healthinsuranceplans #healthpolicyindia #medicalcoverage #healthinsurancebenefits #affordablehealthcoverage #insuranceforparents #nrihealthsolutions #digitalhealthinsurance
For Non-Resident Indians (NRIs), purchasing health and term insurance in India presents an attractive option due to affordable premiums and extensive coverage. Indian insurance companies offer plans that are often more economical than those available in foreign countries, making them an ideal choice for NRIs who want to protect their families back home without overburdening their finances. These policies are customized to suit the needs of Indian families, offering high coverage at a fraction of the cost of international insurance.
GST Refund on Insurance Premiums for NRIs
One of the standout advantages of buying health and term insurance in India is the Goods and Services Tax (GST) refund on premiums. While health and term insurance policies attract an 18% GST in India, NRIs can claim a GST refund, reducing the overall cost of their policies. To qualify for this refund, the following conditions must be met:
- NRI status: The policyholder must be a Non-Resident Indian.
- Payment via NRE Account: Premiums must be paid from an NRE (Non-Resident External) account to comply with FEMA regulations.
- Annual Premium Payments: Only annual premium payments qualify for the GST refund, not monthly or quarterly payments.
To process the refund, NRIs need to submit the required documents, which typically include:
- A copy of the PAN card.
- Valid Indian and foreign address proof.
- NRE bank account statement.
- A passport with entry/exit stamps.
Once the required documentation is submitted, the GST refund is generally processed within 15 working days, further lowering the cost of the policy.
Tax Benefits for NRIs Under Indian Tax Laws
Apart from the GST refund, NRIs can take advantage of substantial tax benefits under the Indian Income Tax Act:
- Section 80C – Life and Term Insurance Premiums: NRIs can claim deductions up to ₹1.5 lakh per year for premiums paid towards life and term insurance policies. This helps reduce the taxable income and offers significant tax savings.
- Section 80D – Health Insurance Premiums: Deductions are available for premiums paid for health insurance policies, covering self, spouse, dependent children, and parents:
- ₹25,000 for self, spouse, and children.
- An additional ₹25,000 for parents under 60 years of age.
- Up to ₹50,000 for senior citizen parents (above 60 years).
- Section 10D – Tax-Free Death Benefit: The entire sum assured received by the nominee after the policyholder’s death is exempt from tax under Section 10D.
Managing Insurance Policies from Abroad
For NRIs, managing insurance policies from abroad has become significantly easier with the introduction of digital platforms by many Indian insurers. These user-friendly interfaces allow NRIs to buy, renew, and manage their policies online, ensuring hassle-free access to documents and payment options. Premium payments can be securely made through NRE accounts, and policy documents can be downloaded at any time, offering flexibility and convenience. It’s important to note that while multiple payment options such as monthly, quarterly, and half-yearly are available, only annual payments qualify for the GST refund. NRIs should choose the right payment frequency to take full advantage of these benefits.
Why NRIs Should Consider Indian Insurance
Choosing health and term insurance in India is not just about supporting and protecting family members—it’s also a practical, financially sound decision. Here are the key reasons why NRIs should opt for insurance policies in India:
- Lower Premium Costs: Indian insurance policies typically offer lower premiums compared to global alternatives, providing cost-effective coverage for NRIs and their families.
- GST Refund: Policies purchased in India are subject to an 18% GST, but NRIs can claim a GST refund, effectively reducing the cost of their premiums.
- Tax Benefits: Indian insurance offers significant tax advantages under Sections 80C and 80D of the Indian Income Tax Act, helping NRIs save on their taxable income.
- Tax-Free Death Benefit: Under Section 10D, the death benefit from a term insurance policy is tax-free, ensuring the beneficiary receives the full sum assured without any deductions.
- Online Management: Managing insurance policies from abroad is easy with digital platforms. NRIs can access their policy documents, renew plans, and make payments at their convenience, all through secure online portals.
- Protection for Aging Parents and Dependents: Indian insurance plans offer protection for aging parents and dependents back home, ensuring their financial security even when the policyholder resides abroad.
With these features, Indian insurance policies provide NRIs with a blend of affordability, ease of access, and peace of mind—making them an ideal choice for securing the financial future of loved ones in India, no matter where the NRI resides.
