The life insurance companies are turning more dynamic in nature. The insurers are crossing borders to make its reach even for those staying seven seas away. The policies that are offered cater to Laymen, Corporates to High Net Worth Individuals (HNIs). Now, the latest fad that has caught the attention of the insurers is the Non Resident Indians (NRIs). Not only insurance companies but also the financial institutions have turned their attention to them.

The NRIs spread across the world is quite large. It is estimated that there are around 100 million Indians stretched across the world. It serves as a good reason for insurance companies to come up with products aimed specifically for this creamy layer of the country. The reasons could be multiple when an individual decides to leave his/her own motherland and prefer to stay in a foreign country. The reasons for which an individual chooses a foreign land than his own are mainly vocation, business, employment, etc.

Being financially stable, opting for higher insurance cover becomes possible for this elite group. Not only insuring their lives but also the family becomes important. This holds great business potential for the insurance companies. There are some NRIs who intend on sending their children to India for education, etc. Some may even want to settle down in their own country after retirement. Keeping these views in mind, insurance companies have come up with a host of policies for them. Almost all private insurance companies offer policies to NRIs, sometimes treatment given to them also becomes specialised. For example, ICICI Prudential has set its office in Bahrain, which caters exclusively to the needs of the NRI community situated in the region. Saving a considerable amount is usually the central focus in an NRI’s life. The aim on savings and investments makes it easy for them to buy insurance. When they move for vocation, accumulating wealth for future forms a major part of their investment goals.

Keeping their needs in mind, the insurance companies, offer policies ranging from traditional, endowment to unit linked plans. The younger generation has a taste for risk, which is why unit linked plans have attracted the interest of the younger age group. This is mainly because of factors like flexibility, investment in funds that promise good returns, the demand for ULIPs have gone high. Certainly, the number of NRIs opting for insurance is increasing. The insurance mammoth too is not left out in this rat race; the Life Insurance Corporation of India (LIC) offers insurance policies to NRIs as well as the People of Indian Origin (PIO). Now, if you are wondering what PIOs are, they are those who have foreign nationality and reside in foreign countries. A person is considered to be of Indian Origin (excluding countries like Pakistan, Bangladesh or as announced by the state from time to time) if he/she at any time held an Indian passport or he/she or either of his/her parents or any of his/her grandparents was an Indian and a permanent resident in Undivided India at any time. A wife of an Indian Citizen or of a person of Indian Origin is also considered to be of Indian Origin if she may be of non-Indian parentage.

The process of buying an insurance policy is quite simple. Once bought, the person can pay the premiums through cheques drawn on his/her Non-Resident (External) Account or Foreign Currency (Non-Resident) Account with a Bank in India (or Joint Account provided the policyholder is one of the account holders).

NRIs wanting to have financial protection throughout are increasingly opting for insurance. Considering the growing number of NRIs, Life insurance is becoming a popular choice and is being added in the investment portfolios of the Non Resident Indians. In the days to come, there might be more policies that would perhaps be more vibrant in nature that would fit needs more perfectly.