War effect: Gulf-based NRIs double down on Indian term life plans

Geopolitical tensions in West Asia are driving Gulf-based NRIs towards Indian term insurance plans, attracted by lower premiums and GST exemptions

There might be signs of a thaw, but the West Asia conflict, which exposed the region’s fragility, has triggered a sense of uncertainty among non-resident Indians (NRIs) living in the Gulf. While few seem to be relocating and are instead choosing to wait for the storm to blow over, many are seeking some kind of security, including in the form of term life insurance policies.

The significant cost advantage that Indian insurance products offer is also drawing them in. 

“We are observing a rise in the number of NRI customers from the Gulf region reaching out to us and actively considering insurance proposals in India,” says Rajesh Krishnan, chief operations and customer experience officer at Bajaj Life Insurance. “This reflects a broader industry trend, with lower premiums in India and GST (goods and services tax) exemptions helping boost interest among NRIs.” The Gulf Cooperation Council (GCC) region, he adds, now contributes over half of the total NRI demand for such policies. 

According to industry experts, March-April 2026 saw a 35 per cent month-on-month increase in business premium of term policies, triggered by the geopolitical tensions. There is also a view that though the demand for term insurance increased immediately after the West Asian conflict started, it normalised after April. Overall, premium growth was subdued in May compared to the April number, it rose by 4.8 per cent month-on-month from April to May, owing to weak growth in group insurance premiums. 

That said, Varun Agarwal, head of term insurance at Policybazaar, too, says that around half of the demand for their term insurance policies comes from the West Asia region. “The West Asia corridor contributes over 50 per cent of total demand, with recent geopolitical tensions pushing NRIs to prioritise financial protection for families back home,” Agarwal says. 

Apart from concerns around regional stability, there are other reasons for NRIs purchasing insurance in India. Among these are restrictions on buying insurance in their respective countries and the higher premiums that Indian insurers offer. 

Additionally, many NRIs prefer Indian policies because their beneficiaries, such as parents or spouses, are based in India, making claim settlement and receipt of benefits more convenient. “The NRIs who buy protection plans are increasingly opting for a significantly higher sum assured, aligning coverage with income replacement needs, mortgage obligations and dependent responsibilities in India,” says Rushabh Gandhi, managing director and chief executive officer of IndiaFirst Life Insurance. “These customers tend to be deliberate and research-driven, focusing on the adequacy of coverage rather than cost.” 

Although there is an increase in demand for higher sum insured covers, the premiums charged are largely unchanged because life insurers do not price policies solely based on the customer’s geographic location. While insurers may consider factors such as occupation or exposure to specific risks when assessing an application, residence in a Gulf country by itself does not automatically result in higher premiums. 

There has been a growth of term insurance products in India after the GST rate on individual life insurance policies was rationalised in September 2025. It was brought down from 18 per cent to zero. Insurers said the move improved affordability and boosted demand for protection policies, particularly higher sum-assured covers, in the second half of FY26. Several private insurers reported an increase in the share of their term insurance products in the year when compared to the year earlier as a result of these changes.