Is an Indian term policy still valid after moving abroad?

Policyholders must notify insurers of their NRI status and update KYC with key documents

- Anil Poste

Many young professionals purchase a term plan in India while working here. But what if, a few years later, they take up a job overseas and their tax status changes from resident to non-resident Indian? Will their policy continue to provide cover on foreign soil? Yes.

Term plans bought in India are valid even after one becomes an NRI. But policyholders must fulfill certain formalities to ensure their cover continues seamlessly. Here's what you need to know to ensure your policy stays active and provides seamless coverage.

Declaration of NRI status
"Key point is when you move abroad, you must write to your insurer and declare your change of status. Policies remain valid, but companies generally ask you to update your KYC or submit a change-of-residency form," said Nishant Kohli, founder of NRI Nivesh.

Insurers typically ask for supporting documents such as a visa, work permit, passport, and proof of overseas address. Without this declaration, claims can become complicated later.

Mainak Adhikary, head of operations at Go Digit Life Insurance, agreed. "Most Indian insurers extend life insurance coverage to NRIs and term plans purchased in India stay valid even after residency status change. But, you must notify your insurer in case of change in residency status, ensuring your records are updated and helps in smooth claim processing," he said.

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