Rising Trend: NRIs Purchasing Health Insurance in India for Themselves and Parents

A growing number of Non-Resident Indians (NRIs) are purchasing health insurance plans in India not only for their parents but also for themselves. With rising medical costs globally and increasing uncertainty in healthcare systems abroad, NRIs see Indian insurance products as a reliable and cost-effective way to safeguard their families. While parents health insurance has long been a priority, younger NRIs are now recognising the advantages of maintaining their own policies in India.

Why NRIs are buying health insurance in India

Several factors are driving this trend:

• Escalating healthcare costs abroad: Medical treatment in countries like the US, UK, or Middle East is considerably more expensive compared to India. For NRIs who frequently travel home, having an Indian policy ensures access to affordable care.
• Ease of treatment during visits: NRIs returning for short visits often prefer treatment in India, where they trust the healthcare system and have family support.
• Parents’ coverage: The most common reason is to protect ageing parents from medical inflation. Policies tailored to senior citizens help NRIs manage costs without dipping into savings.
• Policy portability and flexibility: Many insurers in India now offer features that make policies easier to maintain, even when the policyholder resides abroad.

These reasons combine to make Indian health insurance not just a backup, but an essential part of NRIs’ financial planning.

Parents health insurance: still the top priority

For most NRIs, securing parents health insurance remains the first step. Ageing parents are more vulnerable to illnesses like diabetes, hypertension, and cardiac conditions, which require both preventive and emergency care.

Key features that attract NRIs include:

• Cashless hospitalisation: Wide networks of hospitals across India reduce the burden of upfront payments.
• Coverage for pre-existing diseases: Many senior citizen plans offer coverage after waiting periods, giving families peace of mind.
• High sum insured options: Policies now provide larger coverage amounts to match rising costs of treatment.
• Add-ons for domiciliary care: Options for home-based treatment, especially relevant for elderly parents.

By investing in these plans, NRIs ensure that their parents receive proper medical attention without the family needing to arrange large sums on short notice.

NRIs buying policies for themselves

While parent-focused coverage is still the primary driver, many NRIs are now purchasing health insurance plans for their own use in India. The main reasons include:

• Temporary stays: NRIs who spend extended periods in India during work breaks or between assignments prefer to have local coverage.
• Alternative to costly overseas insurance: For routine healthcare, Indian insurance policies provide more affordable protection compared to overseas plans.
• Future relocation: Many NRIs plan to return to India after retirement. Having an existing policy ensures continuity of coverage without fresh waiting periods.
• Tax benefits: Policies purchased in India may qualify for deductions under Indian tax laws if the NRI files returns in India.

This shift indicates a broader understanding that health insurance in India can be a valuable long-term asset.

Key considerations for NRIs

When choosing policies, NRIs need to be mindful of certain aspects:

1. Residency rules: Some insurers require the proposer to be present in India at the time of purchase.
2. Policy servicing: Premium payments can often be made online from abroad, but clarity on renewal procedures is essential.
3. Coverage scope: Not all policies cover treatment abroad; most are limited to India.
4. Currency of payment: Premiums are usually payable in Indian rupees, which may affect exchange rate planning.

Understanding these rules helps NRIs avoid complications and ensures uninterrupted coverage for themselves and their families.

Industry response to NRI demand

Insurers in India have started tailoring products to meet NRI needs. Digital-first policy servicing, simplified purchase procedures, and dedicated NRI helpdesks are increasingly common. Some companies are also exploring hybrid products that provide partial overseas coverage, though at higher premiums.

The industry recognises that NRIs represent a growing customer base with unique needs, particularly around parents health insurance. By expanding offerings, insurers are tapping into a demographic that values both affordability and family security.

Advantages of Indian health insurance for NRIs

• Lower premium costs: Compared to international health insurance policies, Indian plans remain significantly more affordable.
• Wider hospital access: Cashless networks make it easier to seek treatment quickly.
• Tailored for seniors: Specialised plans for parents and older adults provide targeted coverage.
• Continuity of care: Policies maintained over time avoid fresh waiting periods when NRIs return to India.

These advantages explain why more NRIs are making Indian health insurance an essential part of their strategy.

The role of financial planning

Health insurance should be seen as part of a broader financial plan. For NRIs, this includes:

• Allocating funds for premiums alongside investments.
• Reviewing policies annually to ensure adequate sums insured.
• Coordinating with siblings or family in India for claim support.
• Balancing overseas and Indian insurance needs.

By integrating insurance into long-term financial planning, NRIs protect their families from unpredictable medical expenses and strengthen financial stability.

Conclusion

The rising trend of NRIs purchasing health insurance plans in India reflects both practical necessity and emotional responsibility. While parents health insurance remains the top priority, more NRIs are also buying policies for themselves to prepare for visits, relocation, or rising healthcare costs. With insurers responding through better products and digital services, this shift is set to grow further. Ultimately, health insurance in India offers NRIs an affordable, reliable, and family-focused way to secure the wellbeing of their loved ones and themselves.