UAE: Why Indian expats should get life insurance as soon as they arrive in Emirates

NRIs are increasingly purchasing policies due to the growth in the South Asian country and the growing interest to return to the country

The demand for life insurance among non-resident Indians (NRIs) in the UAE is rising, fuelled by affordable premiums, good returns, promising economic growth opportunities, and the increasing number of expats choosing to return to their homeland.

Rajesh Krishnan, chief operations and customer experience officer at Bajaj Allianz Life said many NRIs from UAE aged between 31 and 45 subscribe to life insurance policies.

“More NRIs are showing interest in life insurance. Our and the Indian regulators are promoting awareness and educating people because life insurance is necessary. Importantly, the premium one pays is minuscule as part of his/her total investment that he/she does across various products,” he said.

Bajaj Allianz Life has experienced significant growth among NRIs (Non-Resident Indians), particularly those living in the UAE, as stated by Krishnan in an interview with Khaleej Times. This trend is driven by several factors:

1. Demographic Insights: Around 60% of their UAE-based customers are aged between 31 and 45, with an average annual policy size of Rs250,000. This age group is likely focusing on long-term financial planning and investment.
2. Timing of Purchase: Krishnan emphasized the importance of buying insurance policies early upon arrival in the UAE to avoid higher premiums. Early subscription can lead to significant cost savings.
3. Investment in India: Many NRIs are investing in insurance policies due to India’s growing economy and attractive investment opportunities. The Indian financial market is well-regulated and transparent, offering high returns on various asset classes, making it appealing for NRIs to invest back in their home country.
4. Cost Advantage: One of the major financial benefits highlighted is the cost-effectiveness of term insurance in India. Premiums for term insurance in India are up to 2.5 times cheaper than in the UAE and other GCC countries. This is attributed to lower mortality rates charged in India.
5. Service Enhancements: Bajaj Allianz Life has strengthened its presence in the GCC region, especially with its representative office in Dubai. This office has enhanced services for NRIs, including digital claims submissions, auto-payments through international credit cards, and comprehensive customer support via video calls, live chat, and a responsive call center that operates across different time zones.

Overall, these factors contribute to the increasing popularity of Bajaj Allianz Life’s insurance policies among NRIs, particularly those in the UAE, as they seek cost-effective, regulated, and high-return investment options in India.