What happens to an NRI’s life insurance policy if they become a foreign citizen?

In the tapestry of global citizenship, a curious situation often arises where a Non-Resident Indian (NRI) steps across the threshold of nationality, becoming a citizen of a foreign land. As they embark on this new chapter, will their life insurance policy be relevant in the changed status?

“Many NRIs seek citizenship of other countries. In such cases, those with NRI life insurance plans might be concerned about their policies and the associated benefits. The good news is that their policy remains valid, ensuring that both maturity and death benefits persist, regardless of any change in citizenship. Their premium payments will also continue as usual.  Most importantly, it is imperative to inform the insurance company in the event of a modification in residential status or nationality and to furnish the necessary documents,” said Rajesh Krishnan, Chief Operations Officer, Bajaj Allianz Life Insurance.

One also might need to take the Other Citizen of India (OCI) card. This card acts as the key that maintains the policy’s validity, even if one becomes a full-fledged citizen of the new country. However, policyholder or the agent must inform his insurance provider about their altered status and share their new address.

“The life insurance policy is valid provided the policyholder has an OCI card. Additionally, the policyholder needs to disclose or inform the insurance company about the status change i.e. citizen of the new country and update them with the new address,” said Rhishabh Garg, Head–Term Insurance, Policybazaar.com.

The next question is about premium payments. The policyholder can continue to contribute to his policy by paying premiums without any hiccups. The change in citizenship doesn't hinder his ability to continue with her or his life insurance as the policy status remains unaltered. Similarly, the maturity or death benefits offered by the policy remain unaffected by the change in nationality.