Endowment, money-back and unit-linked plans accept NRI proposers living in the UAE. A unit-linked plan (a ULIP) has a lock-in of five completed years, and savings and unit-linked plans can carry surrender charges.
What it is
Endowment and money-back plans pay a sum assured on death and a maturity amount if you survive, built from the premiums you pay. Unit-linked plans (ULIPs) invest your premium, after charges, in funds you pick, with life cover attached. Both are long-term rupee products with lock-ins and surrender charges.
Who it's for
People who want a disciplined, long-term rupee product with cover attached and who have already bought term cover for the protection part. Term cover plus a mutual fund SIP often does the same job for less.
What it needs from abroad
The same as term cover: proposal, income proof, a medical where required, and premium from NRE or NRO. Insurers that restrict residents of some countries for term cover restrict them here too.
Risks and catches
Charges in the early years are high and surrendering early returns far less than you paid. Maturity amounts in traditional plans aren't guaranteed unless the plan says so in writing; projections are not quoted on this site. ULIP fund values rise and fall with the market.
Tax, for an NRI
Maturity proceeds are tax-free in India only where the aggregate annual premium stays within the limits the Income-tax Act, 2025 sets: under ₹2.5 lakh for ULIPs and under ₹5 lakh for other plans issued on or after 1 April 2023. Your country of residence may tax the maturity.
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