What insurance should an NRI actually skip?
❌ Insurance you can probably skip
ULIPs (Unit Linked Insurance Plans) — terrible product for NRIs. High commission, opaque fees, returns lag pure mutual funds by 2-3% annually. Buy term life + invest the difference in mutual funds.
Personal accident / disability cover (standalone) — usually a rider on existing health insurance is cheaper and adequate.
Vehicle insurance for cars you don't drive in India — if your car sits at parents' or in your closed parking, the bare-minimum third-party cover (₹2-3K/year) is enough; don't pay for comprehensive on a non-driven vehicle.
Long-term endowment plans / "money-back" insurance — these mix insurance + investment and do neither well. Same mutual-fund-vs-ULIP logic applies.
₹3-8K/year for ₹50L-1Cr structure + ₹5L contents. Cheap relative to the asset, but most NRIs skip it — fire, flood, theft on a vacant property is the actual risk. Vacant + rented properties need explicit cover beyond standard.
Most comprehensive home cover for NRI-owned property. Structure + contents + tenant default cover + vacant property cover all bundled. Online claim filing — useful when you can't physically be there.
Strong on natural disaster cover (flood, earthquake, cyclone) — particularly important for coastal cities (Mumbai, Chennai, Kochi, Goa). Quick claim settlement for vacant properties. Mobile app for ongoing policy management.