Can I buy term insurance if I don't have a job yet?

Yes, as a student, you can get term cover based on your education loan amount or your parents' income as a proxy.

Will my Indian term plan cover me if I die in the US?

Yes, most Indian term plans offer worldwide coverage. Just ensure you disclose your travel plans to the insurer during the application.

Is GST still applicable on term insurance premiums in India?

No, the government has recently removed the 18% GST on individual term insurance premiums, making them much cheaper for you.

What happens to my policy once I become an NRI?

Your policy remains valid. You just need to notify the insurer about your change in residential status and update your records.

Do I need to come back to India for medical tests?

It is best to finish medical tests in India before leaving. Doing them abroad is expensive and involves complex coordination with insurers.

Can my parents pay the premium and get tax benefits?

Yes, parents can pay the premium for their children and claim tax deductions under Section 80C of the Income Tax Act.

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Why buying Term Insurance in India is a must before your Masters abroad

Don't let your education loan become a burden for your parents. Lock in lower premiums and global coverage before you fly out.

5 min read

OneAssure Team

April 13, 2026

Need advice tailored to you?

Looking for the right plan? You don't have to guess. Let us compare the fine print for you and give you an unbiased recommendation.

Need advice tailored to you?

Looking for the right plan? You don't have to guess. Let us compare the fine print for you and give you an unbiased recommendation.

Your Masters degree is an investment, but your loan is a liability

Your flight is booked. The visa is stamped. You have probably spent months obsessing over university rankings and part-time job rates in cities like Boston or Berlin. But there is a ₹60 lakh elephant in the room. Your education loan. Most Indian students head abroad with a massive debt often co-signed by their parents. If something happens to you, that debt does not just vanish. It falls straight onto your parents' retirement savings. This is why getting a term plan before you fly out is a smart move.Think about it. Your parents are likely in their 50s. They are looking at retirement. A ₹50 lakh or ₹75 lakh loan is a heavy weight. A term insurance policy acts as a safety net. It ensures that if you are not around, the bank gets its money from the insurer, not your parents' bank account. It is about protecting the people who backed your dreams.

Why buying in India is a massive cost-saver

Wait until you land in the US or UK to buy insurance, and you will feel the pinch. Foreign insurance policies are priced in Dollars or Pounds. The premiums are significantly higher. Buying your term plan in India at age 23 or 24 is incredibly cheap. You can lock in a ₹1 crore cover for less than the cost of a couple of pizzas a month. In fact, if you buy now, you benefit from the recent removal of 18% GST on term insurance premiums. This makes it even more affordable for young students.Locking in a high sum assured now is better than waiting until you graduate. At 24, you are at your healthiest. Your premium stays the same for the next 30 or 40 years. If you wait until you are 30 and working abroad, your age and a potentially more stressful lifestyle will push those rates up. Plus, you won't have to deal with currency exchange fluctuations every year if you pay in Indian Rupees from your Indian bank account.

The Global myth: Does an Indian policy work in New York?

A common worry is whether an Indian policy is valid once you cross the border. The answer is a loud yes. Most Indian term insurance policies provide global coverage. Whether you are in London, Toronto, or Sydney, you stay protected across different time zones. Death is death, regardless of the geography. As long as you have declared your travel plans and the country is not a restricted war zone, the claim will be valid.Your existing policy stays active even after your residential status changes to a Non-Resident Indian (NRI). You just need to inform the insurer once you settle down. This transition is seamless. You can consult experts at OneAssure to find which insurers have the smoothest process for students moving abroad. Choosing an Indian insurer also makes the claim process easier for your family. If the worst happens, your parents can deal with a local office in their own language rather than chasing a foreign company across borders.

Bridging the No Income Gap

You might wonder how a student with no salary can get a term plan. Normally, insurers ask for salary slips. However, for students going for higher studies, many insurers offer cover based on the education loan amount. If you have a ₹40 lakh loan, you can get a policy for that exact amount even without a personal income. Some insurers even look at your future earning potential based on your degree and university ranking.To make the policy even stronger, consider adding an accidental death rider. International students commute a lot. Whether it is frequent flights or late-night bus rides from the campus, the risks are real. This rider provides an extra payout over the base sum assured in case of an accident. Also, look for a waiver of premium rider. If a total disability prevents you from finishing your studies or working, the insurer pays your future premiums for you, keeping the cover alive.

The Logistics: Medicals and INR payments

Do not leave the medical tests for later. Completing your medical checkups while you are still in India is a huge relief. International medical tests are expensive and a logistical nightmare. In India, the insurer usually handles the cost and the appointment. It takes a few hours, and you are done. If you try to do this from the US, you might have to pay out of pocket and find a specific lab that the Indian insurer recognizes.Paying your premiums in Indian Rupees is also a hidden advantage. You avoid the headache of exchange rate volatility. If the Rupee weakens against the Dollar, your premium in India stays the same in INR. Your parents can also claim tax deductions under Section 80C by paying the premiums for you. It is a small but helpful way for them to save some tax while securing your future.

The Gotchas you should not ignore

Transparency is your best friend. When applying, be very clear about which country you are going to. If you say you are staying in India but move to the US a week later without informing them, it could lead to claim rejection. Always update your NRI status once you get your residency permit or work visa. It is a simple email or a form, but it saves massive heartaches later.Also, check the list of restricted countries. Most popular study destinations like the US, Canada, UK, Australia, and most of Europe are perfectly fine. But if your Masters takes you to a country with political instability, the insurer might have specific clauses. Read the fine print about 'war-like situations' or 'civil unrest'. It is better to know these details now than to find out during a crisis. Get your protection sorted before you start packing your bags. It is the one thing you shouldn't leave for the last minute.