According to Govt. of India regulations NRI (Non Resident Indian) or PIO (Person of Indian Origin) can take Lic Policy through authorized agents or financial advisors appointed by Lic of India, approved by IRDA.
All person of Indian origin are allowed to take Life Insurance policies irrespective of their current status.
NRI Insurance Policy
NRI can easily buy a new Lic policy without leaving their current country of residence. All paperwork needs to be completed by courier services. However you need to select an agent who will be a point of contact between you and the parent company. You need to undergo medical test based on the plan and term of the specific policy. All charges related to medical test needs to be borne by the proposer. In case proposer is in India than no medical charges are to be paid. All charges will be borne by LIC. Regular premium can be paid by the NRI proposer through Direct Remittances, NRO, and NRE bank accounts.