An NRI can purchase term insurance in India while visiting India or from a foreign country. Buying a term plan in India can secure your family’s financial future even if you stay abroad. Find out more details in this post.
A term insurance plan is one of the best ways for policyholders to secure their family’s future. Besides, term plans are relatively cheaper than traditional full-fledged life insurance policies. As a result, one can receive better insurance coverage at a low premium compared to a life insurance plan.
Can NRIs Purchase Term Insurance in India?
Yes, Non-Resident Indians (NRIs) can purchase a term life insurance policy in India. The term insurance premium amount for an NRI can be the same as for a resident Indian if the risks and the other underwriting conditions are the same. Moreover, reputed insurers don’t charge any additional premiums from NRIs.
Should NRIs Purchase Term Plans While Staying Abroad?
An NRI can purchase a term plan while visiting India. It is hassle-free as the buying process can be the same for an Indian citizen. However, there can be a situation when NRIs are unable to visit India for a long time but want to purchase term insurance for their family back in India.
These people can consider purchasing the requisite policy from their country of residence through mail order. However, detailed verification is required in this process.
- Copy of passport attested by the Indian Embassy officials
- Term insurance application
- Age proof
- Income proof
- Proof of health conditions of the policy buyer
Benefits For NRIs to Purchase Term Insurance
Life is full of uncertainties. An unfortunate event or incident can affect an NRI’s family similarly to any other family. Therefore, NRIs should consider taking a term life insurance policy to ensure their family members’ financial stability.
Customised Insurance Coverage
Term insurance plans offer a wide range of customisations to NRIs. For instance, an NRI between the age of 18-65 years can purchase term insurance. The policy period can be anywhere between 5- 30 years. Moreover, the sum assured can also vary from ₹2 Lakhs to ₹1 crore.
You can also opt for additional riders to enhance protection, like an add-on to cover a healthcare emergency.
Ease of Payment
NRIs can easily keep their term insurance policy active from their country of residence. They can make the premium payment by remittance through Non-Resident Ordinary (NRO) or Non-Resident External (NRE) bank accounts. However, the NRI must have a bank account in a specific bank mentioned in the policy.
Flexible Payout Option
The insurer allows the policyholder to choose the appropriate payout option. So, NRIs can decide whether their nominee should receive a lump sum payment or get monthly payouts for a pre-determined period after the policyholder is no more.
You went abroad not just to further your earning potential but also to provide a better life for your family and dependents back home. So, it’s crucial to save them from financial hardships even if something unexpected happens. Therefore, consider taking a term life insurance policy to secure your family’s future and have peace of mind while staying abroad.