For NRIs who are looking for investment options in India, a variety of life insurance products are available in the market to suit different needs. There are plans for your retirement income, child education, savings for the future and for specific goals. If you are an NRI, you should buy NRI policies in India because they are cost-effective, provide wide coverage and are easy to buy. Here is a detailed guide on Life Insurance Policy for NRI in India.
At this point, you might be thinking about the process of buying life insurance for NRI and may have a lot of questions in mind. Let us learn ma more about NRI life insurance in India.
It is not necessary for an NRI to be present in India to buy life insurance. However, every insurance company has its terms and conditions, which you should check before considering a plan. To find the best NRI life insurance plans, compare all available plans online from the country you live in. Most insurers allow you to buy a life insurance plan online from wherever you are. The only condition is that if a pre-policy medical check-up is required, the cost of the medical tests done outside India must be borne by the policyholder and is an additional cost.
Being present at the time of buying a life insurance plan is advantageous in many ways. When you are present in India, you are treated as an Indian resident, you don’t have to bear the costs of medical tests, and the verification process is simpler comparatively. With the increasing demand for life insurance from NRIs, many insurance companies have started setting up offices in foreign countries for ease of documentation, verification and medical examination processes.
Yes, life insurance companies keep a watch on the government and political scene of a country. A country where the government is not stable, or there are political disturbances may be considered high risk due to internal issues. If your country of residence is a high-risk country, your life insurance application may not be accepted or you will be charged a higher premium. A country with proper law and order, and stable government is considered low-risk, applications from NRIs from such countries are easily accepted.
How you pay the premium amount for NRI life insurance plans, depends on the currency in which your life insurance policy is issued. In case it is issued in foreign currency, the premiums are paid from an NRE/FCNR bank account. If it is issued in Indian currency, you can pay the premium through an NRO bank account. You can choose either of the two ways depending on your convenience.
To help you choose the best NRI life insurance plan in India, here is a list of NRI insurance plans from different insurers in India.
| Term Plan | Entry Age | Maturity Age | Sum Assured |
|---|---|---|---|
| HDFC Click2Protect Plus | 18 to 65 years | Whole life | ₹ 50 lakhs to ₹ 3 Crores |
| PNB MetLife MeraTerm Plan | 18 to 60 years | 99 years | ₹ 2 lakhs to ₹ 1 crore |
| SBI Life eShield | 18 to 65 years | 70 years | ₹ 20 lakhs to No limit |
| Bajaj Allianz ISecure Plan | 18 to 65 years | 85 years | ₹ 25 lakhs to ₹ 50 lakhs |
Like premiums, benefits from the life insurance plan are also paid in the currency specified in the policy. It can be either in Indian currency or in the currency of the NRI’s residential country. An important point to note here is that death or maturity benefits are repatriable if the premiums are paid in foreign currency, but in case premiums are paid in Indian currency, the benefits are payable in India only.
The life insurance plan for NRI pays death benefit irrespective of the location of the insured. However, remember that for death benefit, if the insured dies in foreign country a death certificate attested by the Indian embassy is required to claim the benefit. No such requirement is there if the insured dies in India. To file a death claim, the nominee will have to submit all the required documents.
India has now become the world’s fifth largest economy and offers many NRI investment plans in India. Buying life insurance for NRI in India offers many features and benefits
Life insurance act as an income replacement in case the insured dies during the policy tenure. It ensures the family’s financial security and takes care of all the financial needs in the absence of the earning member. So it is advisable to be prepared for any misfortune.
The biggest benefit of an NRI life insurance plan is that it provides wide coverage at a very affordable cost. To find the best plan you can compare the NRI plans in India with the life insurance plans in your residential country.
All the insurance companies in India give you options to customize or enhance your coverage. You can get many benefits from a single policy by adding riders to it, and that too at a very nominal cost.
The death and maturity benefits from the life insurance plans provide tax benefits as the Income Tax Act in India. The tax rules prevailing in your residential country may be different, so it is advisable to check the taxation laws in your current country to avail the maximum benefit.
NRIs can easily purchase a life insurance plan online from India and get a video medical check-up done from their country of residence. It helps in getting large coverage using the tele medical checkups.
NRIs are required to provide the following documents to buy a life insurance policy in India
Whether you are an NRI or a resident Indian, life insurance is the best way to cover life risk and protect your family. If you are an NRI and want to purchase a life insurance policy in India, check NRI policies from Coverfox. Our team and insurance experts will solve all your queries and help you find the best and most suitable NRI life insurance plan.
Yes, NRIs can avail tax deduction up to ₹ 1.5 lakh p.a. for the premium paid towards the NRI life insurance plan.
The maximum term an NRI can get coverage for is 25 years.
If the NRI is outside India, the medical checkup are done in his residential country and the cost of checkups is borne by the NRI himself. Now many insurers are also providing the facility of video medical checkups.
For NRIs, life insurance policies can be issued in foreign currency.
