If you are an NRI looking for a term insurance plan in India, here is everything you need to know. An NRI can easily buy a term plan in India or even continue with an existing term plan. Most insurance companies offer NRI term insurance in India, which helps NRIs in protecting their families from any unforeseen event.
Before we proceed, let us first understand who is called a Non-Resident Indian. An NRI is a citizen who is not an Indian resident and has
There are term plans available which are specially designed for NRIs. Most of these plans can be purchased online through a simple and efficient process. Term insurance policies for NRI in India not only provide financial protection but also offers customisations and payout options.
However, there are certain eligibility criteria which you must fulfil to buy an NRI term plan, according to which,
Here, we will discuss everything about Term Life Insurance for NRI. Keep reading to find answers to questions like Can NRIs buy term plans? Or do you need to be present in India to buy a term plan?
Yes, it is possible for NRIs to buy term plans in India, though the process of buying and verifying is a little lengthy. As per the Foreign Exchange Management Act (FEMA), NRIs can buy a term plan irrespective of the country of residence, however, the premium will depend on the country of residence. Also, note that there are certain countries where an insurer may not have any services available. The premiums of a term policy for NRI in India, are paid through an NRO in Indian currency or an NRE bank account in foreign currency as per the currency specified in the insurance policy.
No, it is not compulsory for an NRI to be present in India while buying a term plan. It can be easily done online but it is better to purchase when present in India. An online purchase will require verification in detail conducted by the Indian embassy and the cost of all the medical examinations done outside India will be borne by the NRI. Therefore, it is much more convenient to buy an NRI term plan during your India visit.
Some of the key features of NRI term plans in India are:
An NRI term plan can be purchased for a tenure of 6 months to 25 years. The minimum entry age is 18 years, and the maximum age up to which an NRI can avail of a term plan is 60 or 65 years, depending on the plan.
The sum assured amount an NRI can opt for depends on the terms and conditions of the plan taken. A minimum ₹ 2 lakhs sum assured amount is available up to the amount you need to secure your family’s financial future. There is no maximum limit for the sum assured and you can opt for a high sum assured value of ₹ 5 crores or more.
Insurers give an option to pay in Indian or foreign currency to the NRIs. You can choose a currency and a payment mode at your convenience.
Following is a list of some of the best term insurance for NRI. From the plans listed below, NRIs can buy a term plan from their residing country.
| 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 |
Financial Security - NRI term plans are a good way to secure families of NRIs financially in difficult times. NRI customers can take advantage of the wide coverage choices available in India to fulfil their financial responsibilities towards their families.
Customised Coverage - A term plan in India gives many additional options to enhance your coverage on payment of additional premiums. This way you can customise your term plan to include critical illness cover or accidental death benefits as per your needs. You can have wide coverage in a single plan.
Payout Options - An NRI can choose how the nominees will receive the death benefit payout or how he wants to receive the maturity benefit. It can be a lump sum payment or monthly income or a combination of both.
To buy the right term insurance plan, here are some important factors that you should consider.
Every insurer has certain requirements to be fulfilled in order to issue an NRI term plan. These may include pre-policy medical check-ups, documents required, your country of residence (insurers have a list of countries where they do not provide any insurance services) and the currency in which the policy is issued, and premiums are to be paid.
Select an insurer that gives you the flexibility to choose your premium payment mode. An NRI can pay premiums either in Indian currency or in a foreign currency through an NRE account. Just ensure that premiums are always paid through the bank account of the insured.
An insurance company may or may not require you to undergo a medical examination depending on your age and medical history. Remember that if you purchase a term plan while present in India, most insurance companies bear the cost of medical examinations. However, if you buy a plan online, you will be required to bear the cost of medical examinations done outside India.
If you buy an NRI term plan in India, the tax laws in India are applicable along with the tax laws of your country of residence. Hence, consider the tax implications of NRI investment and maturity benefits, which are tax-free in India, and subject to IT rules. An NRI should check the prevailing tax laws in his residing country.
As per IRDAI regulation, an NRI should satisfy certain guidelines, which include an NRI declaration with the details of his tax status in the current country of residence, his tax status in India, the source of income used to pay the premium, account details through which premiums are paid, so that claim is paid through the same account, TDS details and declaration under DTAA.
You can easily purchase NRI term plans in India, provided you qualify the eligibility criteria and provide all the required documents. Here is a list of all the documents required for NRI term insurance plans in India.
There has been an increase in the demand for life cover in India from NRIs. Does this mean that Indian term insurers are better than foreign term insurers? Yes, in many ways such as:
So if you are an NRI or planning to relocate outside India, purchase an NRI term plan to secure your family and save money.
The policyholder can pay the pending premium within the grace period of 15 days otherwise the policy will lapse.
You can ask your insurer to keep your existing plan active and provide the additional details of your relocation.
Yes you can pay premium in foreign currency through your NRE account in the currency speacified in the policy or through a SWIFT transfer or even through an international credit card.
Not necessarily, you can purchase an NRI term plan online and provide all the documents also online.
