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Life offers no guarantees. We never know what lurks around the next corner, and we must prepare ourselves, our families and our finances for every eventuality. A term insurance plan provides life coverage, offering your family financial stability and security when they need it the most. Non-Resident Indians (NRIs) who still have family in India may want to protect them with a term plan. Let’s find out how they can purchase the best term plan for their requirements.
Yes, NRIs have the option to purchase a term plan in India even when they maintain residency abroad. They can opt to get a policy while they’re in India or purchase their plan while they’re abroad.
Purchasing a Term Plan in India
Buying a term plan in India is quick, easy and convenient. The individual must find a policy and insurance company they like and request to purchase a plan. While filling out the application, they must mention that they hold residency abroad and disclose the country where they stay. Once the paperwork is complete and the NRI makes the payment, they receive the term plan and its coverage. Some insurers may not offer policies for residents of certain countries, so NRIs must do their research before selecting a company. Insurance companies may charge higher premiums for NRIs living in politically unstable countries.
Purchasing a Term Plan from the Country of Residence
NRIs can also purchase a term plan from their country of residence via Mail Order Business. NRIs must get verified by a notary and officials at the Indian Embassy in their country of residence to complete the purchase. Indian students who are studying abroad can also purchase a term plan. They can request their college supervisor or dean to help with the verification process.
Sum Assured
NRIs can choose a sum assured between INR 2 lakhs and INR 1 crore, depending on their needs.
Premium Amount
The premium depends on the individual’s health, age, medical history, lifestyle, and sum assured.
Tenure
Term plans for NRIs come with variable terms. Individuals can purchase a policy for just five years or up to 30 years.
Purchase Age
NRIs between the ages of 18 and 65 can purchase a term plan.
Payments
Insurance companies accept internet banking payments, foreign remittances and debits from an NRO, NRE or FCNR account. NRIs can choose their premium payment schedule. They can opt to make monthly, quarterly, biannual or annual payments.
When purchasing a term plan, NRIs must provide:
Income Proof Documents
The acceptable income proof documents for NRIs include:
Term plans provide NRIs with multiple benefits, including:
Financial Stability
Term policies provide family members with financial stability when they need it most.
Customised Cover
NRIs can pick from a wide range of sum assured options and select riders to enhance their coverage based on their needs.
Payout Options
NRIs can choose how their nominee will receive the sum assured payout. They can opt for a lump-sum payout or monthly or annual instalments based on their family’s financial situation.
A term insurance policy provides NRIs with life coverage, offering financial stability and security to their loved ones. NRIs should take the time to find the best term plan based on their unique needs. A term plan helps people deal with life’s unpredictability without having to worry about the impact it could have on their family’s finances.
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