No matter which country you currently reside in, term insurance plans for NRIs are essential for securing your family’s financial future. For those who are little unversed in the same, Term insurance for NRIs is a plan designed for NRIs (Non-Resident Indians), OCI cardholders (Overseas Citizenship of India,), PIOs (Persons of Indian Origin), who can secure the financial future of their family back home incase of their unfortunate demise. What these plans essentially do is, provide death benefits to the family if something happens to the policyholder, regardless of where they live.
Term insurance for NRI plans works the same way as other term insurance plans in India. The policyholder has to pay premiums on time as decided by the policy document to get life coverage. The nominee assigned by you receives the death benefit in case of the unfortunate demise of the policyholder during the policy term. Before buying the policy cover, one needs to take into account many factors to ensure the family is able to hold off their standard of living in their absence. If you are new to term insurance for the NRI topic, this article is for you.
Can NRIs Buy Term Plans in India?
Yes, NRIs can buy term life insurance plans in India very easily. Geographical boundaries are no longer a barrier for NRI to buy term insurance plans in India. They can now easily buy India’s best term insurance plan by scheduling a video or telemedical check-up from their residential country.
Exactly how Term Insurance Plans For NRI Work in India?
Term insurance for NRI works similarly to regular term plans. When the policyholder pays a premium for their NRI term insurance plan on time, the sum assured is given to the nominee in case the policyholder, unfortunately, passes away during the policy term. If the policyholder wants some of the premiums paid back, NRI has the option to choose the term insurance return of premium (TROP) option, where the total premium amount paid is returned to the policyholder at the time of maturity.
Why does it make complete sense to buy term insurance plans for NRI?
Can be bought online or offline: NRI term insurance plans can be purchased online or offline. With tele-medical checkups, the online purchasing process of term life insurance plans from India has become hassle-free for NRIs living anywhere in the world.
Staying Financially Protected: Term life insurance plans for NRIs are very important for financially protecting their family’s future. It provides an affordable way to ensure your family has the reserve to cover future expenses
Allows you to choose How to disburse the death benefit: Various payout options for NRIs in India are available for term plans, such as lump sum, regular income, or a combination of lump sum and regular income. Depending on your family’s current and projected lifestyle needs and preferences, you can choose any of these options while buying term insurance for NRI plans.
Flexible-Premium Payment Modes: You can get the maximum coverage from your term insurance for NRI plans at a low premium rate. The insurance company provides different payment options: monthly, bi-yearly, quarterly, or annually. The earlier you buy a term insurance plan, the lower the premium you have to pay in the long run.
Helps you get Long-Term Coverage: Term life Insurance for NRIs offers pure risk cover for a long policy tenure. Some plans provide coverage for as long as 99/100 years. These protection plans offer comprehensive and flexible coverage with multiple options to financially protect the policyholder and his/her family members.
Comes with limited Pay Benefits: NRIs can also avail of limited pay benefits in term insurance plans. In this, recurring payments are made for a particular time. However, the life cover remains the same throughout the policy tenure. Thus, you can pay your premiums for a short period of time and save money accordingly.
Special Exit Option: In India, NRIs can buy term plans with a specific exit option added to the plan. With this option, the NRI can terminate the plan at a certain point and collect all the premiums paid to keep the policy active at the end of the term. This option is especially beneficial for those individuals who are uncertain about their retirement age or when their financial dependents will be independent.
GST Waiver: Term insurance for NRIs from an Indian Insurance company offers a GST waiver of 18% on the premium amount paid through a Non-residential external (NRE) bank account that supports freely convertible currency.
Extra Discount on Annual Payment Mode: An NRI customer can receive an additional 5% reduction on the premium amount paid in an annual mode for their protection plans. So, now NRI consumers can get a total discount of 23% (18% + 5%) on the entire premium paid.
Low Premium Rates: Term insurance for NRI plans from India is up to 40% to 50% more economical than international term life insurance plans from other countries. With term insurance for NRI in India, you can acquire maximum life cover at an inexpensive rate. The difference in term life insurance premiums varies from one country to another.
Gets the Tele/Video Medical Check-ups Video or Tele-medical Checkup: Policyholders can now simply purchase an NRI term insurance plan in India by booking a video/telemedical checkup from their home country.
Purchasing the best term insurance plan in India for NRIs is an essential financial product that can provide financial security and peace of mind for NRIs and their family in the long run. It can protect your loved ones in your absence by offering death benefits as a future savings plan. Purchasing NRI term life insurance in India has become easier and more convenient thanks to tele-medical tests. Before purchasing NRI term insurance policies in India, it is recommended that you read all of the policy’s terms and conditions.