NRIs are citizens of India who are temporarily living in India, having a valid government-issued Indian passport. Also, citizens who reside abroad on a Visa for employment or business purposes are also known as NRIs. The investment plans for NRIs include Mutual Funds, Retirement Plans, NPS, ULIPs, Real Estate, equity, etc. Also, some plans offer tax-free investment options, which help increase wealth.
Life Insurance for NRI is a financial product which offers death benefits to the policyholder’s family members, irrespective of the place of residence, hence providing them with financial security. Depending on the source of payment, the premium amount can be paid either in foreign currency or in rupees. This plan secures NRIs & their family members during all financial hardships by providing a huge range of flexible life insurance plans, helping to achieve financial objectives.
Who Can Buy a Life Insurance Plan in India?
Provided is the list of individuals who can buy a life insurance plan in India:
- Non-Resident Indians (NRIs)
An Indian citizen with a valid passport who is residing in another country for work or educational purposes is known as an NRI in case they reside for more than 182 days or more in the previous financial year.
- Persons of Indian Origin (PIOs)
- Any person of full age & capacity,
- who is a citizen of another country but was a citizen of India at the time of, or at any time after the commencement of the Constitution, or
- who is a citizen of another country but was eligible to become a citizen of India at the time of the commencement of the Constitution, or
- who is a citizen of another country but belonged to a territory that became part of India after the 15th day of August 1947, or
- who is a child or a grandchild, or a great-grandchild of such a citizen, or
(b) A person who is a minor child of a person as mentioned in point (a) or
(c) A person who is a minor child whose any one or both of the parents are Indian citizens or
(d) Spouse of foreign origin of a citizen of India or spouse of foreign origin of an Overseas Citizen of India Cardholder registered under section 7A.
- Foreign Nationals
They are citizens of a foreign country residing in India, i.e. an individual who is not an Indian citizen.
Features of Life Insurance for NRIs
Provided are the features of Life Insurance for NRIs:
- High Coverage at Affordable Premium
NRIs can avail life insurance plans at a cheaper price in India in comparison to international insurance, which offers up to 50% lower premium rates for the same amount of coverage.
- Long Term Coverage
This plan provides protection, which makes it the most suitable for individuals who want a Long-Term Investment Plan with stable returns, fulfilling financial objectives.
- Coverage Against Terminal Illness
In case a policyholder is diagnosed with a terminal illness, the policyholder will be paid in advance a part or the entire amount of the sum assured.
- Accidental Death Benefits
In case of policyholder’s demise due to an accident, the nominees will get a additional payout, providing an additional payout.
- Critical Illness & Waiver of Premium
In case of disability, NRIs can upgrade their plan to get critical illness coverage & a premium waiver benefit at an additional cost.
- Limited Pay Option
NRIs are provided with an option to pay off the policy early & avail the long-term coverage without having any premiums to be paid.
- Flexibility & Convenience
It allows the premium amount to be paid in multiple modes, such as online sitting from anywhere in the world & in any mode, such as monthly, quarterly, semi-annually or annually.
Steps to Buy Life Insurance for NRIs
Provided are the steps to buy a life insurance plan for NRIs:
Step 1: On the India page, go to the tab “Term Insurance for NRI”.
Step 2: Enter the details required, such as the name of insured, birth date, contact details, residing country, gender, etc.
Step 3: Now, click the tab “View Plans”.
Step 4: Mention the smoking & tobacco habits, annual income, educational background, occupation type, etc.
Step 5: Compare all the plans available & choose the one that best suits your financial requirements.
Step 6: Proceed to make payment.
Benefits of Life Insurance for NRIs
Provided are the benefits of Life Insurance for NRIs:
- Adequate Financial Coverage
This plan provides financial protection to the policyholder’s family members in case of their sudden demise. The cash value or protection plans offer a death benefit payout, covering the financial requirements of the family, which can be used to maintain the livelihood of the family members in the absence of the sole breadwinner.
- Maturity Benefits
The survival or maturity benefits help secure a retirement life, achieve financial goals, & beat the effects of inflation.
- Pay Off Remaining Loans
This plan helps the family members in repaying the outstanding debts after the policyholder’s sudden demise, removing the burden from the shoulders of family members.
- Wealth Creation
This plan allows creation of wealth using the cash value factor to fulfil the needs during post-retirement tenure, beat inflation, or any other financial objective.
- Tax Benefits
The premium paid towards the life insurance plan is eligible for a tax deduction of up to INR 1.5 lakhs u/s 80C of the Income Tax Act, 1961. The death benefits received are exempt from tax u/s 10(10D) of the Income Tax Act, 1961.
Conclusion
Life insurance for NRIs is designed to offer financial protection to NRIs & their family members, irrespective of their residence location. Insurance companies offer a wide range of customised plans that will help meet your financial goals, along with worldwide coverage & seamless financial protection. This plan ensures long-term financial security, wealth creation advantages & mental peace in your absence.
