- Date : 27/03/2023
- Read: 4 mins
Telemedical check-ups, eKYC, and other processes have enabled NRIs to easily purchase term life insurance plans. Learn how to buy a term insurance policy.
Are you an NRI looking to buy life insurance term plans in India? Do you want to know its benefits for NRIs? Do you want financial stability for family members even when you are not there anymore? If you want to purchase a term plan, read on to learn more.
Life Insurance Term Plan for NRIs
A term insurance policy in India can provide you and your family with adequate life cover, even if you're an NRI.
If you're an NRI, you can purchase a life insurance term policy by paying in foreign currency through an NRE account from around the globe. You don't have to be physically present for verification.
As an NRI, you can verify your identity for purchases by using various advanced processes, such as:
- Telemedical check-ups
- eKYC
- Video verification facility and many others
Life Insurance Term Plan: Top 3 Benefits for NRIs
- Low Premium Rates
Term plans in the life insurance sector have become lucrative for NRIs because of the low premium rates. They are the lowest among developed and emerging economies around the world.
The term insurance premium in India is around 40–50% cheaper than in other parts of the world.
- Additional Coverage
You can enjoy additional coverage with your life insurance term policy. These optional add-ons are called riders. You may opt for this additional coverage along with your basic term insurance policy.
Some of the additional coverages you may opt for:
- The accidental and accelerated death benefits
- Critical illness benefits
- Disability rider
- Premium waiver
- Income riders and others
Note that you can get a rider by paying an additional cost.
- Tax Benefits
The premiums and rider costs you pay for your term life insurance policy will help you save on taxes. NRIs can claim tax benefits under Section 80C.
Under Section 10(10D), you can also enjoy tax benefits on:
- Insurance payout exemption
- Death benefits to your nominee
These additional covers usually cost a fraction of a different insurance plan. These are some of the major advantages of term plans for NRIs.
Also Read: Term Life Insurance - Pros & Cons and Why you Should Buy It
How Can NRIs Purchase Life Insurance Term Plans?
NRIs may purchase a life insurance term plan by following the steps given below:
Step #1: Fill up the Application and Submit Documents Online
You can download the term insurance proposal form or application from the website of your preferred insurer.
Fill up the application and submit it with other important documents, such as:
- Your passport’s attested copy
- Latest medical reports
- Proof of your income
- Age proof
Step #2: Telemedical Check-up
Your preferred term insurance company will schedule your telemedical check-up with one of their empanelled doctors. This check-up process will occur after you submit the filled-out form online and the required documents.
If your insurance company insists on a medical examination, you'll have to get it done at your own expense.
Step #3: Approval and Premium Details
The life cover amount differs from one insurer to another. Usually, the NRI term plan's premium varies from Rs. 1 to 2 crore.
Your premium amount depends on the following:
- Policy choice
- Premium payment frequency
- Current health condition of the applicant and many more
The macroeconomic conditions of the nation where you live can also affect your premium.
Step #4: Purchase a Term Insurance Plan
If you are an NRI who has bought a life insurance policy in India with foreign currency, you can make premium payments through your NRE account. Opt for an autopay facility in your NRO, NRE/FCNR bank account to make regular premium payments automatically.
Also Read: Life Insurance 101 - Everything You Want to Know About Life Insurance
Final Words
Before buying your life insurance term plan, check whether your preferred insurer provides services in the country where you are living. Also, check the tax implications because tax provisions may change for NRIs living in different countries.
NRI Dilemma in Buying Life Insurance Term Plan in India or Abroad?
Are you an NRI looking to buy life insurance term plans in India? Do you want to know its benefits for NRIs? Do you want financial stability for family members even when you are not there anymore? If you want to purchase a term plan, read on to learn more.
Life Insurance Term Plan for NRIs
A term insurance policy in India can provide you and your family with adequate life cover, even if you're an NRI.
If you're an NRI, you can purchase a life insurance term policy by paying in foreign currency through an NRE account from around the globe. You don't have to be physically present for verification.
As an NRI, you can verify your identity for purchases by using various advanced processes, such as:
- Telemedical check-ups
- eKYC
- Video verification facility and many others
Life Insurance Term Plan: Top 3 Benefits for NRIs
- Low Premium Rates
Term plans in the life insurance sector have become lucrative for NRIs because of the low premium rates. They are the lowest among developed and emerging economies around the world.
The term insurance premium in India is around 40–50% cheaper than in other parts of the world.
- Additional Coverage
You can enjoy additional coverage with your life insurance term policy. These optional add-ons are called riders. You may opt for this additional coverage along with your basic term insurance policy.
Some of the additional coverages you may opt for:
- The accidental and accelerated death benefits
- Critical illness benefits
- Disability rider
- Premium waiver
- Income riders and others
Note that you can get a rider by paying an additional cost.
- Tax Benefits
The premiums and rider costs you pay for your term life insurance policy will help you save on taxes. NRIs can claim tax benefits under Section 80C.
Under Section 10(10D), you can also enjoy tax benefits on:
- Insurance payout exemption
- Death benefits to your nominee
These additional covers usually cost a fraction of a different insurance plan. These are some of the major advantages of term plans for NRIs.
Also Read: Term Life Insurance - Pros & Cons and Why you Should Buy It
How Can NRIs Purchase Life Insurance Term Plans?
NRIs may purchase a life insurance term plan by following the steps given below:
Step #1: Fill up the Application and Submit Documents Online
You can download the term insurance proposal form or application from the website of your preferred insurer.
Fill up the application and submit it with other important documents, such as:
- Your passport’s attested copy
- Latest medical reports
- Proof of your income
- Age proof
Step #2: Telemedical Check-up
Your preferred term insurance company will schedule your telemedical check-up with one of their empanelled doctors. This check-up process will occur after you submit the filled-out form online and the required documents.
If your insurance company insists on a medical examination, you'll have to get it done at your own expense.
Step #3: Approval and Premium Details
The life cover amount differs from one insurer to another. Usually, the NRI term plan's premium varies from Rs. 1 to 2 crore.
Your premium amount depends on the following:
- Policy choice
- Premium payment frequency
- Current health condition of the applicant and many more
The macroeconomic conditions of the nation where you live can also affect your premium.
Step #4: Purchase a Term Insurance Plan
If you are an NRI who has bought a life insurance policy in India with foreign currency, you can make premium payments through your NRE account. Opt for an autopay facility in your NRO, NRE/FCNR bank account to make regular premium payments automatically.
Also Read: Life Insurance 101 - Everything You Want to Know About Life Insurance
Final Words
Before buying your life insurance term plan, check whether your preferred insurer provides services in the country where you are living. Also, check the tax implications because tax provisions may change for NRIs living in different countries.
