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Life Insurance for NRI in India
It is quite every person’s dream to go abroad for further studies or pursue a career. While building a career abroad, it’s also important for NRIs to protect their family members when they are away. If something happens to them, their family might face a financial crisis. With the right life insurance plan, you can support your family financially during tough times.
Thus, it is always advisable for everyone to invest in life insurance, irrespective of whether they reside in or outside India. NRI life insurance is a tailor-made product designed to cater to the needs of Non-Resident Indians (NRIs). It is not just a financial product that helps you protect your family at reasonable premiums but also allows you to build a corpus in the long run.
Can NRIs Buy Term Insurance in India
No doubt, NRIs can buy life insurance policies in India. But you must first check whether your insurer offers services in your current residence country.
Here are a few factors you must go through before buying NRI Life Insurance:
- The minimum education qualification required is graduation to buy life insurance for NRI.
- To buy NRI life insurance, you need an income of at least 10 lakh INR.
- It would be best if you are fully vaccinated against COVID-19.
- Medical underwriting will be held via tele or video medical.
- Receive an additional 5% discount on your first-year premiums.
- Get an 18% GST waiver based on the prevailing tax laws.
- You’ve to bear the medical examination expenses.
Who Can Buy Life Insurance Policies in India
Non-Resident Indians (NRIs)
People who reside outside of India for work purposes and education. Some who reside in another country for 182 days or more in a financial year will be classified as NRIs.Persons of Indian Origin (PIOs)
People whose ancestors were born and raised in India but no longer hold citizenship of India.Foreign Nationals
An Individual of any country other than India who is not of Indian origin.
Why Should You Buy Life Insurance for NRIs in India
Let’s understand why it is beneficial for NRIs to buy life insurance in India instead of getting insurance from abroad in detail:
GST Waiver
Under Life Insurance for NRIs, you can avail of an 18% GST waiver based on the prevailing tax laws.Additional Discount
Along with the GST waiver of 18%, you’ll also get an additional 5% discount on your first-year premiums.Easy Claim Process
With NRI life insurance, your family doesn’t have to worry about visiting your current country of residence to settle their claims.Claim Settlement Ratio
NRIs can go through the annual CSR report of IRDAI to shortlist an insurer with an impressive claim settlement ratio.Tele/Video Medical
NRI customers can buy a life insurance plan online, and all the medical underwriting will be held via tele or video medical. It saves you from the hassle of coming back to India just to get your medicals cleared.Several Insurance Providers
IRDAI has enrolled various life insurance companies in India. So NRIs can easily compare plans each insurer offers and choose the one that best fits their needs.
Benefits of NRI Life Insurance
High Life Cover
Life insurance NRI in India offers high life cover at lower premiums than international life plans. On the policyholder’s sudden demise, the death benefit amount shall be payable to the nominee.
Investment Opportunities
NRI life insurance offers unique investment opportunities with a combination of protection and security, making it a reliable option for NRIs. It helps you build wealth with guaranteed returns, along with a life cover to protect your family from your demise.
Tax Benefits
Non-resident individuals can avail of tax benefits under Section 80C or 10(10D) along with the GST waiver of 18%. It increases the overall savings and saves you a lot on the premiums paid.
Survival/Maturity Benefits
With NRI life insurance plans’ survival or maturity benefits, you can safely plan for your post-retirement life and prepare against potential inflation.
What are the Types of NRI Life Insurance in India
Each NRI insurance policy is designed to meet various objectives and future life goals. The types of NRI life insurance available in India are as follows:
NRI Term Insurance
Term insurance for NRIs works the same as other term plans in India. It is a pure protection plan that offers policyholder life coverage for a specific term. Upon the policyholder’s sudden demise during the policy term, the death benefit amount shall be payable to the nominee.
NRI ULIPs Plan
In this plan, you’ll get the combined benefits of wealth creation and protection with a life cover. The plan helps you stay invested and generate wealth through a choice of unit-linked funds. The life cover amount is payable upon the policyholder’s death. On the other hand, the maturity benefit is payable based on the fund’s performance in terms of the survival of the policy tenure.
NRI Retirement Plans
NRIs can also invest in a retirement plan to secure their post-retirement. In this plan, you’ll get monthly income after retirement to ensure you live fully and manage your expenses.
Child Insurance Plans for NRI
Investing in a child insurance plan for NRI can secure your child’s education or financial future in case something happens to you. The returns from the child plan help you stay prepared for your child’s education expenses, fund their careers, get married, or pay for other financial expenses.
Eligibility Criteria for NRI Life Insurance
To purchase NRI life insurance in India, you have to meet the desired eligibility criteria and the documentation.
| Age Criteria | Generally, the minimum age to buy an NRI life insurance plan is 18 years, and the maximum can be up to 65 years. | |
| Documentation Required | Age Proof | Birth certificate, Passport |
| Identity Proof and Address | Passport copy, National Identity card, Resident card | |
| Income Proof | Bank statements, salary slips, Tax documents | |
| NRI Questionnaire | Details regarding overseas stay/travel to assess eligibility. | |
What PolicyX has to offer for NRIs?
- Free dedicated claims support & guidance.
- No misselling - know your advisor.
- Online free comparison.
- Cheaper than offline - get online discounts
Conclusion
Surely, non-resident Indians (NRIs) can buy life insurance plans for expats from India-based insurers. The NRI life insurance policy helps you build a corpus with guaranteed returns and a life cover to protect your family from your sudden demise. You can easily compare life insurance plans for NRIs online based on their premiums, CSR, policy term, sum assured, and benefits offered and select the one that best fits your requirements.
To clear any further doubts about NRI life insurance, you can speak with our insurance experts and get personal assistance free of cost. Just give us a call today at 1800-4200-269 or visit PolicyX’s official website.
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Written By: Sahil Singh Kathait
A boy-in-squares bagging escapades of switching streets in groove & sensing musical airy-notes from 6 1". Under wayed nyctophile sketching the walls of life from the panorama of anime.
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