IN UNIT LINKED INSURANCE POLICIES, INVESTMENT RISK IN THE INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER
An NRI can buy a life insurance policy to safeguard his/her family's future financial interests in absence of the policyholder. NRIs can buy term insurance plans and savings and investment plans in India.
The insurance premiums applicable for these plans are variable, depending upon terms of the policy, the frequency of premium payments, age, health conditions etc. The term durations are also variable depending upon the products offered by different insurers in India.
Insurance policies for NRI can be easily bought online across countries and continents.
Following are the guidelines to be met for an NRI to buy a non-term plan from Edelweiss Tokio Life
If an NRI is the main earning member of the family, the feeling of being secured even in an adversity, can make one confident and prepared for the future. This is one of the main reasons why an NRI should buy a life insurance plan. It is also very convenient for an NRI to buy an online life insurance policy.
Here are 6 other equally important reasons why an NRI should buy an online term insurance plan:
For an NRI, geographical limitations could be a point of concern before buying a life insurance plan. However, the process can be quite easy and convenient.
It is not necessary for the NRI to be present within the geographical location of India while purchasing a Life Insurance Policy. However, if the policy involves medical examination, it would have to be done at the policyholder’s expense if he were out of India at the time of the policy inception.
The premiums are the same for Resident and Non-Resident Indians if the risk involved is the same. The premium would increase only if the associated risk increases and not otherwise.
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An NRI can buy a term insurance plan and save money in most of the saving and investment plans such as ULIPs and endowment plan provided under life insurance policies in India.
Yes, NRIs can buy life insurance policies in India such as term insurance. Term life insurance plans can be bought by any person of Indian origin, regardless of whether they are NRIs or residential citizens. Foreign Exchange Management Act (FEMA) allows NRIs to buy any plan that meets their requirements of protecting themselves and their family whether he is currently residing in India or not.
The assured sum for NRI term plans can vary based on the applicant’s requirements.
If you are a non-resident Indian (NRI), you can purchase term insurance plans designed specifically to meet your needs to secure the future of your loved ones and protect them in your absence. Like the process for Indian citizens, NRIs need to submit a copy of their age proof, address proof, identity proof, passport, medical history, income proof, etc. for KYC purposes.
All premiums under life insurance for NRIs are tax deductible under Section 80C. If NRI provides the valid Form 10F and Tax Residency Certificate (TRC) then there will be no deduction of Tax at Source (TDS).
NRIs can either pay from their regular bank’s debit or credit card in the currency of the country they are currently residing in. They can also pay from their Non-Resident Ordinary (NRO) and Non-Resident External (NRE) accounts.
Term insurance for NRI is a type of life insurance policies in India that provides NRIs life coverage for a certain period or a specified "term" of years and protects the financial future of the policyholder’s family. NRI term plan can be customized basis the specific requirements, life cover and financial needs.
0 - Provided the premium paying term is more than or equal to 10 years.
3 - As per provisions of Income Tax Act, 1961. Tax benefits are subject to changes in tax laws.
ARN No: WP/1461/Feb/2021