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What are NRI Life Insurance Plans?


Non-resident Indians can also choose to buy a life insurance plan from an Indian insurer. An NRI term insurance plan, like a regular term plan provides a life cover and protects the financial future of your family.

Online NRI insurance policies can be easily bought across countries and continents. Some of them also do not require medical tests.

Who can buy an NRI life insurance plan?


Following individuals are eligible to buy an NRI insurance plan:

  • » Individuals with a Non-resident Indian status
  • » Individuals holding a valid Indian passport and temporarily residing abroad
  • » Individual of Indian Origin / Overseas citizen of India
  • » If the individual is a spouse of an Indian citizen

Benefits of Buying an Online Insurance Policy for NRIs


Long Term Protection

Long Term Protection

Online Term Insurance Plans provide longer protection for the policyholder and their family. One can choose a life cover up to the age of 80.

Long Term Protection

Financial Stability

A term insurance plan secures the family’s future by providing financial stability even when the main bread-winner is not around.



Tax Benefit u/s 80C

Add on Benefits

Many term insurance plans offer a host of add on benefits and riders such as accidental cover, critical illness cover, etc.

Peace of Mind

Peace of Mind

A term plan gives comprehensive protection to the family which helps in living peacefully without worrying about the future.



TAX BENEFIT

TAX BENEFIT U/S 80c

NRIs are eligible for saving tax on income earned in India. Premiums paid for a term insurance in India are deductible from taxable income under Section 80C. The payment (maturity amount) received under an insurance policy is also exempt subject to conditions under Section 10(10D) of the Income Tax Act, 1961.

Why Should an NRI buy a term life insurance plan?


  • IT PROVIDES FINANCIAL SECURITY:
    Every person who has financial responsibilities towards their family should consider the fact that they may not always be around. From household expenses to children’s education, everything can take a hit if the earning member passes away and one must take precautions to avoid a financial crisis in such a situation.
  • IT IS ECONOMICAL:
    A simple life insurance plan can be purchased for a fixed term at minimal premiums and if anything happens to the policyholder during the term of the plan, the nominee can either avail the sum assured as a lump sum amount, as monthly instalments or as a combination of both. It is also beneficial for an NRI to get a life insurance policy at a younger age so that in case he or she returns back to India in their later years, they are already protected by a life cover.
  • PROVIDES TAX BENEFIT:
    For NRIs, all premiums are exempt from tax under Section 80C. The sum assured (maturity amount) received is also exempt subject to conditions under Section 10(10D) of the Income Tax Act, 1961.
  • TIMELY PAYOUT:
    If there is death during the term of the policy the nominee can get their claims easily without any hassles provided the nominee is done with the requisite claim formalities. IRDAI’s Insurance Laws (Amendment) Act 2015 also directs life insurance companies to compulsorily pay all claims made three years after the date of commencement of a policy.
  • FLEXIBILITY:
    One can select how the policy proceeds are disbursed in case of death. Some term plans offer monthly pay outs where the sum assured amount can be given as a family income benefit to provide the regular cash flow to the dependents.
  • RIDERS AND BENEFITS:
    Even though choosing the best term insurance policy is a simple process and most term plans provide basic life cover, some also come with the option of getting add-ons. For example, one can opt to add critical illness cover, accidental death benefit, accidental total and permanent disability cover, etc. to a basic term policy to make the plan even more robust and risk-free. Insurance plans like Edelweiss Tokio Life Zindagi Plus provide the Better half benefit that ensures enhanced financial security even in the absence of the main breadwinner. Under this benefit, after the death of the policyholder, a life cover will start in his/her spouse’s name. This will be 50% of the life cover of the policyholder, up to an amount of ₹1cr. The spouse won’t have to pay any premium and the nominee will also get the sum assured.

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How to buy an NRI insurance plan?


For an NRI, geographical limitations could be a point of concern before buying an NRI 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.

NRIs can purchase a life insurance policy and pay the premium online through the following modes:

  • » Remittance in foreign currency
  • » NRO bank account
  • » NRE/ FCNR bank account