Why Should An NRI Buy A Term Life Insurance Or Savings Plan?

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:

• 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 to India in their later years, they are already protected by a life cover.
• Provides Tax Benefit³: For NRIs, all premiums are tax deductable 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. With savings and investment plans, one gets to choose the premium amount,  as per their requirements. There is also an option of selecting funds as per your choice. One can opt for a plan based on their financial goals and risk appetite.
• Liquidity: No matter what your premium paying term or policy term is, after the lock-in period of 5 years, you can fully or partially withdraw funds from your account when you need urgent funds.
• Systematic Savings: With savings insurance plans, one gets the benefit of putting aside a chunk of their income and save it for future use.
• Wealth Accumulation: Saving Insurance Plans help in putting your savings to good use and accumulating them over time for future use.