IN UNIT LINKED INSURANCE POLICIES, INVESTMENT RISK IN THE INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER

Take a step ahead to secure your life

SHARE THIS PAGE

Insurance Plans for NRIs

 

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.

 

Who Can Buy Insurance Plans in India?

 

Following are the guidelines to be met for an NRI to buy a non-term plan from Edelweiss Tokio Life

 

  • Maximum sum assured is ₹ 5Cr.
  • Currently, non-term plans are only allowed for NRIs residing in Dubai
  • Selection of riders is not allowed
  • Medicals are permissible at selected centres
  • Income proof is mandatory above ₹25 lakhs of life cover

Benefits Of Buying An Online Term Insurance Or Saving Plans For NRIs

Long Term Protection
Long Term Protection
Insurance plans provide longer protection for the policyholder and their family. One can choose a life cover up to the age of 100 years.
Financial Stability
Financial Stability
Term Insurance plans help NRIs in securing the family’s future by providing financial stability even when the main breadwinner is not around.
Peace of Mind
Peace of Mind
Term plans give comprehensive protection to the family which helps in living peacefully without worrying about the future.
Tax Benefit
Tax Benefit³
NRIs are eligible for saving tax³ 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.
Long Term Protection
Long Term Protection
Insurance plans provide longer protection for the policyholder and their family. One can choose a life cover up to the age of 100 years.
Financial Stability
Financial Stability
Term Insurance plans help NRIs in securing the family’s future by providing financial stability even when the main breadwinner is not around.
Peace of Mind
Peace of Mind
Term plans give comprehensive protection to the family which helps in living peacefully without worrying about the future.
Tax Benefit
Tax Benefit³
NRIs are eligible for saving tax³ 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 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.

 

More Products You’d Love to Explore

Documents Required to Buy an 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.

 

Mandatory Documents Required:

  • Age Proof
  • ID Proof
  • Address Proof
  • Recent Photo
  • Income Proof
  • NRI Questionnaire
  • FATCA Declaration
  • Entry and Exit Details on Passport
  • Covid-19 Questionnaire
  • ENACH/Physical NACH
  • Declaration of Reverse Solicitation if applying from abroad

 

 

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

Reasons Why You’re Bound to Love Us Back

We’ve got experience in helping people make their Zindagi unlimited

We’ve got expertise in helping you grow your wealth

We constantly innovate our offerings to get better results for you.

Fire Away Queries

Like teachers say, there are no silly questions

Which life insurance plans in India can be opted by an NRI?

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.

Was this helpful?

Can NRI buy term insurance 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.

Was this helpful?

What is the sum assured for NRI term plans?

The assured sum for NRI term plans can vary based on the applicant’s requirements.

Was this helpful?

How can one opt for term insurance for NRI?

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.

Was this helpful?

Are there any tax benefits¹ with NRI life insurance plans in India?

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).

Was this helpful?

What are the different premium payment modes available that you can use for NRI life insurance?

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.

Was this helpful?

What is term insurance for NRI?

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.

Was this helpful?

We are always there for you!

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