LIC Plans For NRI

Premiums can generally be paid through NRE, NRO, or FCNR accounts, making policy management convenient from abroad. If something unfortunate happens to you, the benefits of the LIC Policy for NRI can provide your family in India with much-needed financial support. Read more about LIC plans for NRI in detail:

Can NRIs Buy LIC Plans?

Yes, Non-Resident Indians (NRIs) can get LIC policies in India but there are specific procedures and restrictions. To apply, NRIs need to complete an application form, provide required documents like income proof and passport, and undergo a medical examination, which can be done in their country of residence. All claim settlements and policy payments are processed in Indian currency in India only.

What are LIC Plans for NRI?

LIC for NRI are the plans designed by LIC, especially for those individuals who live in a foreign country. Like Indian residents, NRIs are also eligible for these plans. The company offers more than 32 policies to the NRIs to cater to the different insurance needs of the policyholder. Below mentioned are some of the best LIC policies for NRIs that best fulfill their objectives. Take a look:

Why Should NRIs Buy LIC Plans?

Buying LIC plans for NRI offers several advantages such as:

Death Benefit

LIC Policies for NRI offer death benefits to the nominee in case the policyholder dies during the policy term of the policy. The death benefit is calculated as the higher of:
Sum Assured, or
7 times of the annualized premium in most policies.

Maturity Benefit

If the policyholder survives the policy term, the LIC NRI Policy pays a maturity benefit, subject to the policy terms. This amount can be used for retirement planning, children's education, wealth creation, or other long-term financial goals.

Loan against your policy

Many LIC for NRIs plans offer a loan facility after acquiring the required surrender value. This helps meet urgent financial needs without surrendering the policy. Currently, LIC offers policy loans at an interest rate of 9.5% per annum, charged half-yearly.

Convenient Premium Payment

With LIC Policy for NRI, premiums can generally be paid through NRE, NRO, or FCNR accounts, making it easy for NRIs to continue their policies while living abroad.

Tax Benefits

Eligible LIC NRI Plans may offer tax benefits under the applicable provisions of the Income Tax Act, 1961, while eligible NRI policyholders may also receive GST-related benefits as per prevailing government and LIC guidelines.

Points to Consider Before Buying LIC Plans for NRIs

Eligibility Check

NRIs are eligible to buy LIC plans in India only after certain eligibility criteria are met. One is eligible to buy LIC for NRI only if:

• They have possessed an Indian passport at some point in their life.

• Under the Citizenship Act, of 1965 either the parents or grandparents of the individual have been citizens of India.

• They have an Indian Spouse.

Do Your Research on Taxation Criteria

Taxation Slabs are different in every country. Thus, you need to gather all the information regarding the tax slabs prevailing in your country on investment, accumulation, and maturity and then buy a plan.

Medical Examinations

To buy LIC plans for NRIs, you have to undergo a medical examination. However one has the option to do the medical examinations in your residential foreign country and send the report to the insurer in India. In this case, the policyholder will have to bear the cost of all the examinations and the company will not be liable for the cost incurred.

What are the Purchase Methods and Limits of LIC Plans for NRI?

• Visiting India: If you buy a policy while physically present in India, the rules, pricing, and medical requirements are identical to those for resident Indian citizens.

• Mail Order Business: If purchasing from your current country of residence, formalities are completed abroad or via video medical examinations. Under this method, the maximum Sum Assured is typically capped at ₹3 Crore.

• Eligible Countries: Non-medical schemes under mail order are restricted based on your country of residence and employment type (e.g., government workers or established professionals)

Always review the policy brochure carefully before choosing LIC for NRIs to understand exclusions, claim conditions, and policy servicing guidelines.

How Can NRIs Buy LIC Plans Online?

NRIs can apply for an LIC Policy for NRI through LIC’s official website or NRI service channels. Follow these steps to start the application process:

Step 1: Go to the LIC India website and visit the NRI Centre section to check available plans, eligibility criteria, and application guidelines.

Step 2: Choose a suitable LIC NRI Plan based on your financial goals, coverage requirements, and premium budget.

Step 3: Complete the LIC proposal form with details such as personal information, nominee details, residential status, income details, and other required information.

Step 4: Upload or submit documents like passport, visa, overseas address proof, income proof, photographs, and other documents requested by LIC.

Step 5: If required, complete the medical examination as per LIC’s underwriting guidelines. NRIs can generally complete medical tests in India or their country of residence.

Step 6: Pay the premium through permitted payment modes such as NRE, NRO, or FCNR accounts.

Step 7: After successful verification and approval, LIC issues the policy document to the policyholder.

Documents Required to Buy LIC Plans for NRI

To purchase LIC NRI Plans, applicants need to submit certain documents for verification. The requirements may vary depending on the applicant’s country of residence, age, and selected policy.

Commonly required documents include:

• Valid Indian passport or OCI/PIO card (where applicable)

• Proof of overseas residence

• Visa or work permit documents

• Passport-size photographs

• Income proof such as salary slips, bank statements, or tax returns

• Medical examination reports (if required)

• NRI questionnaire and other documents requested by LIC

Is Buying LIC NRI Plans A Good Choice?

LIC for NRIs are the perfect blend of life security and savings. These plans ensure that while living abroad you don’t have to worry about the financial future of your family. The LIC NRI plans offer a host of benefits and act as a helping hand in helping you to achieve your financial goals. With convenient premium payment options and the reliability of LIC, LIC NRI Plans allow you to stay financially connected with your family and investments in India, even while living overseas.

Note: Check the best term insurance plan options in India.

Note: You should also check the benefits of term life insurance if you are planning to purchase the term insurance plan.

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