Can NRI buy Life Insurance in India?

Can NRIs Buy Life Insurance in India? 

Yes, NRIs who live in a foreign country are allowed to buy life insurance plan in India. All individuals of Indian origin, irrespective of their citizenship status in India, can buy whole life insurance, protection plans, or cash value life insurance plans in India to secure themselves and their loved ones.

Best Life Insurance Policy in India For NRI 2024

These life insurance companies in India offer the following term life insurance plans.

Note: You can use the Term Insurance For NRI Premium Calculator to estimate the premium amount of your selected life cover.

Why Do NRI Need Life Insurance Plans?

Indian expats living abroad should buy NRI life insurance because of the following reasons:

• Easy Process: The process of buying an NRI life insurance plan in India is way easier than that buying international life insurance. The CSR values released by IRDAI also help you make a decision about the insurance company from which you should purchase your life insurance policy.

• Higher Life Cover: The NRI life insurance plans offer a life cover that would be payable to your family in case of your unexpected death. The life insurance plans in India are designed specifically for Indian expats with their needs in mind. Thus you can choose a cash value life insurance or a universal life insurance with a sum assured high enough to cover your family’s future expenses and help them live a comfortable life.

• Secure Future: Life insurance for NRI can secure your family’s financial future by providing them with death benefits in the event of your death. This payout can be used by your family to pay for any unexpected emergencies and the child’s education fees.

• Lifelong Goals: With the survival and maturity benefits of universal life insurance or cash value life insurance plans, you can grow your wealth over time. This amount can be used by you or your family to fulfil your lifelong goals, like buying a house or going on an expensive vacation. Your child can also use this corpus to fund their dreams, like investing in a business or paying for their wedding.

• Financial Obligation: The payout received from the NRI life insurance plan can help your family pay for any pending loans or debts like home loans or car loans. This can help them lead a stress-free life while maintaining their current quality of life. 

• Easy Claim Settlement: The claim settlement process of an NRI life insurance plan is way easier than any other international life insurance plan as your family won't have to travel to the locations of the insurer just to get their claims settled. If the insurance company is located in India it would be easier for the family to get their claims settled. 

*Note: There are certain eligibility parameters that an NRI should be careful about before buying the best term insurance plan for NRI.

Why Should You Buy Life Insurance for Expats From India?  

There are various protection plans and whole life insurance plans available, but as an Indian citizen, you should buy life insurance for NRI in India because of the following reasons.

• Lower Premium Rates: Indian insurers offer premium rates that are about 40-50% lower than the international life insurance for expats offers. This is especially beneficial for people who are looking to gain a large life cover at substantially lower premiums.

• Claim Settlement Ratio: The claim settlement ratio of a company lets us know the reliability of a company in settling claims of an insurance company. The Indian insurance regulatory body IRDAI releases this ratio every year for all the companies registered under it. Suppose an insurance company has received a total of 100 claims and they settled 97 of them, then the CSR of the company would be 97%. A CSR of over 95% is considered good as they have a better chance of settling your family’s potential claim than a company with a lower CSR.

• Zero Cost Option: The zero cost term plan is available in pure risk cover plans or protection plans allows you to exit the plan at a specific point as decided by the insurer and receive all the premiums you paid towards the policy back at the end of the policy.

• Bigger Pool of Insurers: The larger number of insurance companies allows you to choose an insurance for expats from an insurer that suits your requirements the best. You can compare protection plans and their premium rates from different insurers and purchase the one most suitable for you.

• Extra Discount: Choosing the annual premium payment mode with Indian insurers can earn them an extra 5% discount and an 18% GST waiver, thereby, reducing overall costs.

• Special Exit Option: Term insurance plans bought from Indian insurers offer special exit benefit (which is only applicable in some plans) allowing the policyholder to exit his term life insurance plan at a specific time period and therefore, receive a full refund of all paid premiums. This special exit option offers certain flexibility which is similar to zero cost term insurance plans.

• Tele/Video Medical: During Covid due to the stricter restrictions every individual looking to purchase a term insurance policy for NRI in India had to travel all the way back to India just to get their medical exam cleared in person. But as the pandemic is subsiding the restrictions have been loosened and now you can purchase NRI life insurance from anywhere in the world and get your medical exam cleared via tele or video medical channels.

Does the NRI Need to be in India while buying the Life Insurance Plan?

It is not important to be physically available in India while purchasing a life insurance plan for NRI. It is advised to buy term plan or whole life insurance plans after comparing all the options which are available. At the onset of the pandemic, the underwriting rules and regulations were quite tightened, and customers were required to undergo physical medical tests, the life cover amounts were capped. Now, with relaxed rules, NRIs can get large cover and protection for expats with tele or video medical examinations instead of physical tests, where they can easily schedule an online check-up. 

Who Can Buy Life Insurance for NRIs From India?

The following people can buy cash value life insurance, universal life insurance, or protection plans in India:

• NRIs

  Non-resident Indians (NRIs) are Indian citizens who live outside India

• PIOs/OCIs

  Persons of Indian origin and Overseas Citizenship of India Cardholders can buy term plans for NRIs

• Foreign Nationals

  People who are citizens of other countries and live in India

How to buy Life Insurance from Indian Insurers with Policybazaar?

You can now buy term plan from India in an online mode, from the comfort of your home, by simply following the following steps:

• Step 1: Go to Policybazaar's official website and then select 'Term Insurance'.

• Step 2: Enter all necessary details, like your name, email address, gender, and contact information.

• Step 3: Provide other information about your occupation type, educational background, yearly income, and smoking and drinking habits.

• Step 4: Choose the most appropriate term life insurance plan and proceed to pay using your preferred payment method.

Documents Required To Buy NRI Life Insurance Plans in India

Here is a list of the documents required by Indian expats to buy the best life insurance policy in India:

• Address proof of the foreign location

• Valid visa’s copy

• Passport’s front and back side

• Employment ID proof

• Previous entry-exit stamp

• Photo

• Last 6 months’ bank statement

• Last 3 months’ salary slip

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