Term insurance offers financial protection to the family of the insured in case of demise. Every bread-earner wishes to offer financial security to his/her family in some way. In addition to Indian citizens, NRIs (Non-Resident Indians) are also eligible for the same. Here is the process of buying term insurance for NRIs and the features of the policy designed to benefit them.Read more
Non-resident Indians (NRIs) willing to buy term insurance can apply in two ways-
Your premium is decided on age at which you buy the policy and remains same, throughout your life
Premiums can increase between 4-8% each year after your Birthday
Your policy application could be rejected or premiums increase by 50-100%, if you develop a lifestyle disease
Term insurance for NRI generally can have tenure from 6 months to 25 years. The minimum age for getting NRI insurance is 18 years and the maximum age varies from 55 to 60 years depending on the terms and conditions stated in the policy.
Sum assured for NRI term plan varies from a minimum of Rs.2 lakhs to a maximum of Rs.1 crore. There is no fixed premium as the amount of premium depends on the following factors:
In case of the demise of the policyholder, the sum assured is paid to the nominee in their NRE account.
In case a NRI Term Insurance policyholder misses out on the date of premium payment then a feature known as a grace period is offered for the same. The policy is not abolished if the policyholder pays the pending premium during this period. For a policy with a premium payment frequency of 6 months or 1 year, the grace period is of 15 days.
Some term insurance policies offer the option for renewal of the policy at the time of maturity. The process requires the insured to pass through some tests related to health for meeting the criteria of renewal. Also, one should have a good track record where there are no delays or dues in the payment of premium on a date.
Non-Residential Indians also have the option of paying premiums through internet banking. For this process, the insured needs to have an account in any of the authorized banks that permit an electronic transaction to the insurance company. An NRI must be aware and well informed about all the terms and conditions related to internet banking when making a premium payment. Various online term plan payment modes include- Remittance in foreign currency, NRO bank account, NRE/ FCNR bank account.
The documents required for Term Insurance for NRI by the insurance company include -
When purchasing insurance via Mail Order Business
The insurance company might ask for some additional documents as well. There are some insurance companies which categorize the lives of people for setting the premium and sum assured. Here, the sum assured depends on the following:
The various companies offering term insurance for NRIs are - Life Insurance Corporation of India (LIC), ICICI Prudential Life Insurance, Max Life Insurance, Kotak Life insurance, etc. The awareness of insurance and its significance has slowly taken a good position among people all across the globe. The demand of term insurance among NRIs has given various companies a platform to capitalize on the potential and drive mutual growth.
If you are an NRI ad you are considering getting term insurance, it is best to get one immediately. You can wait around and keep planning, but as you age, the stakes will certainly get higher.
So to ensure that your family can lead a secure life, you must start investing in term insurance as early as possible.
Disclaimer: Policybazaar does not endorse, rate, or recommend any particular insurer or insurance product offered by an insurer
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