Term Insurance for NRI in India

NRI Term Insurance Policies - Features

1. Policy Term

   Term insurance policy 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.

2. Premium and Sum Assured

   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:

   • Term of the policy
   • Sum assured
   • Payment frequency of premium (monthly, quarterly, half-yearly, annual) and
   • The riders opted if any.

   In case of the demise of the policyholder, the sum assured is paid to the nominee in their NRE account.

3. Grace Period

   In case a 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.

4. Policy Renewal

   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.

5. Premium Payment through Internet Banking

   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 payment modes include- Remittance in foreign currency, NRO bank account, NRE/ FCNR bank account.

Document Required

The documents required by the insurance company include -

• Proposal form
• Proof of age
• Income proof
• Report on the health condition
• Attested passport copy
• Application amount that is equal to the first premium, etc.

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:

• Nature of job
• Country of residence and
• Income of the policyholder

Wrapping it up!

The various companies offering term plans 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 popularity of term insurance among NRIs has given various companies a platform to capitalize on the potential and drive mutual growth.

If 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