Term life insurance is the purest form of life insurance plan that offers financial protection to the family members in case of unforeseen death of the sole earning member of the family during the policy term. This plan is important for NRIs who often live in different countries and ensure a financially stable future for their family. With telemedical check-ups, the buying process of term insurance has become hassle-free for NRIs living anywhere in the world.
Let’s discuss in detail:
Can NRIs Buy Term Plans in India?
Yes, NRIs can easily buy the right term insurance plan in India.
Geographical boundaries are no longer a barrier for NRI customers who are willing to buy term insurance plans in India. They can now easily opt for term plans in India that allow them to schedule a video or telemedical check-up from their residential country. On the contrary, an NRI can buy a term plan when he/she visits India.
Why buy Term Insurance early?
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
See how age affects Term Insurance Premiums
See how age affects Term Insurance Premiums
Best Term Insurance Plan in India For NRI
Here is the list of best term insurance for NRI in India:
Disclaimer: Policybazaar does not endorse, rate, or recommend any particular insurer or insurance product offered by an insurer.
NRI Term Insurance Policies - Features and Benefits
High Life Cover at Affordable Rates
You can get a high amount of life cover from a term plan by paying a low premium rate. Premium payments can be made either monthly bi-yearly, quarterly, or annually. The earlier you buy a term plan, the lower the premium you have to pay.
Video or Tele-medical check-up
Policyholders can now easily purchase NRI term plans in India that help them to schedule a telemedical checkup from their residential country.
At the onset of the pandemic, the underwriting rules were tightened and policy buyers were required to undergo physical medical tests. The coverage amounts had been capped. But, now with the relaxation in rules and regulations, NRIs can receive large covers with tele-medicals checkups.
Coverage for Terminal Illnesses
Term Insurance Plans for NRIs provide you coverage against terminal illnesses. It gives you lump sum payouts in case of the diagnosis of a terminal illness.
Term Insurance for NRIs offers longer coverage. Some plans provide coverage even for as long as 99 years. The plan offers a comprehensive and flexible cover with multiple options to financially protect the life assured and his/her family members.
Limited Pay Benefit
NRIs can also avail of limited pay benefits in term insurance plans. In this, recurring payments are made for a pre-specified limited time period. However, the life cover remains intact throughout the policy tenure. Thus, you can pay your premiums for a short period of time and save money accordingly.
Accidental Death Benefits
NRIs can add the Accidental Death Benefit rider to their term insurance plan. This offers an extra sum assured and provides additional protection in case of accidental death.
Does the NRI need to be present in India while buying a term plan?
As an NRI, planning a visit to India solely for the purpose of buying a term plan is no longer a mandate. Tele-medical or Video medical check-ups have ensured that now NRIs can buy a term plan from their residential country. Simply put, it is not essential for NRI to be present in India while buying a term plan. They can easily buy a term plan from anywhere in the world with the easy issuance process via video medicals.
What Are the Documents Required for Term Insurance Plans in India for NRI
The documents required for Term Insurance for NRI by the insurance company can be easily submitted online. The documents are
Passport front and back side
Travel Questionnaire (Attached )
FATCA Form (Attached )
Employment ID Proof
Valid Visa Copy
Last entry-exit stamp
Last 6 months bank statement and Last 3 Month salary slips
COVID vaccination certificate
Foreign Address Proof
How Are Indian Term Insurers Better than Foreign Term Insurers?
The presence of a large number of insurers in India: In India, there are various life insurance providers enlisted under the insurance regulating authority, and every company offers different types of Term insurance for NRIs with high life cover at affordable rates.
Tele-medical Check-ups: NRIs can now easily schedule a video or telemedical check-up from his/her residential country when buying term insurance for NRIs.
Claim Settlement Ratio: The CSR is the % of claims that an insurance company settles yearly out of total claims. It indicates the reliability and credibility of the insurer. So, if the CSR of an insurer ranges between 95-100%, you need not think twice before purchasing a term plan. Almost all the Indian term insurers have a good CSR such as Max’s CSR is 99.35%, and Tata AIA CSR is 98.02%.
Low Premium Rates: Let’s understand this with the help of an example:
In the UAE, the cost of a term insurance plan for a death benefit or a sum assured amount of Rs. 1.05 Crore for a 30-year-old individual is around Rs.2000 per month. for a policy tenure of 15 years. And, in India, the term insurance premium rates for NRI are as low as around Rs 840 per month.
||Foreign Insurer (UAE)
|Cover Till Age
|Life Cover (in INR)
|Life cover in AED (UAE Dirham)
|Premium Rate of Leading Insurer
||Rs. 2198 per month
||Rs. 841 per month
Wrapping It Up!
If you are an NRI and you are considering getting term insurance, it is best to get one immediately. You can wait around and keep planning, but the premium will certainly increase as you age. So to ensure that your family can lead a secure life, you must start investing in term insurance as early as possible.
Terms plans for NRIs add an extra layer of protection to their safety shield even in policyholders’ absence. With Tele-medical examinations, buying a term plan is easy and hassle-free for NRIs. It is advised to read all the Terms and Conditions of the policy before buying NRIs term insurance plans.
Disclaimer: Policybazaar does not endorse, rate, or recommend any particular insurer or insurance product offered by an insurer
Can NRIs Buy Best Term Insurance Plans in India?
Ans: Yes, NRIs are eligible to buy term plans in India. Term Insurance for NRI should always be based on his/her specific needs and preferences.
Can I purchase more than one term plan?
Ans: Yes. It is possible to buy multiple-term insurance plans for increased protection. With multiple-term plans, the life assured can receive extra benefits by buying additional rider benefits. So, choosing more than 2 plans adequately covers an individual and his/her family’s changing needs such as a child’s education or marriage.
What if an NRI does not Pay Term Plan Premium on Time?
Ans: In case an NRI Term Insurance policyholder misses out on the date of premium payment or fails to pay then 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 15 days.