Is Your Term Insurance Valid If You Move Abroad?

Is Term Insurance Valid Outside India? 

The simple answer is ‘Yes’. PIOs and NRIs can buy term plan offered by Indian insurance companies. Before discussing the pre-requirements of having a term insurance plan in India as a PIO or NRI, let’s discuss who NRIs and PIOs are. 

NRI can be an Indian citizen or a foreign national of Indian origin with roots, descent, or origin in the Republic of India. The NRI category includes spouses, parents, and children of those who have moved abroad for employment, with specific definitions provided in the Income-Tax Act 1961 and by the Ministry of External Affairs. With only a few variations, buying term insurance is nearly similar for residents and non-residents. 

Therefore, the answer to ‘does term insurance cover death outside India’ is yes, term insurance is valid and offers cover outside India.

Is the Death of an Indian Citizen Outside India Covered by Term Insurance? 

Yes, natural death during a short trip is generally covered by term insurance, irrespective of the location. However, if you buy term plan as an Indian citizen and then become an NRI due to employment or other reasons, it is important to inform your insurer about your relocation plans. The result of ‘what happens to my life insurance if I move abroad’ may vary based on the destination and associated risks, leading to the continuation of your policy without changes or necessary modifications.

What are the Key Features of Term Insurance for NRI?

You can understand what is term insurance key features by taking a look at the following table:

What are the Documents Required If You Move Abroad? 

The documents required may vary from one insurer to another. Still, one of the most important documents that an insurance company will request you to submit are: 

• Passport front and back side 

• Employment ID Proof 

• Valid Visa Card 

• Last entry-exit stamp 

• Last 6 months’ bank statements and Last 3-month salary slips

• Photo 

• Foreign Address Proof 

What is the Claim Initiation Process for NRIs? 

In case of the death of NRI, who is a policyholder outside of India, here are some of the additional documents that are required to be submitted to the insurance company to initiate the claim process, other than the regular type of documents required for term insurance for NRI: 

• Copy of the death certificate that is verified by the Indian Embassy located in the death’s country

• Cause of death certificate 

• The certificate of employer 

Is There an Obligation to Provide Proof of Medical History? 

It is important to note that you must provide information about your medical conditions upon request from your insurance company. Whether you are an NRI or a resident, disclosing pre-existing health issues is mandatory. While NRIs may undergo tele-medical examinations, concealing crucial information can invalidate your insurance coverage.

What are the Term Insurance Plans in 2024

*Disclaimer: ^~Top 5 plans based on annualized premium for bookings made on https://www.policybazaar.com in the first 6 months of FY 24-25. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. The list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website www.irdai.gov.in

Note: You can also use term insurance for NRI premium calculator to estimate the applicable premium payable for the desired NRI term insurance.

Wrapping Up!

The straight answer to the question ‘Is term insurance valid outside India?’ is yes, as there is a sizeable Indian diaspora in foreign countries. Buying term insurance is a prudent measure for establishing a financial safety net. However, it is essential to be aware that not all NRIs may access term life insurance, as some Indian insurers have a list of countries where they do not offer services. Therefore, it is important for individuals to confirm if their residential place is categorized as a high-risk area.  

Note: Check all the best term insurance plan 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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