Is Your Term Insurance Valid If You Move Abroad?

Term insurance is the most effective way of providing security to your family in your physical absence. It is one of the simplest and affordable types of insurance plans and this is the reason that it is enjoyed by the common people. Term insurance’s dynamic nature makes it popular not just in Persons of Origin (PIOs) but also in Non-Resident Indians (NRIs).One point of concern that every individual owning term insurance is, whether their policy is valid if they move abroad?

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This article will cover the answer to your above question and also some important details about term insurance if you are planning to buy one.

Validity of Term Insurance If You Move Abroad

Moving abroad is a very common practice these days. However, shifting your base from one country to another comes with a lot of challenges as well. From change in lifestyle to change in the environment, everything takes a turn.

People shifting abroad have to take care of many things before going. One question related to insurance that comes to their mind is “weather my term insurance policy be active if I move abroad or not?”

The answer to this is yes. Moving to another country does not affect the term insurance policy taken in India. It continues as long as its premiums are paid.

Some other insurance plans like health insurance do not work outside India.

Let us now look at the term insurance in detail.

What Is Term Insurance?

Term insurance is considered to be one of the purest forms of insurances. An individual can secure the future of his/her family financially in case of his/her untimely demise. Term insurance offers financial coverage to the nominee of the policyholder if the policyholder passes away during the policy tenure, keeping in mind that all the premiums are duly paid to date. 

Thinking about getting a term policy? Know the important facts about it!

  • Term insurance is a fixed payment plan with a fixed payment rate for a defined tenure.
  • The insured can even renew his/her policy after expiration or can discontinue it as per their convenience.
  • The nominee gets to claim the benefits of the policy in case of the untimely demise of the policyholder during the policy term.
  • The nominee can opt for either a lump sum amount or a monthly payment option as per his/her preference.
  • Some term plans also cover disability benefits.

Key Features of Term Insurance

Aspects

Term insurance

Type of Plan

Term insurance is a pure risk coverage plan. It protects the financial future of your family and loved ones in case of your untimely demise.

Coverage

Covers uncertainties of life

Ideal for?

An absolute must financial tool for everyone

Premiums charged

Term insurance is the most affordable life insurance product available in the market.

You can avail of term insurance with a high sum assured at nominal premiums.

Maturity benefit

No maturity benefit is associated with term insurance

Rider benefits

Coverage can be enhanced of your term insurance plan with rider benefits such as critical illness cover, accidental death benefits, the return of premium benefit, etc.

Tax benefit

Available u/s 80C and 10D

Death benefit

Only the death benefit is offered by term insurance

Sum assured

Sum assured as the death benefit is mostly 15-20 times the annual income of the policyholder

Liquidity

Term insurance does not offer any liquidity.

Best Term Insurance Plans In 2021

Here is a list of top term insurance in India in the years 2021:

Term Plan

Entry Age(Min-Max)

Policy Term (Min-Max)

Accidental Death Benefits

Critical Illness Benefits

Waiver of Premium

Terminal Illness

Aditya Birla Sun Life Protector Plus Plan

18-65 years

5-70 years

Paid

Paid

Paid

Included

Aegon Life iTerm Plan

18-65 years

18-65 years

Paid

N/A

Paid

Free

Ageas Federal iSurance Flexi Term Plan

18-60 years

10-62 years

Paid

N/A

N/A

N/A

Aviva LifeShield Advantage Plan

18-55 years

10-30 years

Included

N/A

N/A

N/A

Bajaj Allianz eTouch Lump sum

18-65 years

18 - 65 years

Paid

Paid

Free

N/A

Bharti AXA  Term Plan eProtect

18-65 years

10-75 years

Included

N/A

N/A

N/A

Canara HSBC iSelect+ Term Plans

18-65 years

5-62 years

Paid

N/A

N/A

Paid

Edelweiss Tokio Life My Term+

18-55 years

10-85 years

Paid

Paid

Paid

N/A

Exide Life Smart Term Plan

18-65 years

10-30 years

Paid

Paid

Paid

N/A

Future Generali Flexi Online Term Plan

18-55 years

10-65 years

Paid

N/A

N/A

N/A

HDFC Life Click 2 Protect 3D Plus

18-65 years

18-65 years

Paid

Paid

NA

NA

ICICI Prudential iProtect Smart

18 - 60 Years

18 - 60 Years

Paid

N/A

Free

Free

IndiaFirst Anytime Plan

18-60 years

5-40 years

N/A

N/A

N/A

N/A

Kotak e-Term Plan

18-65 years

5-75 years

Included

Paid

Included

N/A

LIC E-term Plan

18 - 60 years

18 - 60 years

N/A

N/A

N/A

N/A

Max Life Online Term Plan Plus

18-60 years

18-60 years

Paid

N/A

Included

N/A

PNB MetLife Mera Term plan

18-65 years

18-65 years

Paid

Paid

N/A

N/A

Sahara Kavach

18-50 years

15-20 years

N/A

N/A

N/A

N/A

SBI Life eShield Plan

18 - 65 years

18 - 65 years

Paid

N/A

N/A

N/A

SBI Smart Shield

18 - 60 Years

18 - 60 Years

Paid

N/A

Free

Free

Shriram Life Cash Back Term Plan

12-50 years

10-25 years

Paid

Paid

N/A

N/A

SUD Life Abhay

18-65 years

15-40 years

Paid

N/A

N/A

N/A

TATA AIA Maha Raksha Supreme

18-70 years

10-40 years

Paid

N/A

N/A

Included

*Policybazaar does not endorse, rate or recommend any particular insurer or insurance product by an insurer or any other financial product.

Summing It Up:

If a person has bought a term insurance plan at the right age, it can turn out to be one of the best investments of his/her life. It provides great coverage and protects the family of the insured in the hour of need. So, if you are in India or moving abroad, term insurance will make sure that it protects your family financially when you are no longer there to support them.

Written By: PolicyBazaar

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