Foreign Exchange Management Act has now made it possible for PIOs (Persons of Indian Origin) and NRIs (Non-Resident Indians) to purchase term insurance plans in India. If you are an NRI i.e. Non-Resident Indian, you can buy term insurance plans which are specifically designed for individuals who reside outside India. These plans secure the future of your family and protect them in case of your absence.
Read more#All savings and online discounts are provided by insurers as per IRDAI approved insurance plans | Standard Terms and Conditions Apply
Various companies offer customized options that might interest NRIs. Term insurance plans offered to NRIs are mainly available online and they do not require you to undergo a medical examination. Let’s understand the term life insurance plans for NRIs in India.
Every person in the universe thinks about his/her family protection in case of his/her absence. If as an NRI, one is the sole earning member of the family, the feeling of being protected and secured makes him/her more confident and ready for the future. It is very easy for an NRI to buy an online term life insurance policy. As per RBI i.e. Reserve Bank of India, the premium amounts should be received using proper banking channels when making transactions outside India. However, why an NRI needs to buy a term insurance plan. Here’s a quick laydown:
As we have discussed, the premium amount is the same for NRIs and Indian Residents for the same term life insurance plan. However, if in case an NRI is living in a country where the risks related to life are higher, then premium amounts are higher. Now, what is a high-risk country? A country that is susceptible to military or civil issues or has an unstable government and continuously facing violent attacks. Likewise, low-risk countries are classified by stability in their governance, peace, and good state of laws. An NRI who lives in a high-risk country is subjected to a high premium charge.
The premium amounts for NRI’s in India are payable through different modes:
It is very important to keep a check in the currency in which the policy is issued as the insurers issue them in the residential currency of the NRIs or Indian Rupees. If the policy that is issued is in the foreign currency, then they are required to pay a premium in that currency only from FCNR/NRE account in India. Whereas in case the policy is issued in Indian currency, premium amounts can be paid via NRO accounts.
For NRIs, the geographical restriction is one of the main concerns before purchasing term life insurance. An NRI doesn't have to be present in India while buying a term life insurance plan. However, if in case of medical examination, it will be performed at the insured’s expense if he/she is out of India at the time of policy commencement. The premium prices are similar for residents and NRIs when the involved risks are the same. The premium will only increase if the risk associated with policy also increases.
An NRI should buy a term life insurance policy to secure his/her loved one’s future objectives in case of his/her demise during the policy tenure. The premium available on insurance plans is variable, i.e. depending on the terms and conditions, features, and benefits of the policy. It also depends on the frequency of premium payment terms, health conditions, age, etc. The duration of the plan also varies based on the insurance products offered by different insurance companies in India.
01 Feb 2023
A term life insurance in USA can secure your family against the26 Dec 2022
Tata AIA term insurance login portal offers the company’s08 Dec 2022
Term life insurance plan secures the financial future of your07 Dec 2022
An NRI living in Singapore can easily buy the best term lifeInsurance
Policybazaar Insurance Brokers Private Limited CIN: U74999HR2014PTC053454 Registered Office - Plot No.119, Sector - 44, Gurgaon - 122001, Haryana Tel no. : 0124-4218302 Email ID: enquiry@policybazaar.com
Policybazaar is registered as a Direct Broker | Registration No. 742, Registration Code No. IRDA/ DB 797/ 19, Valid till 09/06/2024, License category- Direct Broker (Life & General)
Visitors are hereby informed that their information submitted on the website may be shared with insurers.Product information is authentic and solely based on the information received from the insurers.
© Copyright 2008-2023 policybazaar.com. All Rights Reserved.
+All savings provided by insurers as per IRDAI approved insurance plan. Standard T&C apply.