What is Term Insurance?
Term insurance is a type of life insurance product, which provides coverage for a pre-specified term or period. If the life assured expires during this term, the nominee/beneficiary of the plan will receive the death benefit. A standard term insurance variant has no cash value which means that if the policyholder survives the policy tenure, the policy does not return any amount, with the exception of the Term Return of Premium Plan (TROP).
The term insurance plans are available for individuals between the age group of 18 years to 56 years with the maximum age at maturity up to 85 years. The policy tenure can be from 5 to 50 years and the sum assured amount can be from Rs. 20 Lakhs to Rs. 1 crore and even more than that.
As discussed, term insurance is a basic type of life insurance that provides high coverage at low premium rates. Any individual can purchase a term life insurance policy and NRIs are not at all different. SBI Life insurance offers a comprehensive range of term insurance plans for NRIs. Let’s discuss:
SBI Life Term Insurance for NRI
Similar to Indian Residents, NRIs (Non-Resident Indians) are also eligible to invest in term insurance plans. SBI Life Insurance is a collaboration of BNP Paribas Assurance and State Bank of India, which provides comprehensive life insurance coverage at a competitive rate to help every Indian whether living in abroad or India. SBI Term Insurance for NRI is specifically designed to suit the predictable requirements of NRIs in different life stages such as retirement goals, higher education of children, and family’s financial security.
SBI Term insurance plans for NRIs offer a comprehensive range of features, benefits and they help secure their family members living in India in case of any unpredictability. In addition to this, the term insurance premium rates are quite economical, so it is advisable to opt for SBI term insurance for NRI. Here are some of the best SBI Term Insurance Plans for NRI:
Eligibility Criteria To Purchase SBI Life Term Insurance For NRI
There are various conditions for an individual to be considered an NRI and be entitled to buy a term insurance plan in India. Though the specific T&Cs vary with the insurer, the basic needs are still the same. Read on to know more about the eligibility criteria of SBI Term Insurance for NRI:
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You have lived outside India for a specific time period in the plan.
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You should have an Indian passport at some stage of your life
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Your grandparents and parents must have been the Indian citizens
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You must have married an Indian citizen
The premium rates for these policies depend on the policyholder’s age, the medical condition, the plan features, and the sum assured, among others
Documents Required to Buy SBI Term Insurance for NRI
The documents that are needed to submit for SBI Term Insurance for NRI plans:
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Completely filled proposal application
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Attested passport copy of your residential country
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Medical/Health reports signifying the health issues, if any
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Age proof
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Income Proof
How to Choose SBI Term Insurance for NRI?
Securing a term insurance cover for yourself is one of the main financial management steps as an NRI. Purchasing a term insurance plan as a non-resident Indian is the same as buying the plan as an Indian Resident. However, you do have a lot of options to secure the term cover. Here is how you can select and purchase a term life insurance:
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Online Presence
Ensure that you receive sufficient detail about the plan, insurance company, and service channels online, through the insurance company’s website. The website of an insurer should allow you to purchase and manage your plan online.
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Claim Settlement Ratio
Claim settlement ratio (CSR) is an important parameter for term insurance providers as it indicates the quality of the company’s operations and the speed of the claim settlement. This represents how many claims the company could settle in the last fiscal year out of every 100 claims forms received. The CSR of SBI Life insurance is 93.09% as per IRDAI 2020-21, which indicates the quick claim settlement.
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Claim Settlement Process
Ensure a hassle-free and easy claim settlement process. The better the claim settlement procedure of the insurance company, the more comfortable your loved ones will be in financial difficulty.
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Limited Premium Payment Option
A limited premium payment option can also be used to pay the whole premium amount in a short time. This option is right for those NRIs who expect to return after a few years to a foreign land.
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Premium Payment option
Various life insurers allow transactions in numerous foreign currencies. Moreover, you should keep in mind that you have paid premium amounts in foreign currency, as the claim settlement is permitted in the foreign currency.
