As an NRI residing in the USA, you are possible to be constantly worried about the security of your loved ones back in India. If someday anything happens to you, your loved ones should be financially capable to deal with the loss of income. To protect them, you can buy a comprehensive term insurance plan from any insurance company in India that enhances its coverage to NRIs in the USA.Read more
|Term Life Insurance Plans in USA||Entry Age||Maturity Age||Sum Assured|
|PNB MetLife Mera Term Plan Plus||18 years||75 years||Min:50 Lakhs
Max: 1 Crore
|Max Life Smart Secure Plus||18 years||85 years||Min: 25 Lakhs
Max: 10 Crores
|Bajaj Smart Protect Goal||18 years||85 years||Max: 2 Crore|
|HDFC Click 2 Protect Super||18 years||85 years||Min: 50 Lakhs
Max: 20 Crores
|ICICI iProtect Smart||18 years||75 years||Min: 50 Lakhs
Max: 10 Crores
|Tata AIA Sampoorna Raksha Supreme||18 years||85 years||Min: 25 Lakhs
Max: 10 Crores
Yes, NRIs living in the USA can buy term life insurance in India to secure their families in case of any uncertainty. Whether an NRI lives in India or abroad, the FEMA (Foreign Exchange Management Act) allows NRIs to buy term plans from India. A Non-Resident Indian (NRI) does not necessarily need to be living in India to buy a plan, yet in some scenarios, it is quite easier to buy a term plan than abroad.
Term insurance plans provide longer protection for the life assured and his/her family. They can choose a life cover up to 100 years of age.
Term plans help NRIs living in the USA in protecting the family’s future by providing financial security even when the main sole earner is not around. Also, it gives comprehensive stability to the loved ones which help in living peacefully without panicking about the future.
Your grieving family can visit the nearest insurer’s branch in their residential city to process the claim settlement without traveling or any other hassles.
In case of an outstanding loan at the time of your demise, the benefits from the plan can help pay off any loan, debt, or the financial obligation. However, ensure that the coverage is important to take care of your daily requirements.
Following are some of the points NRI should consider while purchasing a term insurance plan from India:
There are many insurance companies listed under IRDAI in India that offers comprehensive term insurance for NRIs with high coverage at low premium rates. NRIs can easily buy term plans from any of the companies with an easy and quick online process. Indian term insurers offer various benefits for NRIs living in the USA than foreign insurers:
Financial protection for family in India
Long-term coverage i.e., up to 100 years of age
Sum assured can go up to 25 Crores
The easy and hassle-free payment process
Term insurance plans for NRIs from India come with a difference of around 50-60% in price, especially when compared with developed countries. The Term insurance plans purchased from India would result in a 50-55% lower premium than abroad. But the price difference vary from country to country. So, it is always suggested to buy term insurance plans in the USA from India at low premium rates.
Indian term plans, the best part is that the affordability of term plans comes along with the features and benefits that cater to Indian customers. Whereas the plans in the USA might have been specifically designed to cater to the needs of that country.
Let’s understand this with the help of an example:
In the USA, the cost of a term insurance plan for a death benefit or a sum assured amount of Rs. 2.05 Crore for a 35-year-old individual is around Rs.2239 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.2142 per month.
Simply put, leading insurance companies abroad , USA cost you more than Indian Insurance companies. Indian Term plans are around 5% cheaper than foreign countries. So, it is always suggested to buy term insurance plans in USA from India at affordable premium rates.
Note: You can compute the term insurance plan premium rate with term insurance for the NRI premium calculator.
Geographical boundaries are no longer a barrier if you want to buy a term plan in India. NRIs can now easily opt for plans in India that allow them to schedule a tele or video medical check-up from their residential country.
Tele-medical examination in insurance is simple as the company follows the tale-underwriting process under which the authorized practitioner on behalf of the insurer makes a call to understand the current medical state and history of the customer. The doctor will then ask certain questions to check the lifestyle practices and medical conditions. In response, he/she has to provide the right details over a video or phone call.
Once a term plan is issued, any insurer in India will provide coverage against death regardless of the NRI’s residential country. In order to submit the death claims, the beneficiary/nominee of the plan will have to submit all the necessary documents requested by the insurance company. Taxes and tax savings benefit on the term insurance plan are based on the income tax laws prevailing in the country in which NRI resides.
CSR is the percentage of claims that an insurer settles annually out of the total claims registered. It indicates the credibility and reliability of the insurance company. As per IRDAI, the term insurance company having CSR above 95% is considered good and shows the quick settlement of claims. So, almost all the Indian companies have a good CSR value like HDFC Life’s CSR is 98.01%, ICICI Prudential Life’s CSR is 97.90% and Max Life’s CSR is 99.33% for FY 2020-21.
A special exit facility allows the policyholder to opt out of the plan at a certain point and get a refund of all the premium amount paid for the base protection benefit. Zero-cost term insurance plans are also available in the India insurance market by Max life and HDFC Life which offers the option to exit the term plan at a certain age and receive back all the premiums that he/she paid minus GST.
Purchasing a term insurance plan from an Indian insurance company allows you to get a GST waiver of up to 18%. This means you can easily save on your premiums if you make payments using NRE accounts or in foreign currency.
Step 1: Visit Term insurance for NRI
Step 2: Fill in the basic details such as date of birth, name, contact details, and country code.
Click on ‘View Plans’
Step 3: Answer the questions about smoking or chewing habits, annual income, occupation, education, and language.
Step 4: Choose the plan that suits your financial needs and proceed to pay.
Foreign Address Proof
Copy of Valid Visa
Passport front and back side
Last entry-exit stamp
Employment ID Proof
Last 6 months' bank statements and Last 3 Month salary slip