What is an Expat Insurance?

What is an Expatriate?

Before exploring expat insurance, it's essential to define expatriate or understand what expat means. By definition, an expatriate refers to a person who resides outside their native country, typically for work or personal reasons. The term "expat" is a shortened form, used interchangeably. These individuals, referred to as expats, often maintain ties to their home country, especially in terms of finances and family obligations.

Expatriate Meaning: To define expatriate, it is someone who has chosen to live in a country other than their home country for an extended period.

Expat Meaning: Similar to expatriate, an expat is an individual who resides abroad for reasons like employment, education, or retirement.

Key Definitions:

• Expatriate Definition: A person residing in a foreign country temporarily or permanently.

• Expat Definition: A shorter form of expatriate, used to describe someone living outside their native country.

• Expat Meaning: Living or working abroad, often for professional reasons.

• Expats Definition: The plural of expat, refers to a group of people living outside their home country.

• Expats Meaning: The term used to describe individuals who are expatriates, i.e., living in foreign countries.

What is Term Insurance for Expats?

Term insurance for expats (or expatriates) offers protection to NRIs living abroad. This type of insurance provides financial security in the form of a death benefit, ensuring that the expat's family is cared for in case of an untimely event. Since term insurance only covers the policyholder for a specified period, it is often more affordable than whole-life policies.

Key Features of Expat Term Insurance:

• Affordable Premiums: Expats can get large cover at lower premiums compared to other types of life insurance, as term insurance only provides cover for a specific term.

• Global Coverage: NRIs and expatriates can secure term insurance in India, which offers global coverage, ensuring protection no matter where they reside.

• Death Benefit: The payout provided to the nominee helps the expat’s family manage finances during difficult times.

• Tax Benefits: Expatriates paying for term insurance can avail of tax benefits under Sections 80C and 10(10D) of the Indian Income Tax Act. 

• GST Waiver: Term Insurance for NRIs provides you with an 18% GST waiver on the premiums paid through NRE (Non-residential external) bank accounts supporting freely convertible currency.

What is the Importance of Expatriate Insurance?

Expatriates have unique needs that often involve managing finances both in their home country and the country they currently reside in. For many NRIs, having expat insurance in the form of term insurance provides vital financial security.

Benefits of Term Insurance for Expats:

• Financial Security: Ensuring your family’s financial stability even if you are residing outside India. 

• Affordable Premiums: Indian insurers offer much more affordable premiums compared to international term plans, making term insurance for expatriates much preferable.

• Annual Discounts: With term insurance for expats from India, you can get an additional 5% discount on the premiums by choosing to pay the premiums in an annual mode.

• Tele/Video Medicals: The tele and video medical feature allows expatriates all around the world to buy term insurance from the comfort of their homes. This enables them to buy a plan without travelling back to India.

• Pre-approved and Global: Expat insurance plans in India are usually pre-approved to a certain sum assured and offer global coverage, ensuring continued financial security for the family.

• CSR and Claim Assistance: In India, you get not only a variety of insurers to choose from, but you can also compare and find the most suitable insurer based on their CSR or the Claim settlement ratio. Along with that, Indian insurers provide 24x7 claim assistance as well.

How Expats Can Buy Term Insurance?

Expatriates or expats have two primary ways to buy term insurance:

• While Visiting India: Many expats prefer purchasing a term policy during visits to India. This can make medical examinations and documentation easier.

• From Abroad: NRIs can also apply for term insurance online. Various insurers offer tele/video medical examinations in the expat’s country of residence, making the process convenient for expatriates.

Who can Buy Expat Insurance from Indian Insurers?

Here is a list of people who are eligible to buy term life insurance or expat insurance from Indian insurers:

• NRIs: Non-resident Indians with valid Indian passports temporarily living abroad

• PIOs/OCIs: Persons of Indian Origin and Overseas Citizens of India are individuals 

  • Who have had Indian passports in the past

  • Spouse of an Indian citizen

  • Parents or grandparents were Indian citizens

• Foreign Nationals: Citizens of a Foreign country living in India

How to Buy Expats Term Life Insurance from India?

Here is a step-by-step guide on how to buy expat insurance from Indian insurers:

Step 1: Visit the term insurance for NRI page

Step 2: Fill in your name, gender, DOB, and other required information

Step 3: Select the right answer for your annual income, educational qualifications, occupation type, and smoking habits

Step 4: Choose the most suitable expat insurance and proceed to pay

Wrapping it Up!

For expatriates or expats living abroad, term insurance provides critical financial protection for their families, whether they are in India or elsewhere. With lower premiums, tax benefits, and global coverage, term insurance in India is a convenient and cost-effective solution for securing a family's financial future. As NRIs and expatriates navigate their lives abroad, term insurance ensures they can still provide for their loved ones back home.

Note: You should also check the term insurance benefits if you are planning to purchase the term insurance plan.