How to Buy Term Insurance in India as an NRI
Staying abroad typically keeps you away from family, but their well-being and financial security are always on your mind. Many NRIs attempt to protect their family in India in the event of an unfortunate occurrence. One of the simplest and least expensive ways is term insurance.
If you are an NRI who wants to know whether you can buy a term insurance policy in India or not, then yes, you can do it. It is easy, straightforward, and is done almost entirely online. Let us see step by step how you can buy term insurance in India as an NRI and why it can be your best money choice for the protection of your family.
What is Term Insurance?
Term insurance is a simple life insurance policy. You give a small amount of money, known as the premium, to the insurance company. The company, in return, promises to pay your family a fixed amount of money if you are not there during the term of the policy.
This amount, known as the sum assured, can help your family manage daily expenditure, pay off loans, and meet their long-term goals like funding children's education or purchasing a house. Term insurance policies are preferred as they are comparatively cheap but provide high coverage.
Can NRIs Buy Term Insurance in India?
Yes, it is achievable for NRIs to buy term insurance policies from Indian insurance companies. The majority of firms now offer term insurance for NRI customers, which is exclusively designed for foreign-residing individuals. Global coverage is provided by these policies, and this indicates your loved ones are financially protected wherever you live.
Why Should NRIs Choose Term Insurance in India?
The following are convincing reasons why NRIs choose Indian term plans:
- Lower Premiums: Indian term insurance schemes are generally less expensive compared to similar foreign plans.
- Rupee-based Benefit: In case of your death, the benefit to your relatives is settled in Indian Rupees, thereby facilitating them to cover expenses here in India.
- Trusted Insurance Companies: India has excellent and reliable insurance companies with high claims settlement ratios.
- Tax Benefits: You may even avail of tax benefits under Indian taxation.
Step-by-Step Guide to Buy Term Insurance in India as an NRI
1. Check Your Eligibility
Most insurers allow NRIs between 18 and 65 years to buy term insurance. You need to have a valid passport, proof of foreign address, and details of income.
2. Compare Policies
Surf the web and compare different term insurance plan. Compare the coverage, premium charges, claim settlement ratio, and other add-ons like accidental death or critical illness cover.
3. Choose the Appropriate Sum Assured
Choose the sum assured which will be enough for your family members to continue if you are no longer alive. A common thumb rule is to opt for a sum assured which is 10–15 years of your annual income.
4. Pick the Policy Term
Pick the period of the policy. The majority opt for the coverage till retirement or till major loans such as house loans are repaid.
5. Fill up the Application Form
You can fill it online. Be honest about your health, habits, and profession as false data may lead to denial of your claim in future.
6. Medical Examination
Few insurance companies need a check-up on your health. If you are abroad, you can have it done where you live presently or during a visit to India.
7. Give Documents Needed
Generally, you would need:
- Copy of Passport
- Copy of Visa or work permit
- Overseas address proof (such as utility bills or driving license)
- Income proof (salary slips, ITR, or employment letter)
- Passport-size photographs
8. Pay the Premium
You can pay using your NRE/NRO bank account, internet banking, credit cards, or even international credit cards.
9. Get Your Policy
Once the insurer reviews your form and medical reports, they will issue your policy. You’ll receive it through email and sometimes as a hard copy at your Indian or overseas address.
Important Things to Keep in Mind
Claim Settlement Ratio: Select an insurance provider with a claim settlement ratio of at least 95%. This will ensure that your family's claim is settled easily.
International Coverage: Make sure the plan covers death outside India too. Most Indian term plans for NRIs provide international coverage.
Payment Currency for Premium: You can pay in Indian Rupees or even sometimes even in local foreign currency.
Country of Residence Rules: Overseas insurance policies are governed by the laws of certain nations, so see if you need to report it for tax or legal reasons.
Online or Offline – Which is Better?
Shopping online is quick, easy, and tends to have lower premiums. You can compare and buy a plan from any place in the world. Offline buying through agents is good if you want expert advice, but it will be slightly more expensive. For the majority of NRIs, buying online is the better option.
Conclusion
Buying term insurance in India as an NRI is hassle-free and cheap. It enables you to secure your family's financial needs even while you are away. Choose a reputable firm, compare policies, and select the appropriate sum assured.
With internet sites and tailor-made term insurance for NRI policies, the entire process is highly convenient. Doing it today enables you to enjoy peacefully with the assurance that your loved ones are in good financial standing, irrespective of your worldwide location.
