Life is uncertain. When life throws unexpected curveballs, consequences can be worst, and all we can do is only be prepared for it. This is when life insurance comes into the picture. Term life insurance is a pure protection plan that acts like a financial shield to your loved ones against life’s uncertainties. During an unfortunate event like death, your loved ones are secured financially with the large sum assured (life insurance coverage) chosen by you at the time of purchasing the policy.
This can help your family maintain financial stability even when you are not around. Term insurance plans can be availed by all Indian citizens. Even the Foreign Exchange Management Act of 1999 allows Non-resident Indians (NRIs) and Persons of Indian Origin (PIOs) to buy term insurance plans offered by life insurance companies in India. So, secure your family and loved ones financially by availing of the term life insurance plans available online for NRIs.
About NRI Day1
Pravasi Bharatiya Divas, which is also known as Non-Resident Indian (NRI) day, is also celebrated in India on the 9th of January every two years. The significance of this celebration is to strengthen the overseas Indian community’s engagement with the Government of India to contribute to the country’s development and to connect with their roots. The day has its roots in the Indian freedom movement led by the Father of the Nation, Mahatma Gandhiji, who returned from South Africa in 1915.
What is term plan?
A term plan is a pure-risk life insurance plan wherein the policyholder pays the least premium to provide maximum coverage to the insured person’s life for that specific period.
Term Insurance for NRIs:
If you are a non-resident Indian staying in a foreign land away from your family, celebrate your day by availing of the term life insurance plan online to shield your loved ones. Though NRIs can avail the life insurance coverage in the country of their residence, it comes with a lengthy process. Many insurance companies offer term insurance plans for NRIs in India on the digital platform. There is no need for NRIs to be present in India to purchase the term insurance policy. Term insurance can be purchased online from anywhere. Most insurance companies issue online term insurance policies without any pre-medical tests. If need be, many insurance companies conduct telemedical examinations. Premium may also vary based on various factors, including the risk factor in the country of residence. Let us first look at the features of the term insurance plan for NRIs.
Features of Term Insurance Plan for NRIs:
The following are the features of term insurance for NRIs
- Quick and convenient:
You need to keep scan copies of your important documents like age proof, income proof, and passport ready to start the online buying process. All you need to do is fill up the online proposal form with all the relevant information, upload all the necessary documents and make the premium payment to complete the process. Buying term insurance online in India is simple and quick for NRIs to secure their loved one’s financial future.
- Customisable amount of cover:
When buying a term insurance plan, it is important to buy the right, adequate coverage that ensures financial stability for your family even when you are not around. NRIs can avail of term insurance coverage starting from a sum assured of INR 2 lakhs to INR 5 Crs. Some of the term insurance plans offered by well-known insurance companies do not come with an upper limit. The amount of sum assured can be chosen as per your insurance needs.
- Flexibility:
Any NRI above 18 years of age can opt for a term insurance plan online. The coverage can be availed for up to 65 years, depending on the terms and conditions of the insurance company. Some insurance companies offer whole life cover on term insurance plans availed by NRIs. You get the flexibility to choose the policy term based on your insurance need varying from 6 months to 25 years and more.
- Easy payment options:
NRIs can use bank internet payment options to buy term plan online. You can pay through NRO, NRE, or FCNR account at your chosen frequency. NRO account can be used if the coverage is bought by making payments in Indian currency. NRE, FCNR account, or SWIFT remittance can be used if the payment is in foreign currency.
The Benefits of Buying Term Insurance for NRIs
The following are the main benefits of term insurance for NRIs:
- Financial stability
The main benefit of the term insurance policy is the protection against the eventualities that ensure the financial stability of your loved ones even when you are not around in this world. The lump sum benefit offered by the term insurance policy during an unfortunate event to the beneficiary can be utilised to pay out the outstanding debt and day-to-day expenses and meet family members’ goals.
- Customisation
The term insurance policy offered by the insurance companies for NRIs comes with many riders, such as critical illness rider, accidental death benefit, income rider, an accidental disability rider, etc., which can be chosen based on the requirement to enhance the coverage. Customisation benefit ensures you get the tailor-made cover.
- Flexibility to choose the payout:
Many term insurance policies come with varying payout options, such as lump sum payout, payout in instalments, or a combination of both. Depending on the family’s needs, you can choose the payout as convenient for your loved ones.
- Tax benefit
The premium you pay towards term insurance coverage qualifies for tax deduction under Section 80C of the Income Tax Act, 1961. Tax exemptions can also be availed under Section 10 (10D) of the Income Tax Act, 1961, on the payout2.
Term insurance policy offers many benefits; thus, NRIs should avail adequate term insurance coverage to secure their family’s future dreams.
