Term Insurance For NRI: Benefits And Process To Buy

Uncertainties can harm your finances at any time, whether you are a resident of India or not. Therefore, when living far away from our homes, we must have a helping hand that will take care of us if any mishaps occur in the future. NRI term insurance is a great financial asset that will become your backbone against mishaps. Read on to know the benefits, eligibility, and other details related to term insurance for NRIs in India.

What Is Term Insurance For NRIs? 

Term life insurance for NRIs is a life insurance product that can be bought by individuals with ease. Having term life insurance will provide you with peace and protection in times of uncertainty. Moreover, you can also accomplish certain life goals, such as purchasing a property or vehicle, starting a business, and others, through an assured maturity benefit. 

Benefits Of Term Insurance For NRI 

Here are some key benefits of purchasing NRI term insurance in India. 

• Long-Term Protection: Term insurance plans provide long-term coverage to the policyholders. Therefore, you can ensure that while living in India, if any financial emergency arises, a term insurance policy will have your back. 
• Tax Benefits: A premium paid by NRI towards their term insurance plan is eligible for tax deduction under Section 80C of the Income Tax Act, 1961. Moreover, you can also claim tax benefits on a premium paid towards the additional riders.
• Choose Your Payout: NRI term insurance in India offers multiple payout options to the policyholders. You can either choose to receive the payout benefit in a lump sum or regular income depending on your preferences. 
• Death Benefit: In case of the demise of the life assured the beneficiaries will receive the guaranteed death benefit. Moreover, the death benefit received against the NRI term insurance plan is eligible for tax deductions under Section 10 (10D) of the Income Tax Act, of 1961. 

Documents Required To Buy NRI Term Insurance Plan

Listed below are the documents that you will require to buy an NRI term insurance plan. 

1. Passport-size photograph
2. Residential proof of foreign address
3. Copy of visa 
4. Bank statements for the last 6 months
5. Employment ID proof
6. Salary slips of last 3 months
7. Entry and exit stamp 

Eligibility Criteria To Buy NRI Term Insurance 

Anyone who wants to purchase an NRI term insurance plan may have to satisfy the following eligibility criteria: 

1. You must have your residence for a certain period of time outside the country. 
2. You must have an Indian passport. 
3. Your spouse must be an Indian citizen. 

You must pay a premium for a term insurance plan for NRIs. The premium may depend on certain factors like the age of the applicant, their health conditions, their sum assured, and more. For instance, a premium for a 20-year-old will be less in comparison to a 30-year-old individual. 

Why Choose Indian Term Insurance Companies Over Foreign Term Insurance Providers? 

When thinking of purchasing term life insurance, it is wise to choose Indian life insurance companies over foreign ones. But, why? Read on for the following reasons to buy from the term insurance companies of India. 

• Many Insurance Providers: One of the biggest advantages of purchasing a term plan from India is that you get many options. As there are many insurance companies, you can compare different plans and buy the one that is most suitable for you. 
• Affordable Premium: Term insurance companies in India provide extensive coverage at  low premiums. However, when you purchase a term plan from foreign insurance companies, the premium rate will be comparatively higher. 
• Credibility: You can compare the authenticity and credibility of Indian insurance companies through the claim settlement ratio. A company with a high claim settlement ratio is more trustworthy than a low claim settlement ratio. 
• Online Process: You can buy a term insurance plan in India from the comfort of your home. Starting from a comparison of plans to the completion of the process, you can do everything online. 

Conclusion 

In conclusion, there are many insurance companies that provide term insurance for NRIs. You can compare numerous plans on the basis of coverage, sum assured, claim settlement ratio, and more to choose the suitable term plan according to your requirements. Moreover, you can contact the customer support team at InsuranceDekho to get a personalized life insurance recommendation.

Also read: What Types of Death Are Not Covered Under Life Insurance?