What Is The Scope Of Term Insurance In India For An NRI?
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Life is full of bitter-sweet surprises, and everyone must be prepared to deal with them at all times. Term insurance is one approach to safeguard the wealth and future of your loved ones. It not only protects your financial assets but also ensures a stress-free future. This protection is available to everyone, even NRIs (Non-Resident Indians). Several insurance companies are now offering a variety of customized alternatives to entice NRI customers with low premiums.
What is the Eligibility Criteria for an NRI Applicant?
If you are an NRI (non-resident Indian) or a PIO (person of Indian origin), you can get life insurance in India. It's important to remember two things in this situation.
While an NRI must have a valid Indian passport in order to get life insurance in India, PIOs can do so by presenting valid documentation proof of their Indian ancestry.
When seeking life insurance in India, an NRI must not have registered for citizenship in another nation.
Must Read: Am I Eligible To Purchase A Term Insurance Plan?
What are the Documents That Are Required to Purchase the Policy?
The following documents are necessary for NRIs to purchase the policy.
- An attested copy of their passport
- Form for submitting a proposal/application
- Documents describing the medical conditions/reports
- Proofs of age
- Proofs of income
How Can An NRI Applicant Get a Term Insurance Plan?
An NRI can easily get a good term insurance plan in one of two ways. The coverage can be purchased while the individual is in India. The process is straightforward and follows the same steps as it would for an Indian citizen. Alternatively, an NRI can acquire an insurance policy through his or her present domicile. This can be done via mail order, but it necessitates thorough verification. Indian embassy officials and a notary can do that).
What is the Medical Examination Procedure For an NRI Applicant?
An NRI will have to pass a medical examination, just like the local Indians, before purchasing a life insurance policy. To do so, use one of the methods listed below.
- He/she can travel to India for a medical examination.
- He/she can have the tests done at any of the insurer's partner centres in the country where you live.
- He/she can complete their medical examination in their country of residence and email the results to the insurer in India.
How Can an NRI Policyholder Pay Policy Premiums?
You can choose a payment method that is convenient for you to avoid missing a premium and incurring a penalty on your insurance. You have the option of paying the premium in one of two ways.
If your policy is denominated in a foreign currency, you can pay it with your NRE/FCNR account.
You can utilise your NRO account to pay for rupee-denominated policies.
If an NRI policyholder misses a premium payment, they will be given a grace period. If you have missed a premium payment for any reason, you can make up the difference within the grace period.
Endnotes
NRIs and PIOs might use a life insurance policy to provide additional security for their family members in India. They can buy a life insurance policy in India based on their budget and requirements, taking into account the variables listed above as well as your financial condition.
Also Read: How Can Increasing Term Insurance Be Beneficial?
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.
