Every individual views life insurance as a significant investment, and for NRIs, life insurance is something they need to have due to a number of benefits. The demise of the breadwinner can put your family back home in a financial crisis. Hence, choosing life insurance for NRI will assist the family in your absence. Thus, it is always important for Indians to invest in life insurance, whether they live in or outside of their own country.
What is Life Insurance for NRI?
Life insurance for NRI is a policy designed to meet the specific needs of Non-Resident Indians (NRIs). These policies provide complete life insurance coverage and financial help to families in the event of death due to an accident or serious illness. At the same time, these policies give policyholders tax savings and premium payment flexibility. The NRI life insurance policies are provided in accordance with Indian regulations while also fulfilling the needs and wants of NRIs living overseas.
What are the features of Life Insurance for NRI?
NRI Life Insurance India offers the following features:
1. Comprehensive coverage at affordable premiums: The NRI investment in life insurance in India offers comprehensive coverage at reasonable rates. The premium is significantly lower than international life insurance policies.
2. Long-Term Coverage: Whole life policies offer longer-term coverage, up to 99/100 years. In the event that the policyholder dies, his or her loved ones are financially secured for the rest of their lives.
3. Coverage for terminal illness: Life insurance for NRI covers terminal illness. When a policyholder is diagnosed with a terminal condition, such as organ failure or late-stage cancer, the insurance company pays a portion or the entire sum assured in advance for the treatment, increasing the chances of survival.
4: Coverage for Accidental Death: The aforementioned clause offers an additional sum in addition to the death benefit if the policyholder dies in an accident during the policy’s term.
5. Premium Waiver and Critical Illness Coverage: If you are disabled and have NRI life insurance, you are eligible for a premium waiver as well as increased coverage against the critical illness rider included in the plan.
6: Benefits of Limited Pay: This feature allows you to pay the entire plan’s premium in a short period of time. This feature helps NRIs who plan to relocate to India.
7 Easy and Flexible Options: The online premium payment option allows you to pay the premiums for the NRI life insurance plan from anywhere and at any time, according to the payment option selected, such as monthly, quarterly, semi-annually, or annually.
Who is eligible to get Life Insurance Policies in India?
Apart from Indian citizens, NRIs, PIOs, and Foreign Nationals can purchase term insurance in India.
Non-Resident Indians (NRIs): As per the definition, NRIs are Indian citizens who have shifted to another country for work purposes and education.
Persons of Indian Origin (PIOs): Individuals whose ancestors were born and brought up in India but now they are no longer citizens of India.
Foreign Nationals: Individuals residing and holding citizenship in another country than India. As of now, Foreign nationals are not allowed to buy term insurance or any other life insurance policies from Indian insurers, but some insurance companies have exceptions in place. For example, a foreign national has significant tie-ups with India that might include business expansion or loan agreements between countries.
What are the Benefits of Life Insurance for NRI?
NRIs can take advantage of a variety of benefits through insurance products suited to their financial needs. These benefits include life insurance cover and making sure your family is safe and secure regardless of where you live. Here are the benefits that this insurance policy offers to NRIs:
- Comprehensive coverage: Life insurance for NRI in India provides full financial coverage to family and loved ones in the case of sudden death.
- Tax Benefits: Non-resident people can claim tax advantages on term insurance premiums and other rider products under Section 80C. Furthermore, the Income Tax Act of 1961, under Section 10 (10D), has specified explicit conditions under which maturity benefits are exempt from taxes.
- Flexibility: An NRI can benefit from flexible premium payment and tenure while purchasing a term insurance policy. Thus, NRIs can maintain financial stability and make informed decisions. Furthermore, an NRI can select plans based on their income and financial goals.
- Investment opportunities: Investment prospects in NRI life insurance offer an unusual combination of protection and security, making it a dependable choice for NRIs. Such type of insurance not only provides complete coverage but also helps build wealth over time. NRIs could look into many possibilities for investing, such as National Pension Scheme (NPS), real estate, mutual funds, Public Provident Fund (PPF), bonds, and others.
- Savings & Wealth Creation: When it comes to investing in life insurance, NRIs can make systematic savings over time. Some life insurance plans include significant bonuses, guaranteed returns on investment, and other extra benefits that may help an NRI achieve long-term financial goals.
- Critical illness coverage: Many insurance policies cover major illnesses, including cancer, heart disease, and others. As a result, NRIs and their family members receive financial assistance when diagnosed with certain serious illnesses. Furthermore, these policies ensure that families focus on treatment and recovery without any financial hardship.
So we are saying,
Life insurance for NRI protects policyholders and their families, regardless of where they live. Life insurance, whether it is term insurance or another type of insurance plan which provides global coverage and seamless protection, may protect NRIs and their families from a variety of financial challenges. Furthermore, with a wide range of options available to NRIs, these policies can be customized to meet a variety of financial objectives.
