Term Insurance For NRI

Term Insurance for NRIs in India

Term insurance for NRIs is a pure life insurance plan that lets Non-Resident Indians secure their family with a death benefit, regardless of the country they live in. If the policyholder passes away during the policy term, the insurer pays the sum assured, often ₹1 crore or more, to the nominee in India, in Indian Rupees. NRIs in the USA, UK, UAE, Canada, or elsewhere can buy these plans online from IRDAI-approved insurers, subject to FEMA and RBI guidelines, often at lower premiums than similar coverage abroad.

Key Benefits of NRI Term Insurance Plans

These plans offer a range of benefits, including:

• Multiple payout options
• Flexible premium payment modes
• Longer coverage
• Choice of sum assured
• Limited pay benefits
• Easy documentation

Key Takeaways

• You can buy term insurance for an NRI from any country in the world.
• NRI policyholders can choose their sum assured, policy tenure, and premium payment tenure.
• Only telemedicals are required to buy an NRI term policy.
• You can avail of rider benefits with term insurance for NRIs.

List of Top Term Insurance Plans for NRIs

Here are some of the best term insurance plans in India for NRIs:

* The above premiums are for a 30-year-old male for a sum assured of Rs 1 crore, premium payment tenure of 20 years, and policy tenure of 20 years, residing in the United Kingdom.

How Does Term Insurance in India for NRIs Work?

Let’s understand how term insurance in India for NRIs works with a simple premium illustration.

Premium Illustration: Mr. Ramesh's Case

Problem: Mr. Ramesh, who is living in the United Kingdom, is looking for a term plan that offers financial safety to his family living in India in case of his unfortunate demise due to any reason.

Solution: He visited PolicyX.com and contacted one of our agents who suggested he buy Term Insurance for NRIs to safeguard his family against uncertainties. He chose the Max Life Smart Secure Plus Plan.

Let’s understand how the Max Life Smart Secure Plus Plan works for him with a premium illustration table.

In the case of Mr. Ramesh’s demise during the policy tenure, his family would get death benefits of Rs 1 crore.

Types of Term Insurance Plans Available for NRIs

Here are the various types of term insurance plans available for NRIs. Let’s understand these types of plans in detail:

Features of Term Insurance for NRIs

Here are the key features of Term Insurance for NRIs:

• Choose Life Cover as Per Your Needs

  You can choose your sum assured as per your requirement. Everyone has different income and lifestyle expenditures, so one can choose a term plan for their family keeping this in mind.

• Easy Documentation Process

  The overall documentation process of buying Term Insurance for NRIs is easy and hassle-free. You can buy it from anywhere.

• Minimal Telemedical Tests Required

  To buy term insurance for NRIs in India, the policyholder has to undergo some basic telemedical tests, after which the policy is issued to them.

• Customization Options

  Policyholders buying an NRI term plan can customize it as per their requirements in terms of policy tenure, premium payment tenure, and sum assured.

• Choose Your Rider Options

  You can choose additional rider options with your term plans as per your requirements. There are multiple rider options available, including critical illness rider, waiver of premium rider, accidental rider, etc.

Factors to Consider Before Buying NRI Term Insurance in India

You have to consider certain factors before buying NRI Term Insurance in India:

• You must be a graduate to be eligible to buy Term Insurance for NRIs in India.
• COVID-19 vaccination is recommended but not mandatory.
• You should have an annual income greater than Rs 10 lakhs.
• Medical expenses are either borne by the insurer or the policyholder themselves.
• Medical documentation will be done through a video call.
• An 18% GST waiver would be applicable based on the prevailing tax laws of your country.

Benefits of Buying a Term Policy for NRIs

There are several benefits to buying NRI term insurance. Let’s see a few of them.

• Financial Protection for Your Family: You can offer financial protection to your family even when you are not with them by purchasing an NRI term insurance policy.
• Multiple Premium Payment Options: You can choose to pay your premium as per your wish. There are multiple premium payment options available, including regular pay, limited pay, etc.
• Choose Your Death Payout Frequency: You can choose how the death benefits are paid to your loved ones. There are multiple death benefit payout options available, including lump sum, monthly income, or a combination of both.
• Long-Term Coverage Options: Term policy for NRIs allows policyholders to choose long coverage options (99/100 years) as per their requirements.
• Benefits of the Limited Pay Premium Payment Option: Policyholders can enjoy limited pay benefits as they have to pay premiums for a limited time, along with the applicable discounts.

Documents Required by NRIs to Purchase Term Insurance

Here is the list of documents that an NRI requires to buy term insurance in India:

• Policyholder’s photograph
• Front and back side photos of your passport
• Employment ID proof if you are salaried abroad
• Valid visa copy
• Last entry/exit stamp
• Foreign address proof
• Last 6 months bank statement / Last 3 months salary slip if salaried
• Bank details of your nominee

How Can an NRI Buy Term Insurance in India?

NRIs can buy term insurance plans either from PolicyX.com or by visiting the official website of the particular insurer.

Buying from PolicyX.com

1. Fill out the form at the top of this page with the necessary details.
2. Select your income and city. Click on 'Proceed'.
3. Update your education and occupation details.
4. Choose your preferred plan and click on 'Buy this plan'.
5. Select the policy term, premium period, and riders (if required), and then proceed to pay.

* Once the premium is paid, you will get the receipt on your registered email address.

Buying from the Insurer’s Website

You can visit the official website of the insurers who provide term insurance for NRIs and fill in your details such as residing country, annual income, lifestyle habits, educational details, sum assured, policy tenure, premium payment tenure, etc., and pay the premiums.

Conclusion

Term Insurance for NRIs is an ideal option for individuals living outside India to offer financial protection to their loved ones. You can choose your sum assured, policy term, premium payment term, and frequency as per your requirements. We have provided you with a list of the best term insurance for NRIs to choose from, and you can consider them for buying.

If you are still confused about which term plan for NRI is right for you, then you can contact us at PolicyX.com. One of our insurance representatives will contact you shortly and help you choose a plan that best fits your requirements.