Term insurance is pure risk cover. It is the most basic form of life insurance. Under a term insurance policy, you pay periodic premiums to keep the policy active. If the insured dies within the term of the policy, then the insurer pays out death benefit (sum assured) to the nominees. The policyholder gets nothing on surviving the term of the policy. Most life insurance companies offer term insurance policies.
It’s extremely important for the breadwinner of each family to avail a term insurance policy to secure family’s future. You can provide for your family even after death. You leave behind a legacy. Term insurance policies are available at affordable premiums. It is the most economical way of securing the future of dependants.
If you think NRIs can’t avail term insurance policies in India, then you are wrong. Term insurance policies can be designed specifically to suit the requirements of NRIs.
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You (considering you as an NRI) can avail a term life insurance plan, when you are on a visit to India, or from the country where you currently reside.
SEE ALSO: What is a Term Insurance Plan?
If you avail term insurance plans abroad, then the sum assured would vary from Rs 2 Lakhs to Rs 1 Crore. If you want to avail term life policies in India, then you have to undergo certain medical tests and your sum assured would depend on that.
Premiums payable towards term life policies is not fixed and varies based on a lot of parameters like age, sum assured, smoking and drinking habits. Generally, NRIs and resident Indians would pay pretty much the same amount as premiums towards term life policies. Insurers might charge a higher premium if you are living in a country where the risk is high.
The documents required for NRIs to buy a term insurance policy are:
The insurer may ask for additional documents, if you decide to avail term insurance from an insurer in the home country. You might have to appear for medical tests in the home country, and bear medical examination expenses out of pocket.
Life insurers accept payments made through various online methods, as mentioned below:
When the policy matures, NRIs have the option of renewing the plan. You might be asked to undergo certain medical tests and you should have paid your premiums on time in order to be eligible for renewal.
If the insured dies within the term of the policy, then the sum assured is paid to the nominee or beneficiary in their NRE account. The sum assured is repatriable, corresponding to the premiums paid in foreign currency vis-à-vis total premium.
If the premiums are fully paid in foreign currency through NRE/FCNR accounts, then the death benefit, which is sum assured, is fully repatriable. If the premiums are paid in Indian Rupees through NRO accounts, then the sum assured is considered as an income in India and will not be fully repatriable.
SEE ALSO: Term Life Insurance - A Necessity Or A Fad?
You relocate to a foreign country in the hope of enjoying a better lifestyle. Living abroad is a costly affair. Your children’s education abroad would cost a lot more than in India. You would have relocated to a foreign country to earn more, and come back to India in a much better financial state. You would have planned to build a house back in India. But, on an unexpected demise, the future of your dependants is in jeopardy. All their dreams would be shattered. Availing a right term life policy would provide enough for your dependants to continue leading their lives in much the same way. Your children can continue their education without any hindrances.
Term insurance is gaining popularity among NRIs. You can avail the right term life policy and protect the interests of dependants even if you’re not around.
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