I am 34 years and reside in Bengaluru. I have availed a term life insurance plan with a sum assured of INR 1 Crore. I regularly travel out of India on work. Sometimes I am out of India even for 2 months. A relative told me that if I die abroad, the life insurer will not pay my wife claims. Is this true? If my wife’s claim is not going to be settled, then why am I paying the premium?
Life insurance plans issued in India, have Worldwide coverage. If you (policyholder) die abroad, your nominee (wife) gets the death benefit. The death benefit is payable only in India and in Indian rupees. Your wife will have to submit documents like claim form, death certificate and certificates from authorities, with the insurer in India. You have a facility in the policy service form where you have to mention that you are travelling abroad. If you frequently travel to countries like Pakistan, Afghanistan, Burma, Somalia and some other countries deemed unsafe/risky, then the insurer will decline such a proposal.