Term insurance provides financial stability for families with increasing financial commitments, ensuring they can pursue their dreams without worrying about financial implications. It supports debt obligations and is available for both domestic and non-resident individuals.
Who is a Non-Resident Indian (NRI)?
A non-resident Indian (NRI) is an individual who has not resided in India for a certain number of months in a year, with additional conditions prescribed for their work arrangements.
Can NRIs purchase a term insurance policy?
NRIs can purchase a term insurance plan according to their needs. Their physical presence in India at the time of purchase is not required. Even in policies that require a medical examination, it is enough if the applicant gets a certified report from a qualified medical professional in the country where they reside at the time of application.
Why is Term Life insurance Important for NRIs?
NRIs often earn a living abroad, covering expenses and saving for future needs. However, if a family member dies, the financial burden and emotional trauma can be severe. To protect the family, it's recommended to purchase life insurance in India.
To protect the NRI family from financial backlash and emotional trauma, it is recommended to purchase life insurance cover in India for the primary earning member.
How Can NRIs Continue Their Insurance Coverage?
Indians question insurance coverage post-non-residential status, primarily regarding term insurance policies. The answer is that they will continue to function as long as premiums are paid consistently.
Term life insurance policies offer multiple online payment options, ensuring coverage even if the policyholder moves abroad for work.
Like: Debitcard credit card, Gpay, NEFT, ETC
How Can NRIs Pay the Premium on Their Term Insurance Policies?
It is always better to complete term insurance transactions online. With the widespread availability of digital banking channels, NRIs can either pay through international credit/debit cards or use the funds in their NRO account to pay the premium on the due dates. The NRO account is designated in rupees. You can also pay the premium as a lump sum if allowed under the policy terms.
What documents are Required to be Submitted by an NRI Purchasing a Term Plan in India?Â
Term insurance in India for NRIs can be easily purchased from the insurance company’s website or an insurance aggregator. The following documents should be submitted while purchasing the policy:Â
Attested copy of the passport
Proposal form duly filled up
Identity proof and address proof (local and overseas)
Copy of the income or earnings statement
Medical report certified by a qualified practitioner if a health check-up is required Â
Along with these documents, the first premium on the policy should be remitted to the company. Apart from these documents, the insurer might also need some specific documents.
What are the Salient Points of Term Plans Issued in India to NRIs?Â
Term insurance is crucial for overseas workers to protect their families. Online purchasing is convenient for NRIs during holidays or before moving abroad. Important considerations include coverage, coverage type, and coverage duration.
Country of residence: Insurance companies offer coverage in some countries, but exclude others. NRIs must confirm if their chosen insurance company offers coverage in their country of residence.
Obligation to disclose full medical history: NRI applicants must disclose their lifestyle habits, pre-existing illnesses, and other health information to avoid policy invalidation if misrepresentation or suppression is discovered later.
Duty to notify transfer abroad: Policyholders moving to a foreign country must inform insurance companies to ensure coverage availability or modification. Â
In conclusion, The text emphasizes the importance of term insurance for non-resident Indians (NRIs) to protect their families from financial distress, especially in distant locations, due to the need for support.
Parag Nesarikar
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