Term Insurance Options for NRIs

Those who have gone beyond the national boundaries to earn a better life for their families deserve to have a financially secure life. With proper planning and a proactive approach, you can ensure that your loved ones do not suffer during tough times. In this regard, you need to have adequate knowledge about term insurance options as an NRI. Continue reading to know more.

What is Term Life Insurance

As the name suggests, term life insurance is an insurance policy that offers coverage for a fixed term or period. In case of sudden demise of the policyholder during the tenure, the nominees get a lump sum payout. It helps the nominee and the family manage unexpected expenses in the absence of the primary breadwinner.

Additionally, the term life insurance is often more affordable than other types of life insurance. Low premiums and high coverage make this plan fascinating and valuable. A term insurance policy is designed to offer financial protection to your loved ones in case of an unfortunate event without breaking the bank.

Why Term Life Insurance is Important for NRIs

Staying away from home is already a challenge for you as well as your family. At this cost, you would definitely want to secure their future. If you are an NRI earning abroad, it’s crucial to maintain a strong financial safety net for your loved ones in India. Buying a term life insurance policy is a smart and effective way to protect the family in your absence.

Besides this, reliable insurance companies like Axis Max Life Insurance can offer customised plans for term life insurance for NRIs to suit individual needs. You will get flexible coverage amounts and policy durations.

How Do Term Insurance Plans for NRI Work?

Term life insurance for NRIs is almost the same as for Indian residents, except for a few differences. First, they have to undergo a mandatory health checkup before buying the policy. It can happen in India as well as in their country of residence. NRIs can choose the sum assured and policy tenure, just like residents.

They need to check the following factors:

• The sum assured
• Policy term
• The term of the premium
• Frequency of the premium
• Riders for added protection (if they want)
• Global Coverage: Many life insurers offer term life insurance plans that offer worldwide protection so that NRIs are covered no matter which corner of the globe they live in. This indeed helps those who keep shifting between countries for work or even personal reasons.
  
• Easy Online Process: NRIs can easily purchase term life insurance policies online. Most insurance providers have streamlined their application processes, allowing you to choose your policy, pay premiums, and manage your coverage anywhere in the world.
  
• Customised Policy Tenure: Term insurance policies for NRIs can be tailored to fit your specific needs. You can opt for a policy that aligns with your financial goals and the duration you wish to cover. Whether you need a short-term policy or a longer-term one, there are plenty of options to choose from.
  
• Affordable Premiums: Term life insurance is known for its low premiums. For NRIs, this affordability makes it an attractive option compared to other life insurance products. You can secure comprehensive coverage at a fraction of the cost without compromising on the protection for your family.
  
• Tax Benefits: NRIs can get tax deductions on premiums paid for term life insurance under Section 80C of the Income Tax Act in India. Additionally, the death benefit paid to the nominee is tax-free under Section 10(10D), offering financial relief.

Term Life Insurance for NRIs: Key Features and Benefits

Things to Consider When Choosing Term Life Insurance

There are several options available in the market; therefore, choosing the best one can be tricky. If you get acquainted with a few important factors, you can make an informed decision. Here are some points that you should consider before deciding on a policy:

• Coverage amount
• Policy duration or term
• Riders and add-ons
• Mode of payment (for premium)
• Claim settlement ratio
• Review of previous policyholders

Conclusion

Whether you reside in India or work abroad, securing your family and loved ones financially is important. Opting for a term life insurance plan for NRIs is an effective way to secure the financial future of your loved ones. Assess your needs carefully and choose the right policy for you.

Compare different insurance companies based on their coverage amount, policy term, claim settlement, and their prominent features beforehand.

(No Hans India Journalist was involved in creation of this content)