Term insurance for NRIs- All you need to know

Term insurance for NRIs- All you need to know

Term insurance is one of the basic types of life insurance. The premiums are affordable, and it is perfect for those looking to secure short term life goals. Anyone can buy a term life insurance plan, and NRIs are no different.

Insurance companies offer a range of term plans for NRIs, including options for online term insurance for NRI. We answer some of the most asked questions about term insurance for NRIs.

Can NRIs buy Term life insurance?​

Yes, NRIs can buy term life insurance for NRI from insurance companies in India, as long as they satisfy a set of terms and conditions. Purchasing a term insurance plan in India for NRIs has been made easier by the Foreign Exchange Management Act.

What is the eligibility for an NRI to purchase a term insurance plan in India?​

There are certain conditions for a person to be considered an NRI, and be eligible to purchase a term insurance policy in India. Though the specific terms vary with the insurance company, the general requirements are still the same. Read on to know some of the eligibility criteria for NRIs-

• You must have lived outside the country for a specific period or as stipulated in the policy
• You must have possessed an Indian passport at some point in your life
• Your parents and/or grandparents must have been citizens of India
• You must have married an Indian citizen

The premiums for these NRI term insurance plans depend on the age of the applicant, the health condition, the features of the plan, and the sum assured, among others.

What documents do you need to submit for a term insurance policy for NRI in India?​

The documents that you need to submit for a term plan for NRI are as follows-

• Duly filled proposal form
• An attested copy of the passport of your country of residence
• Medical reports certifying your fitness or declaration of health issues if any
• Proof of age
• Proof of income

In addition to this, you might have to pay an amount that is equivalent to one premium of the policy.

Should NRIs purchase a term life insurance?​

Life insurance plans for NRIs offer a range of benefits. They can be used to protect their family and loved ones back in India in case of any eventuality. Additionally, the premiums of the online term insurance plan for NRI are affordable and offer a range of benefits. Hence, it is advisable to go for a term policy for NRIs.

When you are looking for term insurance plans in India, ensure that you go through the terms and conditions of the policy thoroughly. Also, there are many term insurance plans for NRIs in the market; make sure that you compare all their benefits and then buy the one that fits your requirements.

FAQs

Q 1. What are the eligibility criteria for NRIs to get term insurance?

Eligibility typically includes proof of staying outside India, Indian citizenship or heritage, and in some cases, being married to an Indian citizen. Exact criteria may vary across insurers.

Q 2. Is online term insurance available for NRIs?

Yes, many insurers now offer online term insurance plans for NRIs, allowing them to complete the application and verification process remotely.

Q 3. Why should NRIs consider buying term insurance from India?

Indian term plans are often more affordable and provide coverage for family members residing in India. They also offer flexible payment options and wide policy customizations.