Term Insurance Validity Outside India - How Does It Work, Impact & Conditions

Is Term Insurance Valid Outside India?

How Term Insurance Works for People Moving Abroad?

What’s the Impact on Validity of Term Insurance for People Moving to Another Country?

What Are the Conditions That Impact Term Insurance for People Moving Abroad India?

What Is the Process of Getting Term Insurance When Moving Outside India?

What Are the Benefits of Term Insurance for Indians Living Abroad?

Things to Consider for People Moving Abroad before Buying Term Insurance in India?

FAQs about Term insurance Validity Outside India

What will happen if a person becomes an NRI after purchasing term insurance?

If you already have an existing plan, you have to inform your insurance provider about your moving abroad and ask if they can keep your plan active. You will also have to inform them about the country to where you are moving. Most insurers will let you continue with the plan and avail of the benefits.

What are the documents required for buying term insurance for people moving outside India?

Usually, the insurers ask for documents such as application forms, copies of the applicant's passport, proof of income, age proof, copies of medical records, proof of residence, nominee details etc. from NRI applicants. However, the document requirements may differ for different providers.

Is term insurance valid outside India if the policyholder defaults on the premiums?

Most insurance providers keep the term insurance policy active for only as long as you make the payments on time. This applies to Indians as well as people who have moved to foreign countries.

Can NRIs change the frequency of premium payments for term insurance after buying the policy?

In most cases, insurers allow you to change how often you want to pay the premiums. However, you may have to wait till the annual renewal of your policy to make the switch. Make sure to confirm about the requirements of your insurance provider before you opt for the change in payment frequency.

Can I continue paying my term insurance premiums in Indian currency after moving abroad?

Yes, you can keep paying your term insurance premiums in Indian currency after moving abroad. Just use your NRO/NRE bank account and make sure to update your insurer with your new contact details.

Is it necessary to travel to India for medical tests when buying term insurance as an NRI?

No, you don't need to travel to India for medical tests when buying term insurance as an NRI. Many insurers let you do telemedical check-ups from your home country. However, you might have to pay for tests done abroad. Buying the policy in India can save these costs since insurers usually cover medical check-up expenses.

Will my term insurance cover my medical treatment if I fall ill abroad?

Term insurance mainly provides a death benefit to your beneficiaries and doesn't usually cover medical treatments or hospital costs. However, it remains valid outside India based on the terms of your policy. For medical coverage abroad, consider getting health insurance with international coverage or short-term travel insurance to handle medical expenses and emergencies, depending upon if you’re living abroad and just travelling.

How do I update my contact information with my insurer after moving abroad?


To update your contact information with your insurer after moving abroad, you can follow these steps:

  1. Contact your insurer: Reach out to them via email, phone, or their online portal.
  2. Provide documents: Submit proof of your new overseas address, a valid ID (like a passport), and any required forms.
  3. Confirm update: Check with your insurer to make sure they have updated your information correctly.

Are there any restrictions on the sum assured for NRIs buying term insurance in India?

No, there are no specific limits on the sum assured for NRIs buying term insurance in India. They can choose the sum assured based on their needs and eligibility.

What happens if I move to a country that my insurer does not cover?

If you move to a country that your insurer doesn't cover, your policy might become invalid, meaning your beneficiaries could lose coverage. Contact your insurer promptly to explore options like adjusting your policy, transferring it, or finding new coverage options for your new location.

How does currency exchange impact premium payments for NRIs?


Currency exchange can impact your insurance premiums in several ways:

  • Exchange Rate Changes: Fluctuations in the foreign currency compared to the Indian Rupee (INR) can increase or decrease the amount you pay.
  • Conversion Fees: Banks or financial institutions may charge fees to convert your foreign currency to INR, potentially increasing the cost of premiums.
  • Payment Methods: NRIs typically use NRE or NRO accounts to pay premiums. Insurers may accept direct payments in foreign currency, converting them to INR at additional costs.

Can I add a rider to my existing term insurance policy after moving abroad?

Yes, you can usually add a rider to your term insurance policy after moving abroad. Contact your insurer to confirm if they allow it for NRIs. You might need to provide updated medical reports and proof of your new residency. Adding a rider will likely increase your premium, and your insurer will inform you of the new cost. Common riders include critical illness, accidental death, waiver of premium, and disability benefits. Always check with your insurer for specific requirements and details.

Can I get a refund on premiums if I decide to cancel my term insurance policy from abroad?

You can get a refund on term insurance premiums under certain conditions. If you cancel your policy during the free look period (typically 15-30 days after buying), you'll receive a full refund of the premiums paid. After this period, you might still get a refund for the unused part of your premiums, but deductions may apply.

Will my term insurance policy be affected if I change my job and move to a different country?

Changing jobs or moving to another country can affect your term insurance policy. If you bought the policy while living in India or from another country, your insurer might need to update your policy to keep it active. This helps avoid issues when making a claim and ensures your policy remains valid in your new situation.Thus it's important to let your insurer know about these changes right away.

What are the riders available for NRI term insurance?


Here are some common riders available for NRI Term Insurance:

  • Accidental Death Benefits: Provides an additional sum assured in the event of accidental death.
  • Terminal Illness Benefits: Provides a lump sum payment if diagnosed with a terminal illness.
  • Critical Illness Insurance: Provides coverage for specific critical illnesses, assisting with medical bills and treatment costs.
  • Waiver of Premiums on Disability: If the policyholder becomes permanently disabled due to an accident, the policy will continue without payment.

How do I claim the term insurance benefits if the policyholder passes away abroad?

To claim term insurance benefits if the policyholder passes away abroad, promptly notify the insurer and submit essential documents, including the death certificate, policy papers, completed claim form, and proof of identity. Depending on the insurer's requirements, additional documents such as an employer certificate or verification by the Indian Embassy may also be necessary. The insurer will process and verify the claim and, upon approval, transfer the benefit to the nominee's bank account in Indian Rupees or as per applicable regulations.

Does my term insurance cover death due to natural disasters or pandemics abroad?

Term insurance usually covers deaths from natural causes, including disasters and pandemics. However, it's important to check your policy for the specific details. While many standard policies cover deaths from earthquakes, tsunamis, and pandemics like COVID-19, it's best to confirm this with your insurer. Some plans and riders might offer extra coverage for these events. Always read your policy documents carefully and contact your insurer to understand the exact coverage and conditions.

Is it mandatory for NRIs to have an Indian bank account to pay term insurance premiums?

NRIs do not need an Indian bank account to pay term insurance premiums. Payment options include online transactions with international credit/debit cards, internet banking through NRE/NRO accounts, SWIFT transfers from foreign accounts, and cheque deposits from NRE, NRO, or FCNR accounts. It's important to note that available payment methods may vary among insurers.

Will my term insurance premiums increase if I move to a high-risk country?

Moving to a high-risk country might increase your term insurance premiums. This is because of factors like crime rates, political instability, natural disasters, and health risks. Make sure to tell your insurer about your new location to keep your coverage. Talking to your insurer or an insurance advisor can help you understand any changes needed for your policy.