Term Insurance for NRIs Online in India

People often move abroad for career opportunities to improve their overall financial well-being. However, living in a foreign country comes with its fair share of risk and can leave your family in a big fix in case of an unfortunate incident, and you happen to be the only earning member. 

Thus, having term insurance for NRIs is an absolute must to ensure that your family gets financial protection even in such unforeseen situations. 

Let’s dive deeper!

Term insurance plans for NRIs provide Non-Resident Indians (NRIs), Persons of Indian Origin (PIO), and Overseas Citizens of India (OCI) with the opportunity to financially protect their loved ones through a life insurance plan.

This coverage is available worldwide and enables the nominees to get a death benefit in the form of a lump sum payment, regular income or both, which enables them to cover their expenses abroad, relocate back to India, pay off debt, and more.

Yes, NRIs can purchase any term insurance plan in India that aligns with their requirements. They have many options for securing their families with a term plan.

NRIs can choose a pure term insurance plan. This plan provides a death benefit in case of the holder’s demise within the policy tenure but does not offer maturity benefits.

They can also choose a term plan with a return-of-premium rider. Such policies provide a death benefit in case of the holder’s demise and a maturity benefit equal to the sum total of all the premiums paid if the insured individual survives the policy tenure.

What NRIs Should Keep in Mind Before Buying Term Insurance in India?

Now, a medical check-up is mandatory to buy term insurance for NRIs. However, the applicant does not have to be present in India to purchase the policy and attend to the health check-up requirements. They can easily fulfil such obligations from their country of residence via tele or video medical facilities offered by their preferred insurance providers.

Furthermore, to buy a term plan in India, NRI applicants need to be verified via an Indian diplomat and a notary before they can proceed with the purchase.

Choosing A Policy

Selecting the Sum Assured and Policy Term

Next, they need to choose a sum assured that is enough to cover their family’s future financial needs, like household costs, relocation expenses, medical emergencies, etc.

They can also select a policy term that best aligns with their needs. The tenure usually ranges from 5 years to 99 years and tends to differ across insurers and policy types. In this regard, a longer policy tenure equals more uninterrupted life cover protection for the insured individual’s loved ones.

Setting the Premium Terms and Payment Methods

After this, applicants must select the premium term, frequency, and mode. They also need to ensure the premium amount is reasonable, enabling them to make timely payments without any financial burden.

Coming to premium payments, NRIs, OCIs, and PIOs can use the Internet banking facility in their foreign bank accounts, Non-Resident Ordinary (NRO), Non-Resident External (NRE) and Foreign Currency Non-Resident (FCNR) Accounts.

Availing Riders and Add-ons

Submitting Documents

NRI applicants must also submit all the required documents when purchasing a term plan. Thus, they should have a clear idea of what’s required and keep them handy to ensure a smooth application filing experience.

After all the documents are verified, the insurance company issues the policy, and the applicant's life coverage becomes active.

Availability of Numerous Insurers in India

Pre-Approved Cover

Global Coverage with 24x7 Claim Assistance

Tele/Video Medical Check-ups

Individuals can easily buy term insurance for NRIs in India online by opting for a tele/video medical check-up in their country of residence.

This not only makes it easier for the insurer to comply with their underwriting requirements but also makes it convenient for the applicant as they do not have to travel to India just for the sake of the medical test.

Claim Settlement Ratio

A claim settlement ratio represents the percentage of claims paid by the insurance company to the number of outstanding claims within a financial year. In FY 2022-23, the overall claim settlement ratio in the Indian insurance industry was 98.64%.

The higher the claim settlement ratio, the greater the chance of your policy claim being accepted by the insurer.

Easy Claim Settlement Process

Lower Premium Rates

Term insurance premiums in India are approximately 40% to 50% lower than that of international term life insurance policies available in developed nations. For instance, the premium rates for a ₹2 Crore term insurance policy in India start from as low as ₹820 per month*.

*Subject to change across insurers and based on parameters like applicant’s age, health stats, etc.

Options for Special Exit

GST Waiver

Additional Discount on Annual Premium Payments

Waiver of Premiums on Disability

Accidental Death Benefits

Critical Illnesses Coverage

Terminal Illness Benefits

To purchase a term insurance plan for NRIs follow the steps given below:

1. Visit your preferred insurer’s website and click ‘Term Insurance for NRIs’. 

2. Provide the required information, such as name, gender, country of residence, etc. 

3. Enter your smoking and tobacco chewing habits and other relevant details. 

4. Press ‘View Plans’ and find a policy that best suits your needs. 

5. Pay the premium amount. 

Now, when choosing the sum assured for your term insurance for NRIs, it is customary to consider inflation. By doing so, you can ensure that even in case of a significant price rise in the upcoming years, your loved ones will have enough to cater to their expenses stress-free. You can also use a term insurance calculator to determine the appropriate coverage amount. 
 

If you're an NRI looking to safeguard your family's future, exploring 1 crore term insurance plans can provide substantial coverage and peace of mind. Also, make sure to read the policy’s terms and conditions carefully. This will help you know what is not covered, so there are no surprises later.