NRIs Buying Life Insurance in India: 5 Points to Keep in Mind

Life insurance policy is an insurance plan that will provide cover to the family or the nominee of the policy holder with financial support after the unfortunate and unforeseen demise of the insured which is in exchange for a certain amount of premium every year that the insured pays. Buy life insurance in India for NRIs to get benefits easily and with guaranteed no taxation. There are a plethora of NRI term insurance plans to choose from.

Every one looking to purchase a life insurance policy has their own personal and financial needs that need to be fulfilled, their savings, the budget which they can’t cross and different levels of risk appetite. So, you need to make the decision of which policy you want on your own and not depend on anyone else’s choice as they might have different requirements.

As a non – resident Indian, on whom their family is financially dependent, you would need to have a way to look out for your family after your unfortunate demise. In case you have family that is far away and is financially dependent on you, you need to get the life insurance policy designed for NRIs from India which will help you to take care of the policy as well as your family from your resident country. Make sure you compare all NRI term insurance plans before deciding.

5 point you need to remember!

  1. Figure out how you will pay the premiums

NRIs can pay for their life insurance policies in India from their resident country anywhere in the world with a few simple clicks, thanks to the technology. You don’t have to come to India to pay. The payments for the premiums of the life insurance policy can be done through online banking easily by just having a bank account in an authorized banking company. There are different modes by which you can pay the premiums online, they are as follows:

  • NRO bank account
  • NRE or FCNR bank account
  • Foreign currency remittance which will allow the NRIs to make payments without hassles.
  1. Am I eligible?

Well, you need to know if you are eligible for applying for a life insurance policy in India before you decide to apply for it. There are certain conditions for NRIs which they need to pass to be able to apply.

  • The applicant or the parent of the applicant or even the grand – parents of the applicant should have been a citizen of India under the constitution of India or the Citizenship Act of 1955.
  • The applicant needs to have had an Indian passport currently or at any point in their past.
  1. Taxation policies

There are various laws and regulations regarding taxation that an NRI needs to consider before they apply for a life insurance policy. Tax laws are different in different countries. Check for the implications of the tax in India as well as the country that you are residing in. Tax laws in India exempt taxation on life insurance policies. You need to check if the country that you reside in also exempts taxation on the life insurance policy that you are going to take up. There are 3 stages on which you could be taxed on a life insurance policy: maturity of the policy, accumulation as well as investment in the policy. Indian tax laws exempt tax from all the 3 levels.  Now, you need to check if your country also does and see if you will be able to pay the premiums as well as the taxes and if the return will benefit you enough and more than what you pay on premiums and taxes. Get the best NRI term insurance plans which allow extra benefits. NRI term insurance plans are available for purchase to NRIs.

  1. Insurance company

 Choosing the right insurance company to get your life insurance policy plan is probably the most important steps to consider before making any decision. Before choosing a company you need to check the details of it according to which you will base your choice on. Finding out about the claims settlement ratio will help you see if this company might cover your claims in the future. The company’s track record should be also seen and see if they have been stable and will be able to fulfil your claims. Choose wisely, benefit well! Buy life insurance in India by choosing the best.

  1. Disclose information properly

Stating the facts and disclosing information properly is the most important thing to do if you ever want your claim to get accepted. Make sure that you provide your insurer with all the information that they require correctly. Not doing so will make you end up in a sticky situation. Your claim might get rejected even if it was a small fact that you gave out wrong. Not giving out information life you are a smoker to escape that extra premium will ruin the chances of your family getting your death benefit.

Make sure that you follow all these points so that you get the best benefits when you buy life insurance in India as well as are in the running to get coverage in case you make a claim. Get NRI term insurance plans from India.

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