Life is extremely uncertain to say the least. Hence, everybody should make sure they are prepared for every possibility in life. This means securing your finances. The more financially secure you are, the safer your family is. However, since life is unpredictable and anything can happen at any time, you need to take some measures that make sure your family doesn’t have to depend on you for their financial security. The perfect way to do this is to buy a term insurance plan. Not only does it offer a huge amount of money to your family in the case of your death, but also gives you the sense that your family will be well taken care of after you’re gone. This is the reason that buying term insurance is recommended for everyone.
Can an NRI Buy a Term Insurance Plan in India?
NRIs or Non-resident Indians, are a group of people that have Indian heritage but reside outside India. This could mean being born in India and then moving to a different country.
NRIs are a huge part of many communities globally. Moreover, they are a large part of certain economies. Hence, being financially secure is extremely important for NRIs. And, when it comes to financial security, there is hardly any option better than term insurance. Hence, the big question needs answering – Can NRIs buy term insurance in India? The simple answer is yes.
An NRI can easily select a suitable term insurance policy and buy it to secure his/her family’s future. There are two ways they can purchase a policy. The first option is when the NRI is visiting India. They can do it through whatever channel is available to them. The other option is buying the term policy from an Indian insurance provider through online means. You can use the insurance provider’s website to purchase the policy.
Eligibility for NRIs to Buy Term Insurance in India
While it is allowed for NRIs to buy term insurance in India, there are certain eligibility criteria they have to fulfill as well. Some of it is standard criteria that would apply to any buyer. However, some of it could also be uniquely related to NRIs. For example, the buyer should be over 18 years of age and should have an Indian citizenship.
NRIs are offered term insurance plans with highly flexible terms and conditions. Moreover, the sum assured for the policy is usually very high as well. While the exact amount depends on your purchase, the sum assured can range between ₹2 Lacs to ₹1 Crore. The premium that is payable for a policy depends on the coverage selected and the insurance provider. However, the rates for term insurance are much lower than other insurance products anyway. The exact term insurance premium would depend on factors like terms of the policy, frequency of premium payments, age, health conditions etc. The duration of the term policy coverage is known as the term. You can select as the term of your policy from, various tenure options. This range can be between 5 years to 40 years.
To purchase a term insurance policy in India, an NRI should be above the age of 18. Moreover, many insurance providers have an upper age limit of 55 to 60 years of age. This means that any buyer beyond this age will be rejected for term insurance coverage.
Documents Required
Any NRI can approach any insurance provider in the country to buy a term policy. In your initial talks, the insurance provider will surely ask for some important information from you. Based on this information, they will decide on the right amount of term insurance coverage and premium for you. Hence, while buying the policy you have to provide some documents to the insurance provider. Here are some of the documents that you will need to provide for buying a term policy in India:
- Attested copy of passport
- Application form
- Medical test reports and records
- Age proof
- Income proof
