One of the most preferred insurance plans in the country is the term insurance plan. Term life insurance plans are quite beneficial, as they provide a high sum assured at affordable premiums. Term plans ensure that your loved ones will be financially protected even in your absence. Along with Indian citizens, Non-Resident Indians (NRIs) are also eligible for purchasing a term insurance plan from any insurer in the country.
Term life insurance plans for NRIs
NRIs can get a term life insurance plan from any of the insurance companies in India. However, they will have to meet all terms and conditions set by the insurance company. With the Foreign Exchange Management Act, it has become easy for NRIs to purchase a term insurance plan in the country.
Eligibility criteria for an NRI to buy a term plan in India
If an NRI wishes to purchase a term plan, they will have to meet specific conditions to be considered an NRI and are eligible to get the plan. While the specific terms and conditions may vary for different insurance companies, the basic requirements are the same for all insurance companies. The eligibility criteria that NRIs will have to meet for purchasing a term insurance plan in India are:
- You must have married a citizen from India.
- You should have lived outside the country for a specific period or as mentioned in the policy.
- You must have held a valid Indian passport at some point in your life.
- You must have grandparents or parents who have been citizens of India.
The term insurance premium for NRIs will depend on the applicant’s age, lifestyle, health condition, features of the term plan they chose, and the sum assured.
Documents NRIs need for a term insurance policy in India
When an NRI purchases a term plan, they will have to submit a set of documents to the insurance company. The documents they’ll need for a term plan include:
- Filled proposal form.
- Attested copy of the applicant’s passport of their country of residence.
- Medical reports that highlight fitness or declaration form of any health issues.
- Age proof.
- Income proof.
Along with these documents, some insurance companies also ask the applicants to pay an amount equal to one premium of the term plan.
Is it a good plan for NRIs to buy term life insurance?
With a term plan, NRIs will have access to a range of benefits. The NRIs can use these term plans to ensure their families and loved ones residing in India get financial protection when they’re not around anymore. Along with this, the premiums that NRIs will have to pay for the term insurance plan is quite affordable and provides a wide range of features and benefits.
Therefore, NRIs should go for term policies.
In conclusion
A term insurance plan is one of the best ways to ensure your loved ones will be financially stable when you’re not around anymore. These plans are designed to benefit the policyholder, no matter if they’re citizens residing in India or NRIs living far away from home. If you’re an NRI looking for a term insurance plan, you must research the different plans available in the market carefully. Comparing different term insurance plans online will help you choose one of the best term life insurances in the country and secure the financial future of your loved ones.
