If you are an NRI (Non-resident Indian) living abroad for work or business, you may want to ensure the safety of your family in India, right? You may be looking for an affordable insurance plan that assures financial safety to your family. But sitting in a faraway land, you may have several questions about buying an insurance policy in India.
But don’t worry, we will try to answer some of the most common queries that NRIs have.
Can an NRI purchase a term plan in India?
Yes, as per the FEMA – Foreign Exchange Management Act directives all Non-resident Indians and PIO (Person of Indian Origin) can purchase a term plan in India provided you meet the specific requirements of the insurance company.
Today, many insurance companies in India offer a variety of term plans that are specially tailored to meet the insurance needs of the NRIs and their families residing in India.
Is it mandatory for the NRIs to be present in India for purchasing term insurance?
No, it is not compulsory for the NRIs to be present in India while buying term insurance. You can easily purchase the term plan of your choice and any from any insurance company you want by going the online route.
When you buy a term policy online, you can easily compare the different plans, know about their features and benefits, and choose the one that best suits your needs. Also, the process of buying a policy online is simple. You must submit the application online and comply with the documentation and get the insurance cover instantly.
While it is not necessary, being present in India at the time of buying an insurance policy is beneficial. This way you can undergo a medical test and make a more informed buying decision.
Will the country of my residence have any effect on term insurance application?
Yes, the insurance companies in India pay close attention to your current location or the country of residence. If you are in a country that is prone to civil war, military issues or has an unstable government, you may be labelled as a high-risk insurance buyer.
In such a situation chances are high that your insurance application will get rejected or the insurer may charge a high premium to mitigate the risk they take in offering your insurance cover.
But if you reside in a country that is peaceful, has a stable government and there is risk of political upheaval, you may find it easier to get the term insurance protection.
How can I pay the premium for term plans?
You can easily pay the premium for the term insurance cover you buy in India through remittance from your NRO or NRE bank account. However, when you pay the premium, it is vital to check the currency in which the policy is issued to you.
If the policy is issued in foreign currency, then you must pay the premium in specific currency only through your NRE or FCNR bank account. If the policy is issued in INR, you can pay the premium through NRO account.
Term insurance is a must-have for all. If you are an NRI and your dependent family members live in India, buying a term insurance is a great way to give them the financial cushion they deserve and protect their future if something happens to you.