In the context of the Indian lifestyle, life insurance remains one of the most common and widespread financial programs in which citizens invest. The best part is that not only Indians living in India see the need to invest in life insurance. Indians well settled in a foreign land also understand the importance of life insurance to protect the financial needs of their family members. Can NRI take life insurance in India?
Based on this principle, the Currency Exchange Management Act enabled Non-Resident Indians (NRIs) as well as Indians (PIOs) to buy insurance plans on time in India. If you are an NRI and are looking for an affordable protection plan from India, insurers are now offering some interesting plans. You can buy timely insurance plans with premiums that are one of the cheapest in the world and meet your needs.
What does the NRI life insurance path look like exactly?
If you are a non-resident in India (NRI), you can buy life insurance plans that are designed specifically for people residing outside of India. You can buy a plan that will protect the future of your loved ones and protect them during your absence.
Life insurance is a traditional investment in India. If you are an NRI and want to buy a life insurance policy, you must keep the following in mind:
A person from India or NRI can take out a life insurance policy in India
- NRI does not have to be present in India at the time of purchasing the policy, written notification is sufficient. There may be some additional costs and a medical examination is required and the report should be sent to an insurance company in India. The NRI itself must cover the costs of the medical examination, if the test were performed in India, the cost would be embedded in the policy.
- Policies can be issued in a foreign currency and premiums are collected from the NRE / FCNR accounts of the insured or insured family members owned in India. All companies do not offer policies denominated in foreign currencies.
- In the event of problems with policies in Indian currency, contributions are paid from funds accumulated on NRO accounts.
- Premiums are higher if the insured lives in a high-risk country.
- An insurance policy purchased in India covers death anywhere in the world.
- Inflows and deaths are recoverable up to the amount of the bonus paid in foreign currency. If contributions are paid in Indian currency, death and maturity income is not repayable.
- There is a good chance that the cost of the policy will be lower in your country of residence.
What are the rules about death and maturity?
If NRI has taken out a life insurance policy from an insurer in India, the policy is required to take out death insurance, irrespective of the country in which the event takes place. The death grant paid to the beneficiaries of the policyholder is in the currency specified in the policy document, i.e. in Indian rupees or in another foreign currency. To apply for death, the nominee must submit all documents listed in the policy. Find out that the list of required documents may vary depending on the insurer.