By FMTeam Living away from your home country can be really challenging. You go and work in a foreign country mainly to build a good life for your family back in India. While you are ensuring their daily happiness, don’t forget that it is equally important to secure their future. Life throws unexpected things at us, and we want to make sure our loved ones remain safe no matter what happens.
This is where an NRI term insurance policy helps. It is probably the easiest and most affordable way to ensure your family will still be able to live with dignity, clear any outstanding loans, and handle other major life expenditures even in your absence.
Here, we shall discuss the reasons why purchasing a term plan from India is a wise decision and how to choose the best one for you.
What is NRI Term Insurance?
A term insurance policy basically means pure protection. You make a yearly payment to an insurance company, which is called a premium. The company, in return, assures your family will get a big amount of money, i.e., the life cover, if something bad were to happen to you.
Special plans are available for Non-Resident Indians (NRIs) through the best Indian insurance companies. These plans safeguard your family, whether they come abroad to live with you or stay back home in India.
Why Should an NRI Purchase a Term Insurance Policy from India?
People generally assume that one should buy an insurance plan in the country of his/her residence. However, buying the finest term insurance plan from India can offer a few undeniable advantages:
- Significantly Lower Cost: Insurance plans in India are, generally, much cheaper than policies in the US, UK or UAE.
- Price Stability: In India, your premium will stay unchanged for the whole duration of the policy.
- Currency Benefit: You get paid in foreign currency while paying your premiums in Indian Rupees (INR). Due to the good exchange rates, you get a real sense of a low premium.
- Comfort for the Family: In case filing of a claim becomes necessary, your family in India can easily contact the local branch or the online helpdesk without going through international calls and time zones.
Important Features
Do not just see the price tag when shopping for the best term insurance plan. Also, be mindful of the features below that will make life easier for NRIs:
1. Medical Exam Using Video
If it turns out that you require a health check-up for your policy, you won’t have to arrange a return trip to India for the purpose. Telemedical or video-medical interviews are now being permitted by most leading companies.
2. Different Ways to Receive the Money
Consider how the family will probably use the money. A plan that gives you a huge lump sum can be chosen. On the other hand, a monthly income plan that supports regular household expenses can be selected.
3. Special Add-ons (Riders)
You have the option to enhance your insurance policy with additional security layers. For instance, a “Critical Illness Rider” would provide you with a lump sum amount if you were diagnosed with one of the critical illnesses covered in the policy. Meanwhile, a “Waiver of Premium” rider would allow you to stop paying premiums in case of a serious disability while keeping the life coverage intact as if nothing had changed.
How to Buy an NRI Term Plan
Insurance purchase has never been easier when you live abroad. It is possible to finalise your buy totally online with a couple of clicks:
- Step 1: Select Your Cover: Ideally, your life cover should be 10-15 times your yearly income.
- Step 2: Submit Docs: Upload online your passport, visa, copy of employment contract, and recent income proof.
- Step 3: Make Payments Without Hassle: Use your NRE, NRO, or foreign currency bank account for quick online payments.
- Step 4: Video Call: Carry out your video medical interview with the doctor the insurance team has appointed.
Taxation Made Simple:
You can use the premiums paid towards your NRI term insurance policy for reducing your taxable income in India as per existing regulations. Besides, the amount handed over to your beneficiaries is completely exempt from tax, thereby allowing them to get the full amount at their disposal.
Conclusion
Financially securing your family is one of the noble things you can do for them. Even if the distance separates you, it shouldn’t end the protection that you provide. With the right NRI term insurance policy, you will be able to have peace of mind that your family is protected irrespective of your whereabouts. Give yourself a few minutes to go over some plans online and venture on the path to a secured future.