A term plan offers financial protection to everyone who is in need of insurance. Whether you are an Indian or a Non-Resident Indian (NRI), you can buy term insurance plans for your security. A term insurance plan can be the purest form of insurance, which can safeguard your loved ones from uncertainties of life in your absence.
NRIs can purchase term insurance plans to receive financial support in the long run. As an NRI, you can buy term insurance in two ways. Let’s take a look below to know how you can avail term insurance for yourself and your loved ones:
- You can buy term insurance when you are in India. However, you would receive the term policy only after the completion of the formalities related to the underwriting of your insurance policy.
- You can purchase the term policy from the country you are currently located at through mail order business. When you avail a term policy via mail order business, it would be notified by the following:
- An Indian diplomat
- An Indian embassy official
- Students can approach dean/supervisors for verification
Submitting the right documents can be helpful in ensuring a quick purchase. When you fail to provide the appropriate paperwork, your insurance company might fail to provide you with a term insurance policy. Therefore, let’s go through the following documents mentioned below, which you may have to produce in front of your insurer:
- An attested passport copy
- An application form
- Medical reports
- Age proof
- Salary slips/ income proof
- First premium
Term insurance for NRIs can have flexible terms and conditions. In addition to this, you can find numerous features under term insurance plans for NRIs. Therefore, let’s try to understand each of these features mentioned below in detail:
The premium depends on various factors like the policy term, sum assured value, premium payment frequency, and selected riders. However, if you fail to pay the premium within the grace period, your term policy can be terminated. When you select a premium payment term of either 6 months or 1 year, the grace period for premium payment can be 15 days.
Under term insurance for NRIs, the sum assured can vary between 2 lakhs to 1 crore. Your nominees can receive the entire sum assured amount in your absence. With a sum assured amount, your family can maintain their current lifestyle without your presence.
Many insurance companies might offer a renewal option for your term plan when the policy reaches maturity. If you want to renew your term insurance policy, you should submit the medical report to meet the renewal criteria. Moreover, you should have a clean chit in terms of premium payment.
As an NRI, you can pay the premiums with the help of internet banking. All you can do is open an account in an authorized bank, which allows an electronic transaction directly to your insurer. For using the net banking feature, you should carefully read the terms and conditions in the policy document. Your insurer might provide you with payment modes, which include Non Resident Ordinary (NRO) bank account, remittance in foreign country, Non Resident Rupee (NRE,) or Foreign Currency Non-Repatraible (FCNR) bank account.
In a nutshell, many insurance companies have introduced these plans due to the rising demands for term insurance benefits and popularity amongst the NRIs. The availability of term plans for people across the globe has given insurance companies an opportunity to not only capitalize their potential but also drive a mutual growth of insurance policies.