As we know that term insurance is the simplest and the best way to safeguard ourfamilies financially against any type of eventuality, it is important for every individual to have a term insurance plan. Along with the Indian citizens, the Non-Residential Indians (NRIs) can also purchase term insurance plans in India. Let’s take a look at the process to avail term insurance plan for NRIs in India and the features of the plans.
The non-residential Indian who wants to avail the term insurance plan can apply for it in 2 different ways. These are:
• The individual can buy the policy while visiting India. Once the buyer completes all the formalities related to the policy, the plan will be considered the same as any other plans purchased by an Indian citizen.
• The NRI can also buy the policy in the country he/she is residing through the process of mail order business. Once the insurance buyer fulfills all the formalities related to the policy, it is verified by the notary, an official of the Indian embassy, an Indian diplomat. The NRI student should approach the supervisor or the dean for verification.
• Policy Term
The NRI policyholder can have a term insurance plan for the tenure of 6 months to a maximum of 25 years. The minimum age eligibility to purchase the policy is 18 years and the maximum age limit is 55-60 years depending on the policy terms and conditions.
• Premium and Sum Assured
The sum assured amount of the policy varies from minimum Rs.2 Lakhs to maximum Rs.1 crore. The NRI term insurance plans do not have a fixed premium rate as the premium amount is determined based on various factors like age, premium payment frequency, sum assured amount, policy tenure, riders, etc. In the event of the unfortunate decease of the insured the death benefit is paid to the beneficiary in his/her NRE account.
• Grace Period
In case, the insured fails to pay the premium of the policy within the due date then the policy does not lapse. A grace period of 15 days is offered by the insurance company during which the insured can pay the premium of the policy.
• Payment of Premium through Internet Banking
The NRIs can pay the premium of the policy through the process of internet banking. For this, the policyholder requires to have an account at any authorized bank which allows the online transaction to the insurance company. While making the premium payment of the policy, the policyholder should keep in mind all the information related to the terms and conditions of the policy. Different online payment options include- NRO bank account, Remittance in foreign currency, NRE/FCNR Bank Account.
• Documents Required
The documents that should be kept handy while purchasing a term insurance plan are income and age proof of the policy buyer, proposal form, attested copy of passport, health certificate, applicable amount that is equal to the first premium, etc. while purchasing plan via mail order business, the insurer can ask for some additional documents as well.
Health Insurance for Smokers - The fact of being a smoker amplifies the health insurance premium for smokers as compared to non - smokers.
Critical Illness Cover - Understand some of the important reasons why you definitely need to include a critical illness rider along with your term insurance plans
Life insurance can be combined with investments and many life plans allow you to do that. Check 4 Types of Life Insurance Investment Plan You Can’t Miss.
Term Insurance - Are you planning to buy Term Insurance? Check 5 Common Mistakes to Avoid While Purchasing Term Insurance Plan
We usually hesitate while buying a term insurance plan. Read 5 Myths about term insurance plans that you should not believe.
Life Insurance is important to be considered by every individual. Here are the 5 Things you Can’t Miss to Know about Life Insurance Policy.