Buddy hive

Buddy Hive
3 min read · Jan 18, 2025

For Non-Resident Indians (NRIs), financial security is a top priority, especially when supporting family members or dependents in India. Term insurance serves as an essential tool to ensure financial stability and peace of mind, even in unforeseen circumstances. If you’re an NRI considering term life insurance, this guide will walk you through the essentials and help you make informed decisions.

Why Should NRIs Consider Term Insurance?

Financial Protection for Dependents: Term insurance provides a high sum assured at a low premium, offering significant financial security to your family in case of your untimely demise.
Cost-Effective Coverage: Premiums for term insurance in India are often lower compared to policies in other countries.
Tax Benefits: Policies purchased in India provide tax exemptions under Section 80C of the Income Tax Act, which can benefit NRIs filing taxes in India.
Coverage in Dual Locations: Many insurers offer worldwide coverage, ensuring your family is secure regardless of where you reside.

Things to Keep in Mind Before Buying Term Insurance

Eligibility: Ensure you meet the insurer’s criteria. Some policies may require NRIs to be present in India during policy issuance.
Policy Tenure: Opt for a tenure that aligns with your financial obligations, such as your children’s education or a mortgage.
Currency Choice: Decide if you want to pay premiums in INR or foreign currency. Some insurers allow payments in USD or other currencies.
Medical Tests: Most insurers require a medical test. Check if it can be done abroad or only in India.

Steps to Purchase Term Insurance in India

Research Policies: Compare term insurance policies from reputed insurers. Look for options with high claim settlement ratios and flexible premium payments.
Check Documents Needed: Common documents include proof of identity, address, income, and NRI status (passport, visa, or work permit).
Select the Sum Assured: Choose a sum assured based on your family’s future financial needs, like education, debts, and daily expenses.
Submit Proposal Form: Fill out the insurer’s application form online or offline, providing accurate details.
Medical Tests: Complete the medical tests required by the insurer. Some tests can be done at your location if the insurer permits.

Trusted Insurers Offering Term Insurance for NRIs

LIC of India: Offers the “LIC Tech Term Plan,” a non-linked, non-participating pure risk premium plan.
HDFC Life: Known for flexible options, including coverage for critical illnesses.
Max Life Insurance: Popular for its “Smart Term Plan,” which includes add-on riders.
ICICI Prudential: Provides a wide range of customizations to match your needs.

Relevant Links for NRIs

Conclusion

Term insurance is a prudent choice for NRIs who wish to ensure their family’s financial security. By understanding the nuances of purchasing insurance in India, you can choose a policy that aligns with your needs and offers peace of mind. Start exploring term insurance options today to secure your family’s future.