Term Insurance For NRI

NRI term insurance plans are life insurance products that ensure financial protection for the families of non-resident Indians. In case of the unfortunate demise of the policyholders, the term plans provide a guaranteed sum assured to the nominee. In simple terms, term life insurance is a safety net that takes care of your family just like you even after your demise.

Term insurance for NRIs works similarly to other term plans. The life assured pays a premium to an insurance company in exchange for a sum assured. In the event that the policyholder dies during the policy tenure, the nominee will receive the sum assured as a death benefit.

NRIs can also opt for the Return of Premium benefit, in which the sum total of all the premiums paid is given back at maturity if the life assured survives the policy tenure. Additionally, NRIs can buy various add-on riders with their term insurance plan.

Many insurance companies offer term insurance plans for NRIs in India. The table below highlights some of the best term life insurance plans:

Term insurance for NRIs is beneficial in numerous ways. Some of the benefits are enlisted in the section below:

• Financial Stability: Term insurance plans are an affordable way to financially secure the future of your family. You can pay a minimum amount regularly in the form of a premium and create savings for your loved ones.
• Select Payout Option: The policyholders of NRI term insurance plans can select from different death benefit payout options, such as lump sum, regular sum, lump sum plus regular income, and increased sum over time.
• Tax Benefits: A premium paid towards Term insurance plans for NRI and additional riders are tax-free under Section 80C. Additionally, the death benefit paid to the nominee is tax-deductible under Section 10(10D) of the Income Tax Act, 1961.
• Death Benefits: NRI term plans provide financial protection to the family in case of the policyholder's demise. Therefore, a term insurance company will pay an assured sum to the nominee if the policyholder dies during the policy period.

NRIs can only purchase term insurance if they meet the following requirements:

• The age of the NRI must range between 18-65 years.
• You must own NRI status. Additionally, you can only apply if you reside in a country that is approved in a list of term insurance companies.
• The NRIs must have to submit their past medical reports.
• Insurance companies place restrictions on certain professions. Therefore, check with the insurer if your occupation type affects the purchase of a term plan.
• You must have a list of documents ready to apply for NRI term insurance plans.

NRIs will require the following documents to buy term insurance plans in India:

• Duly filled insurance application form
• Resident proof
• Passport copy
• Copy of authorised visa
• Past six months' bank statements
• Medical records
• Income proof
• Age proof
• Employment ID
• Salary slip for the past 3 months
• Foreign Account Tax Compliance Act form
• Passport-size photographs