Protecting your family’s future is one of the most important things you can do. If you are an Indian residing in a foreign country, you might be pondering ways to protect your family there. Term insurance could be a really good way to do this. It is basically a basic and low-cost coverage through which your family is provided a lump sum amount of money in the event of your demise. This way they can also afford major expenses like housing, children’s education, etc.
Many assume that life insurance for NRI is either not easy or confusing. But in fact, India has now enabled you to get such insurance plans in a very easy way. In most cases, you can even do everything online without having to travel to India. Here is an overview of how these policies work and why they would be a good decision for you.
What Makes an NRI Buy Term Insurance in India?
There are several advantages of purchasing a policy in India. Firstly, the premium amount is generally considerably less than in most other countries. You are able to avail yourself of the same top-level coverage for a reduced cost. Secondly, Indian insurance firms have an outstanding track record in terms of claim settlements. Hence, you can be assured that your family will receive the funds at the time of greatest need.
Besides that, paying premiums in Indian Rupees or in the currency of the country where you are staying is also an added benefit. Further, if you have an NRE or NRO bank account, the entire procedure becomes very easy. Such a great degree of flexibility makes it not only possible but very simple to take care of your plan from anywhere in the world.
Choosing the Best Coverage
If you are planning to purchase term insurance, one of the main factors to consider is the amount of money your family would require in the event of your demise. Take into account what debt you presently have, such as a home loan. Besides, you should also figure out your future objectives, for instance, your children’s education costs. A majority of the literate folk recommend that you opt for a policy that is worth at least 10 to 15 times your annual income.
In addition, you should also consider the duration of your insurance cover. Generally, people opt for their plan cover to be running till the time they intend to retire. Plenty of plans even provide the option of coverage till the ages of 85 or 100. Selecting the proper period will make sure that you are covered when you are most vulnerable to work and earn.
The Great Convenience of Online Purchasing
Long ago were the times when there would be endless paperwork and several meetings. Nowadays, you can even do a comparison of different plans right from your mobile phone or laptop.
What comes with each plan is the cost, the benefits, and the conditions of the insurance company that are all laid out side by side. Such a comparison will make you arrive at an insurance plan that convincingly suits your finances and needs.
After you have selected your desired plan, you will be asked to complete an electronic form. You will be required to provide some basic information about your health and occupation. More often than not, you are not subjected to a physical medical examination. A lot of insurers are resorting to offering “tele-medical” examinations wherein a doctor consults you over a video call. This method of medical examination is a big time and travel saver for you.
Important Things to Keep in Mind
Before making a purchase, you need to find out the insurance regulations of the country where you reside. Most Indian insurers will provide coverage to NRIs living in countries like the USA, the UK, Canada, and the UAE. Yet, the guidelines may vary a little according to your place of stay. Disclosing your exact living location to the company is advisable so that you will have no unexpected issues later on.
Besides, you should check out the “riders.” They refer to additional advantages that you can include in your main plan. For instance, the “Critical Illness” rider will offer you a payout if you are found to be suffering from a serious sickness. The “Accidental Death” rider will be a source of extra money for your family in case the untimely death is the result of an accident. These little changes can really enhance your policy.
Tax Benefits and Payouts
Apart from the family protection element, purchasing a plan in India has issued tax savings as a huge advantage, and the premium amount made by you towards insurance can be used for the deduction of tax on any income earned in India, as per the Indian law. So, it is a win-win situation wherein you save your family as well as yourself.
Regarding the payout, you can have it given to your “nominee.” This person is often your spouse, child, or parent. Moreover, the recipient may get the payout in one single amount or through a series of monthly installments. Having the option of monthly disbursement can come in handy, particularly for those families who are relying on the income at home for their day-to-day living grace.
Taking the First Step
Life unfolds in unexpected ways, and we cannot foresee the future. However, we can equip ourselves for it. Getting a term plan is an extremely generous gesture. It is a proof of your affection for your family’s welfare, even if you are miles away. It reassuringly makes you feel that their aspirations will continue unaffected irrespective of the circumstances.
Your first step should be identifying a few leading insurance providers in India. Assess their “Claim Settlement Ratio,” as it indicates how many claims they have actually settled during the last year. Naturally, a higher figure is preferable. Once you identify a trustworthy company, the process of enrolling will only take you a couple of minutes.
Simply put, life insurance for NRIs is not just a document. It is a vow. It denotes that you will ensure the welfare of your family, come what may. As the expenses are minimal and the procedure quite convenient in India, there isn’t a better moment than now to make that vow. Dedicate a few moments now to check your term insurance possibilities. It is a tiny gesture that results in a huge impact for those dearest to you.
