Imagine this scenario: A 67 year old woman,who lives in India with her daughter-in-law and grandchildren, has received news that her 53 year-old son living in New York has had a car accident. Her emotions will move swiftly from immeasurable grief, to extreme anxiety—about whether to keep her grandson in engineering college, whether to start looking for a job for her daughter-in-law, whether to sell off the house.
#All savings and online discounts are provided by insurers as per IRDAI approved insurance plans | Standard Terms and Conditions Apply
The most important thing to remember is that situation like this can be avoided with a small amount of foresight.Life insurance for people with dependents is absolutely essential, and even more so when they are working abroad, because the vast physical distance makes formalities all the more difficult in the absence of a proper plan.
For an NRI with parents, spouse and children living in India, an appropriate policy is one that covers:
Regular guaranteed income for dependents
Wealth maximization for your spouse and yourself
Income to meet children’s education
Life insurance is often complemented by a child plan which allows the education of your children to continue uninterrupted. The family gets a lump sum upon the death of the parent, and the future premiums of the policy are paid by the insurance company on behalf of the policy holder. ICICI Life Insurance provides Pru Smart Life plan for your smartkid.
All persons of Indian origin, whether citizens or notare allowed to take a life insurance policy in India.The person may conduct the purchase from outside the country, though there may be additional costs in that case. If you are abroad, the cost of your medical test and the cost of sending the report to the insurance provider is not built into the cost of the policy. The payment of premiums can be made through:
Remittance in foreign currency
NRO bank account (For rupee denominated policies issued to NRIs)
NRE/ FCNR bank account (For foreign currency denominated policies issued to NRIs)
If the premiums are paid in foreign currency, then the proceeds are fully repatriable(can be sent from India to the NRI’s location) but if is paid in INR through the NRO Account, then it would be considered as an earning in India and not fully repatriable.
A person gets insurance when he has, first, a steady source of income and second, dependents who would need to replace that source of income in case of the earner’s demise. Again, if you wait too long then age and related diseases will make your policy more expensive.Experts believe that a life insurance policy has to cover a person till the age of 65. If the policy is for a lesser term, then the risky years are not covered.
Whether an NRI should get insurance in the country of origin or in the country of residence, is debatable. While making this decision, you should keep in mind that
Overall cost may vary from country to country. Whether it is cheaper to get life insurance in your country of residence than in India depends on your insurance provider.
In India all income from life insurance is tax free, whether as a result of death or of maturity. In other countries this may not be the case. In US the principal is not taxable but the interest is.
NRIs are charged on the same level as resident Indians, other factors (age, general health, occupational risk) remaining the same.
Note: It is suggested to calculate the term plan premium on the term insurance premium calculator online tool by Policybazaar before buying.
You may also like to read: NRIs Buying Life Insurance In India: 5 Points To Ponder
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer. Tax benefit is subject to changes in tax laws. *Standard T&C Apply
˜Top 5 plans based on annualized premium for bookings made on https://www.policybazaar.com in the first 6 months of FY 24-25.
Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
+Rs. 487/month (Rs.16/day) is starting price for a 1 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 38 years of age.
Prices offered by the insurer are as per the approved insurance plans | #All savings and online discounts are provided by insurers as per IRDAI approved insurance plans | Standard Terms and Conditions Apply | **Tax Benefits are subject to changes in tax laws.| Policybazaar Insurance Brokers Private Limited
We will respond in the first instance within 30 minutes of the customers contacting us. 30-minute claim support service is for the purpose of giving reasonable assistance to the policyholder in pursuance of the claim. Settlement of claim (including cashless claim) is the responsibility of the insurer as per policy terms and conditions. The 30-minute claim support is subject to our operations not being impacted by a system failure or force majeure event or for reasons beyond our control. For further details, 24x7 Claims Support Helpline can be reached out at 1800-258-5881
For more details on risk factors, terms and conditions, please read the sales brochure carefully before concluding a sale
Policybazaar Insurance Brokers Private Limited | CIN: U74999HR2014PTC053454 | Registered Office - Plot No.119, Sector - 44, Gurgaon, Haryana – 122001 | Registration No. 742, Valid till 09/06/2027, License category- Composite Broker Visitors are hereby informed that their information submitted on the website may be shared with insurers. Product information is authentic and solely based on the information received from the insurers.
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+Rs. 820/month is starting price for a 2 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 38 years of age.
+Rs. 1,443/month is starting price for a 5 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 38 years of age.
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