NRIs can buy term insurance abroad, but here’s what they need to know


NEW DELHI: Does a Non-Resident Indian (NRI) have to be present in India when purchasing a policy? No they don’t. An NRI can easily buy a policy abroad. In some cases, however, it is better to buy the policy in India.

This article examines what an NRI should consider when purchasing term insurance abroad.

Rakesh Goyal, Director of Probus Insurance, said: “If someone is buying in other countries, the formalities will be a bit long. The country in which the policyholders reside is important, as the eligibility of the policy to purchase the policy and the premiums depend on this particular factor. If there are countries where there is political instability, the premiums would be higher. Many insurers have a list of countries in which their services are not available. So one should carefully consider the insurance companies before purchasing the policy. the term of the policy can range from six months to 25 years.

In addition, some insurers also offer a whole life insurance policy for NRIs. Some may perform telemedical examinations, while one has to submit the relevant documents requested by the insurance companies.

Varun Gupta, Chief Actuary and Appointed, Bharti AXA Life Insurance, said, “A person may be required to do all necessary medical examinations and share reports with the insurer while opting for a policy. For tests performed outside of India, in general, the costs must be borne by the individual. “

Additionally, if the policy is issued in Indian currency, an NRI can pay the premium through a non-resident ordinary account (NRO). If the policy is written in a foreign currency, the premium for the policy can be paid via their NRE, FCNR account, SWIFT transfer or international credit card.

“However, people living outside of India inherently have their families in the country who can ensure that the premiums after the policy is purchased are paid through the insured’s bank account in India,” said Gupta. Therefore, it is important to check in which currency the policy is issued, as the insurer may issue the policy in the currency of the country of residence of the NRI or in Indian currency.

Do premiums vary? Usually, the premiums do not vary for residents and non-resident Indians. Gupta said: “Premiums are based on a posterior assessment of the risk involved in insuring an individual – health, financial or country specific underwriting, the latter being specifically relevant for NRIs. Therefore, if the NRI lives in a country where the risk to life is higher, the premiums will automatically be higher. “

Request for services: Once a term policy is issued, any insurance company in India will cover the death regardless of the country of residence of the NRI. To submit the death claim, the policy nominee will need to submit all the necessary documents listed by the insurer. Gupta said: “The taxes and tax benefits of the police are based on the tax laws in force in the country in which the person resides.”

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