Elements of Term Insurance for NRI–

The term insurance for the NRI plan influences the following important elements for a better experience for the insured throughout the policy duration-

Eligibility: An NRI is eligible for term insurance for NRI offered by an insurance company based on certain conditions such as a residency permit of country of residence, valid visa, residency status, etc. 

Require documentation: The term insurance approval for the NRI plant requires more documentation including proof of residency, address proof in a residential country, Passport and Visa, proof of address, proof of income, health status, etc. 

Premium payment: NRIs have multiple options to pay premiums such as foreign currency or transferred through international banks with flexibility of amount and time based on the policyholder’s choice.  

Medical underwriting: Term insurance for NRI requires proper medical underwriting in which the insurance provider analyses the medical history, lifestyle, and health status of the insured for a smooth policy process. 

Simple and affordable: Term insurance is a simple approach to life insurance that offers affordable premium payment methods and wide coverage.  The simplicity and affordability of term insurance support the financial obligation of NRI while living in another country. 

Financial security: Term insurance supports the financial security of NRI in case of terminal disease or death of the insured. It is a suitable option for individuals living in another country and willing to protect the financial health of their family after their demise. 

Tax benefits and liability management: Term insurance also provides tax benefits based on respective tax laws. Term insurance is efficient in covering financial obligations including mortgages, educational loans and other associated liabilities.

Types of Term Insurance for NRI– 

Different types of term insurance for NRI offer different benefits and features that suit the different policyholders. Some of the common term insurance plans for NRIs are-

Level-term insurance: Death benefits in level-term insurance for NRI remain constant for the beneficiary throughout the policy. The premium amount also remains fixed day which develops predictability of cost among the insured. 

Increasing term insurance: Death benefits increase over time in the increasing term insurance plan for NRI. This plan includes three determined intervals to fulfill the financial needs of particular life events such as childbirth or marriage. 

Decreasing term insurance: Decreasing term insurance is designed for the policyholder to cover their specific light disease with decreases over time such as good education loans and debts. The death benefits also decrease in this term insurance plan over time whereas the premium remains the same.  

Convertible term insurance: Convertible term insurance allows NRI policyholders to convert the term insurance into a permanent policy of life insurance without providing insurability and medical examination.  It provides flexibility among NRIs willing to extend their policy coverage for the future. 

Term insurance with return of premium: This term insurance plan offers a portion or complete amount of premium paid during the policy term if the insured remains alive during the policy. It supports NRI policyholders to ensure financial stability with no losses.  

Joint term insurance:  In this term a planet the policy covers two or more individuals such as business partners or spouses. It is a convenient and cost-effective option for couples as well as business Associates to secure financial stability in case of the death of an insured individual living abroad. 

Group term insurance: The group of individuals covered in group term insurance to provide financial security such as members of an organization or a good group of employees. Group term insurance is preferable by organizations to aid in employment benefits or membership packages for NRIs.

How to buy Term Insurance for NRI– 

• Individual NRIs need to research different insurance companies providing term insurance for NRI and select insurance based on customer reviews, premium rates, claim settlement ratio and coverage options. 
• NRIs need to meet the eligibility criteria set by insurance providers and must have all required documents to get approval for 
• NRI individuals need to complete the registration by filing an application form needed by policy providers using offline or online modes. 
• To buy term insurance, an NRI need to get a medical examination to disclose the required information about their health status, existing disease and lifestyle. 
• NRI need to decide the premium amount and coverage by policy based on future and financial needs along with providing a nominee or beneficiary. 
• Providing details of nominees or beneficiaries in term insurance for NRI is mandatory to make the purpose of term insurance smooth and transparent.  
• Policyholders need to stay in a form regularly and review the insurance coverage periodically after the insurance provider issues the policy document.

Important Considerations Before Purchasing Term Insurance for NRI– 

• It is important for policy providers as well as NRI individuals to efficiently comply with the legal requirements of the country. 
• It is important to select reputed insurance providers by tracking their financial stability, claim settlement ratio and customer services to ensure reliability. 
• The analysis and evaluation of coverage options are important to compare by policyholder offering by the insurance company based on the flexibility, policy term, optional Riders and premium amount.  
• NRIs need to properly consider the policy currency as well as a conversion available within the type of term insurance offered by the insurance company.