Why NRIs should purchase term insurance from India

Given life's inherent unpredictability, individuals may find themselves in precarious financial circumstances without a well-thought-out financial plan. The stark evidence of this fact is illuminated by recent global events, such as the devastating Covid-19 pandemic, which abruptly claimed countless lives and disrupted financial stability. It underscores the critical role insurance plays in the realm of financial planning.

In such turbulent times, a comprehensive term insurance policy assumes a pivotal role as a robust financial safety net. It not only provides protection but also offers peace of mind, ensuring that loved ones are shielded from the potentially devastating financial repercussions of unexpected events. This insight underscores the transformative potential of term insurance in securing one's financial future amidst the ever-changing and unpredictable landscape of life.

Rhishabh Garg, Head of Term Life Insurance at Policybazaar.com, underscores the significance of purchasing term insurance for Non-Resident Indians (NRIs). NRIs often leave their home country to provide a better life for their families. Investing in a term plan from India allows NRIs to effectively manage their financial risks, ensuring the financial security of their loved ones even when they are not present.

Garg advises NRIs to consider buying term insurance from India as a general practice. This is due to the fact that term insurance policies in India typically offer more comprehensive coverage and are often more affordable compared to policies available in other countries. The cost disparity can be significant, especially for NRIs residing in developed nations. For example, the cost of a term insurance plan purchased from the UAE or Singapore can be 40-50 per cent higher than that of a similar plan in India.

Additionally, there is now an added benefit for NRIs purchasing term insurance from India: they are eligible for an 18 per cent GST refund on their NRI term insurance policies. Previously, NRIs were eligible for a 3 crore Term plan with video medical requirements, but this has been extended, allowing them to purchase term plans of up to 5 crores.

Another reason why NRIs should buy it from India is the availability of a wide range of options. Indian insurance companies offer a variety of policies to suit different needs and budgets. This means that NRIs can choose a policy that best fits their individual circumstances and provides the coverage they need at a price that they can afford.

Additionally, an NRI may have specific insurance needs that are better met through a policy from an Indian insurer, such as coverage for critical illnesses or medical treatments in India. In such cases, purchasing insurance from an Indian insurer can provide the NRI with the coverage they need at a more affordable price.

Since these plans are designed with benefits and features that specifically cater to the Indian consumer, as opposed to plans in the host country which are designed with their citizens in mind, they often make more sense for NRIs, especially those who have family members living in India.

Several term insurance providers in India now offer tele-medical checkups for NRIs as part of their coverage. Tele-medical checkups allow individuals to receive medical care and advice remotely, using voice or video calls. This can be especially beneficial for NRIs who are living outside India and may not have easy access to in-person medical care. It can save NRIs time and money by eliminating the need to travel to India especially to visit a hospital for check-up.

Overall, purchasing insurance from India can provide NRIs with the financial protection they need at a competitive price. With digital technologies available at fingertips, it is now possible to buy a term insurance policy from anywhere, online. Therefore, NRIs no longer have to put off making this important decision until their next trip to India.