Importance of life insurance for NRIs

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A life insurance policy is a policy that provides cover to the family or the nominee of the insured with financial support after the death of the insured in exchange for a certain amount of premium every year. Life insurances can be compared to a piece of cloth. If it does not fit a person, it is not necessary that it will fit the other, with a different built (compared to different needs in a life insurance). Every person who is looking to get insurance, has their own personal needs, budget, savings, future goals and a different level of risk appetite. A good life insurance policy is what will satisfy their needs and that can be achieved by carefully researching about the different possibilities. A plan might be useless for one but it might benefit another person who is looking for different things that the other didn’t require. To not regret buying a life insurance policy, you can consider policy fees, overall expert ratings, complaint ratings, financial strengths, credit ratings, etc. Product reviews and articles about the companies might also help.

It becomes extremely important for non – resident Indians to get a life insurance from Indian insurance companies for the betterment of their family. In the case of the unfortunate death of an NRI, their family behind in India is left helpless, mainly because of the physical difference that makes things more complicated.

It would be easier for the NRI to take up a life insurance policy in India so that after their unfortunate death, it would be easy for their family and nominees, in India, to benefit from the insurance policy.

A non – resident Indian, on whom their family is financially dependent, needs to have a way to look out for their family after they are gone. If you have family that is far away and is financially dependent on you, you need to get the life insurance policy as a NRI from India so that they can keep getting financial aid to ensure the continuation of their functioning.

There is a huge importance for NRIs to buy life insurance from India as life insurance policies bought in India are tax free. In other countries, even if the principle amount is not taxable, the interest is usually taxed. In India, they have a lot of tax benefits that come with them. Even if the sum assured is given as a maturity benefit or as a death benefit. So, it is important and better for a non – resident Indian to take up a life insurance policy from India for higher benefits.

Buying a life insurance policy from India might be comparatively cheaper, depending on the country you are a resident of.

If you are a non – resident Indian and buying a life insurance policy from India, you will be charged the same amount for the policy as any other Indian would be charged, all depending upon the sum assured, your age and other basic factors. So, there is clearly no reason you would not buy a life insurance policy from India, your home country.

There are many ways in which a non – resident Indian can pay for the life insurance policy from their resident country. Non – resident Indians can get the life insurance policy while visiting the country or, in some cases, online as well.

Get the best NRI term insurance policy with the best benefits and with easy ways to make payments. The payments for the premiums can be made through online banking, the NRI just needs to have an account in an bank which is authorized and the modes of the payments can be as follows:

 

  • NRO bank account
  • NRE or FCNR bank account
  • Foreign currency remittance which will allow the NRIs to make payments without hassles.

 

If you are the sole bread earner of your family and living away, in another country, from them, it becomes all the more important for you to get a life insurance policy so that your nominees can benefit monetarily in case of your unfortunate death.

This ensures a guaranteed income replacement for your family or parents or children after your demise and ensured that they get a financial cover for their financial security. If you have young children, the life insurance policy will also help you provide them with a support for their education in case of your untimely and unfortunate demise. Protect your family, abroad or India, by getting a good NRI life insurance cover from India to also contribute by helping the economy of India grow. Get the life insurance policy once you have a steady source of income as well as when you have a family that is dependent on your financial support to get them a income replacement in terms of the death benefit.

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