Everything NRIs need to know about buying life insurance in India.

 While most NRIs have NRE Savings Accounts/NRO Savings Accounts/FCNR Accounts in India and even invest in the Indian markets, many may not consider buying life insurance in India. However, there are many benefits of maintaining a life insurance policy in India, especially if you have a family to take care of the back home. While NRIs support their families financially through various stages of life, life insurance policies help them look after their families in case of unforeseen events. 

 

The Foreign Exchange Management Act (FEMA) allows Non-Resident Indias (NRIs) and Persons of Indian Origin (PIOs) to get life insurance in India. If you are an NRI or PIO, here are the eligibility criteria you need to meet for buying life insurance in India.

 

- You or your parents or grandparents have been citizens of India as per the Citizenship Act, 1965

- You possess or have possessed an Indian passport at some point

- You are married to an Indian citizen

 

Here are some things you need to keep in mind before buying insurance in India.

 

Medical Examination

The great part about buying life insurance as an NRI or a PIO is that you don’t need to be present in India to buy life insurance, but you are required to give a medical examination. You can either visit India and give your medical examination or do a medical test at your country of residence and submit the report to your insurer. Many insurance companies that provide life insurance specifically for NRIs and PIOs have tie-ups with medical centers counterparts across the world. They may even arrange medical examination appointments at a center closest to you for your convenience.

 

Premium Payment

NRIs usually have families in India who can oversee the premium payments of their life insurance in India. Even without that as an option, it’s easy to pay premiums if you have an account in India. You can pay your premiums either through an NRO Savings Account, NRE Savings Account, or an FCNR account. If you purchase your life insurance in foreign currency, you can either pay your premium through an NRE Savings Account or an FCNR account.

 

Cost of Premium

If you are an NRI living in a high-risk country with exceeding political instability, you may be required to pay a higher amount of premium to your insurer. If you are residing in a country with low political instability, you may have to pay a lesser premium amount.

 

Maturity & Death Benefits

Life insurance policies in India purchased by NRIs cover death no matter where they are located at the time of death. The death benefit is provided either in rupees or the currency of your country of origin. Like any other life insurance policy, the nominee is required to submit the necessary documents to claim the life cover amount.

 

 

Many insurance companies offer a variety of benefits that might interest NRIs and PIOs to opt for their insurance policies. Different people have different needs, which is why it’s important to choose a life insurance policy that best fits you and your family’s needs

 

SBM Bank India has tied up with two of the leading insurance providers in India—Bharti AXA and HDFC Life to bring you a bouquet of insurance solutions. The partnership provides a wide range of solutions such as Protection, Pension, Savings & Investments, Health, and a lot more which will help you protect your family at every stage of your life. 

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