NRIs Buying Life Insurance in India - 4 Key Factor To Consider

Indians that are settled abroad understand the acute importance of having a life insurance policy to safeguard the financial future of their families. Realising this need gap, Foreign Exchange Management Act (FEMA) has allowed Non-Resident Indians (NRIs) and People of Indian Origin (PIOs) to buy life insurance plans (term plans) in India. Several insurance companies now offer various customised options to woo NRI consumers at affordable premiums.Before you get down to selecting the plan that best suits your needs, there are some things you must consider first.

1. While an NRI must possess a valid Indian passport for purchasing life insurance in India, PIOs can buy insurance by showing valid documentary proof of their Indian origin.
2. An NRI must not have applied for citizenship in another country at the time of applying for a life insurance in India.

1. You visit India to undergo the medical examination.
2. You get the tests done at any of the partnered centres of the insurer in the country of your residence.
3. You complete the medical examination in the country of your residence and send over the reports to the insurer in India.

1. If your policy is foreign currency-denominated, then you can pay it via your NRE/FCNR account.
2. In the case of rupee-denominated policy, you can make use of your NRO account.

1. Eligibility – You can buy a life insurance in India if you are an NRI (Non-Resident Indian) or a PIO (Person of Indian Origin). Two factors need to be noted here.
2. Medical Examination Procedure – Before you purchase a life insurance policy, you will have to undergo a medical examination just like the resident Indians. This can be completed in any of the following two ways:
3. Ways to Pay the Premium – Fix upon a mode of payment that is convenient for you, to ensure you never miss a premium and risk penalty on your policy. You can choose to pay the premium in either of the two ways:
4. Policy Buying Costs – The cost of the policy depends on the country of your residence apart from other factors. For example, living in a high-risk country that is facing political or geopolitical instability, might increase the insurance premiums.

A life Insurance policy can be a great way for NRIs and PIOs to add a layer of protection for their family members in India. Keeping in mind the factors mentioned above coupled with your financial situation, buy a life insurance policy in India based on your budget and requirements.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.