Can NRI Buy Term Insurance in India

Term insurance is a necessity in today’s day and age due to the uncertainties linked with life. But can an NRI still buy online term plan from India while residing in abroad? Yes, the insurance sector of India enables NRIs to enjoy the perks of an insurance policy just like an Indian citizen. So let’s understand how an NRI can buy a policy from India and the documents required for the process.

Can NRIs Get Term Insurance in India?

A Non-Resident Indian (NRI) can easily buy a term insurance plan from India to safeguard their loved ones. The requirements of the NRI individual may differ but the premiums, death benefit or maturity amount will not change when compared to an Indian citizen. But this depends on the risk factors as well which can lead to an increase in the premium price.

How to Buy Term Insurance for NRIs?

There are two ways of going about the purchase of a life insurance policy for NRIs. The first method is where the individual can get a term pan just like an Indian citizen by visiting India. The second way is to get a policy from their place of residence and carry out further procedures via mail order. But this might require detailed verification and can be done through a notary and by visiting the Indian Embassy.

Other Conditions of Term Insurance for NRIs

Here are some conditions for NRI buying an online term plan:

  1. The age limit for NRIs to get a policy is between the age of 18-60 with some insurers also capping the maximum age limit at 55 years
  2. Sum assured for the insurance plan can be between INR 2 lakhs to INR 1 crore
  3. The terms and conditions of the policy are flexible for NRI policyholders
  4. The payment for the life insurance plan can be made via Non-Resident Ordinary (NRO) account or a Non-Resident External (NRE) account by using net banking
  5. The policy term for the plan can be between 6 months to 25 years
  6. The death benefit of the policyholder will be sent to the bank account mentioned while getting the insurance policy

Documents Required for NRI Term Insurance

Below-given are the documents that have to be submitted while buying the insurance plan:

  1. Application form
  2. Age proof
  3. Income proof
  4. Attested passport copy
  5. Checkup reports/ medical records
  6. The first premium that has to be paid to the insurance provider

With the help of details like conditions of the NRI term plan and the documents, the process will now be much easier. It is advised to get premium quotes from various reputed insurance companies and compare the benefits and Claim Settlement Ratio before buying a term policy.