Term insurance is a crucial part of financial planning. Even Non-Resident Indians (NRIs) can now easily buy a term insurance plan from Indian insurers. If you are confused when it comes to life insurance vs term insurance, know that they aren’t exactly separate categories. Term policies are a type of life insurance. You can also choose other types of life insurance plans if they fit your needs better.
Let’s understand what term life insurance is for NRIs.
Understanding Term Insurance for NRIs
A term insurance plan is a simple life insurance policy that provides financial protection to your family in case of your untimely death. It is a pure protection plan with no maturity benefit. For NRIs, it means that their loved ones in India will receive the sum assured in case of their absence.
Let’s look at the documents required for a term insurance plan for NRIs and other key aspects of buying the right policy.
Benefits of Term Insurance for NRIs
By opting for term insurance, NRIs can enjoy the following benefits:
Documents Needed for Buying Term Insurance as an NRI
Here’s a quick list of the documents NRIs need to submit when applying for a term insurance policy:
Attested Copy of Passport
This verifies your identity, nationality, and NRI status.
Policy Application Form
This is the official proposal form where you fill in personal details.
Health Reports
A medical check-up may be required, depending on the insurer, age, and sum assured. These records can help the insurer assess the risk of the individual.
Proof of Income
Salaried individuals can provide salary slips or bank statements. Self-employed NRIs can share IT returns.
Proof of Age
Some insurers have a term insurance age limit for their plans. Hence, to prove your age, you can provide your PAN card, passport, or birth certificate.
These documents ensure that the insurer has accurate and complete information before issuing the policy. You can use a term insurance calculator online to estimate the premium based on your age, income, and health.
Buying a term insurance policy as an NRI is a simple process when you have the right documents in place. Submitting the necessary paperwork may also ensure faster approval.
** Tax exemptions are as per applicable tax laws from time to time.