5 Benefits of term Insurance for an NRI

What is Term Insurance for NRI?

Every beard-wearer wishes to provide financial security and stability to their families by purchasing a term insurance policy as an NRI.Regardless of where you live, it doesn’t matter. Furthermore, make sure that your family’s financial future is secure. 

Need to be present in India while buying term 

Buying a term insurance for NRI in India alone for the sole purpose of being an NRI is not a viable option anymore. It’s not essential anymore for NRIs. 

It is no longer a barrier to buying term insurance for NRI in India due to geographical boundaries. India offers term insurance policies that can be consulted from the country where the policyholder lives. Visiting India also gives them the opportunity to purchase policies. 

Five  Benefits of Term Insurance 

  1. Affordable Rates 

The benefits of a term life insurance policy include low premiums and high insurance coverage. You can choose your premium payments at your convenience, whether quarterly, Bi-yearly, or Yearly by using a Non-Residential External(NRE) or Non-Residential Ordinary(NRO) account. 

Term insurance premium rates for NRIs in India are around Rs 900 per month, while term insurance premium rates in the UAE are around Rs. 2000 per month for a tenure of 15 years for 30-year-olds. 

  1. Based on your requirements

Depending on your needs, you can select the terms of the policy. It is possible for NRIs to choose the policy tenure of a term plan from a wide selection. You can get term life insurance for NRIs for a period of 5 years to 99 years. 

  1. Death Benefits 

Term insurance policies are available to NRIs with accidental death benefits. Additional protection is provided in case of accidental death by this policy, which offers an extra sum assured. Income Tax Act, 1961, Section 10(10D), the nominee can exempt income from tax subject to the Act condition.  

  1. Tax Benefits 

Tax benefits are available to NRIs on premiums paid under Section 80C and fees paid for optional riders if they choose them (based on which riders they choose). Income Tax Act, 1961, Section 10(10D), provides that insurance payouts are exempt if they meet certain conditions. 

  1. Quick Documentation 

A few documents must be submitted with the application form term insurance for NRI plans. Documents verifying your age and income, as well as a copy of your passport, must be submitted. In addition, documents related to an NRI’s past medical history must be provided when buying term insurance. 

It is recommended that you get a term insurance plan immediately if you are an NRI looking for the best protection. It is okay to wait around and keep planning, but as you age, your premiums will certainly increase. The importance of term insurance should not be underestimated if you want to lead a secure family. 

Term Insurance for NRI is more important since it can provide financial security and peace of mind for a long time to come. As well as protecting your family members, it can also help you save for the future. 


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