As the NRI homecoming season nears, many non-resident Indians (NRIs) must be revisiting their financial strategies, with life insurance emerging as a key consideration. The appeal of Indian life insurance policies is growing among NRIs, thanks to their competitive premiums, comprehensive coverage, and tax advantages.
How NRIs can buy life insurance in India
The process of purchasing life insurance in India has become more convenient for NRIs, with online platforms and flexible payment options simplifying the process. NRIs can now buy policies remotely, without having to be physically present in India.
Bajaj Allianz Life and Tata AIA Life Insurance have adapted their offerings to meet the needs of overseas customers, enabling online applications and payments via NRE (non-resident external) or NRO (non-resident ordinary) accounts.
Tata AIA Life Insurance, for example, has expanded its reach by launching life insurance products through Gujarat International FinTech (GIFT) City, India’s first international financial services centre (IFSC).
This allows NRIs to access dollar-denominated policies, helping them hedge against currency fluctuations. “NRIs can explore plans, select coverage, and customise policies from anywhere in the world,” the company noted.
Here’s a look at the process
- Policies can be purchased online, through authorised representatives, or via brokers specialising in NRI services.
- Premiums can be paid using non-resident external (NRE) or non-resident ordinary (NRO) accounts, foreign bank accounts, or even international credit cards.
- Most insurers provide digital processes for documentation and verification.
- Life Insurance companies simplify medical pre-requirements for NRIs by partnering with medical centres in over 40 countries.
Advantages of Indian life insurance policies for NRIs
Indian life insurance policies offer several benefits that make them an attractive choice for NRIs. For instance, maturity proceeds and death benefits are often tax-free under Indian tax laws, a feature that might not be available with foreign insurance policies.
Indian insurers also offer flexibility in premium payment options, allowing NRIs to pay premiums in foreign currencies through their NRE or NRO accounts.
“India continues to provide ample opportunities for robust financial planning and capital growth, through various tools including life insurance, for NRIs,” said Rajesh Krishnan, Chief Operations and Customer Experience Officer at Bajaj Allianz Life.
Krishnan added, “India offers attractive premium rates for protection plans compared to what NRIs might pay for similar policies in their country of residence. Moreover, these products — ranging from savings and wealth-building life insurance plans — offer unique features, competitive returns, and convenience.”
A look at features and facilities offered by Indian insurers
Indian life insurers provide a range of features and facilities designed to meet the unique needs of NRIs.
One of their key offerings is the ‘Life Protect Supreme’ plan, which offers comprehensive protection up to the age of 100 years.
“This plan covers death and critical illness until 100 years of age, and accidental and disability protection up to 85 years,” explained a Tata AIA spokesperson.
The policy also allows for no limits on the sum assured and a minimum sum assured of $50,000. Further, investing in an Indian rupee-denominated policy allows NRIs to shield themselves from foreign currency fluctuations.
Many NRIs prefer Indian policies for estate planning, as they can direct the proceeds to specific beneficiaries, ensuring that their estate is distributed as per their wishes.
“Indian policies provide tax benefits under the Indian Income Tax Act and GST laws, making them financially advantageous for NRIs,” said Nitin Mehta, Chief Distribution Officer and Head of Marketing at Bharti AXA Life Insurance. He further noted, “Indian life insurance policies help ensure the financial security of the policyholder’s family in India, providing peace of mind, especially in case of unexpected life events.”
Mehta added that NRIs can also benefit from flexible premium payment options and comprehensive coverage.
Sourcr: CNBC TV8
Canara HSBC Life Insurance has launched a brand campaign featuring actor Varun Sharma, focusing on the importance of financial planning for modern consumers. Reportedly, the campaign includes three main ad films and supporting content, showcasing scenarios where financial solutions like savings, retirement, and term plans address diverse goals.
“At Canara HSBC Life Insurance, we aim to demystify financial planning and make it approachable for everyone. Often seen as complex and overwhelming, financial planning becomes relatable and engaging through this campaign’s light-hearted yet meaningful storytelling. By showcasing real-life scenarios, we not only highlight the importance of insurance but also demonstrate how our tailored solutions empower individuals to achieve their diverse aspirations seamlessly.” Rishi Mathur, chief marketing officer and chief distribution officer- Alternate Channels, Canara HSBC Life Insurance, said.
From what is understood, the films depict relatable situations: a couple exploring savings and retirement plans, two brothers addressing financial goals through term and savings plans, and a father-son conversation on securing future generations using child and retirement plans. The campaign will roll out across digital platforms, television, and social media channels.
Life insurance is a crucial aspect of financial planning that most people tend to ignore. It is a policy that guarantees financial stability to your loved ones in case you die. The benefits of life insurance are numerous, and you must consider purchasing one for your family’s sake.
The primary benefit of life insurance is providing financial security for your loved ones. Life insurance pays a tax-free lump sum amount to your beneficiaries in case of your death. These payments can cover funeral costs, outstanding debts, and living expenses. It ensures your family members do not have to worry about their financial future in your absence.
These customizable policies allow you to choose the coverage that suits your needs. You can opt for a term life insurance policy that provides coverage for a specific period or a permanent policy that offers a lifelong range. The amount of coverage can be adjusted depending on your income, debts, and financial goals.
Another significant benefit is its ability to pay off debts and mortgages. Your beneficiaries can use the payout to pay off outstanding debts such as a mortgage, credit cards, and car loans. It prevents your family from losing their assets and home due to financial difficulties.
These policies can also serve as an investment tool. Some policies offer a cash value component, and life insurance is a crucial aspect of financial planning that most people tend to ignore. It is a policy that guarantees financial stability to your loved ones in case you die. The benefits of life insurance are numerous, and you must consider purchasing one for your family’s sake.
Lastly, life insurance policies provide peace of mind. Knowing that your loved ones are financially secure and their future is taken care of can relieve you of stress and anxiety. You can focus on living fully, knowing your family is protected.
In conclusion, life insurance is a critical component of financial planning that must be addressed. Its benefits include financial security for your loved ones, customizable coverage, debt and mortgage payments, investment opportunities, and peace of mind. By purchasing a life insurance policy, you can ensure that your family’s future is secure, no matter what the future holds.
ISO Certified: 9001 – 2015