Term insurance in India is no longer limited to only Indian citizens. With the advancements in today’s times, you can now avail of term insurance even as a Non-Resident Indian. NRI term insurance is a valuable financial instrument of which you can avail the benefits to amplify the protection for your loved ones.
What is NRI term insurance?
NRI term insurance is a variation of the traditional term insurance plans in India that benefit those who carry Indian citizenship but do not reside in the country. If you are an NRI, you can avail of NRI term insurance to protect your loved ones living in the country in the event of your death.
Term insurance is a form of life insurance policy that is available for shorter durations, massive sum assured, and affordable premiums. As an NRI, you are entitled to avail of these policies even if you do not reside in India.
You can purchase any of the different types of NRI term insurance, which are as follows:
- Increasing term insurance wherein the sum assured increases by a specified amount or percentage every year. It can help beat the rate of inflation so the death benefit that your loved ones receive will suffice despite the value of the Indian Rupee at the time.
- Decreasing term insurance that helps you repay massive debts and liabilities from Indian lenders. The sum assured will decrease every year. However, the difference will be used to repay lenders such that, as an NRI, you can reduce financial stress without constant indulgence.
- Term insurance with the return of premium can be an incredible savings plan that will build a corpus in India if you survive the policy tenure. While you live and build your fortune in a different country, you can also work on this savings plan in India through NRI term insurance.
- Levelled-term insurance is a relieving plan that allows you to determine exactly what to expect as a death benefit for your loved ones in the event of your unfortunate demise. In this plan, there are no changes to the sum assured. The terms of the contract are carried out as agreed upon during the inception of the policy, granted that you make payments of premium regularly.
NRI term insurance is an incredible way to protect those you love in your absence.
How to purchase and claim NRI term insurance?
These days, reliable insurers have online portals that you may visit to learn more about the policies they offer. You can also purchase the NRI term insurance plans online or when you visit India. You will need to submit the necessary documents and ensure that you have a residential address in the country.
You will also need to state your income, occupation, and use of tobacco for transparency in your NRI term insurance contract. Based on the information, the insurer will help design the NRI term insurance terms such that it benefits you and your loved ones.
In the event of your demise, your beneficiaries will need to submit a verified certificate of death that also illuminates the cause of your demise. They can then file a claim against the NRI term insurance and avail of the death benefits, and any additional bonuses included in the policy.
Term insurance benefits for single women
These days, women have also picked up the baton and been awarded equal opportunities to provide for their loved ones. The same benefits now extend to equip young women to avail of the benefits of term insurance and secure the future finances of their dependents. You no longer need a man by your side to provide financial protection for your loved ones. Instead, you can avail of the term insurance benefits for single women and breathe a sigh of relief.
To begin with, as women now you may have major responsibilities to overcome financial struggles, not just with a job but also by building your net worth. However, the unpredictability of life is still an undying threat. As a single woman, if you are the sole wage earner for your dependents, then the responsibility for their wellbeing extends beyond the scope of life:
- You can use term insurance benefits for single women to repay debts and liabilities in the family.
- You can utilise the term insurance benefits for single women to initiate your own business.
- You can use it to pay for major life stages.
- You can secure the future financials of your loved ones.
- You can include riders with the traditional term insurance benefits for single women to help pay for illnesses caused by your lifestyle.
- You can avail of tax benefits under the different sections of the Income Tax Act.
Independence and your strong will to provide for your loved ones have inspired the term insurance benefits for single women. You can protect your dependents and yourself with a suitable term plan as an Indian citizen or an NRI.
