4 Premium Payment Options for NRIs

NRI's can purchase policy when in India.
 

A term plan is an important investment that aims to ensure the financial comfort of your family in your absence. While resident Indians can invest in various term insurance plans, not many people are aware of the fact that even NRIs (Non-Resident Indians) can secure their families back home through a term plan.
 

Insurance providers have developed policies that are specially curated to address NRI insurance needs. Term insurance for NRI has most of the formalities online for ease of purchase. Aside from the online purchase of term insurance, even the life insurance premium for NRI can be paid online by their chosen mode of payment. One can purchase NRI insurance in India even during their home visit.
 

To ensure regular and hassle-free payment of life insurance premium for NRI, insurance providers have enabled digital payment methods. Failure to make timely payments can lead to a lapse in the policy.

Types of Premium Payments for NRIs

To ease the purchase journey of term insurance for NRI, insurance providers have come up with various convenient and secure payment options:
 

1. Online payment
   

One of the easiest premium payment methods for NRI insurance is by using your credit or debit card. The policyholder can link their Visa, Amex, or Mastercard with the payment website to make the necessary remittance. You can make easy term plan payments by simply activating your card and entering the PIN to make the payment.
 

2. Internet Banking
   

The premium for NRI insurance can be paid by logging into the Non-Resident External (NRE) or Non-Resident Ordinary (NRO) account. An NRE account holds the earnings of an individual that they have made in a foreign country. Contrarily, an NRO account manages their income garnered in India. NRE accounts are exempted from taxes^*. The internet banking payment method for either of these accounts is an easy and hassle-free process.
   

3. Foreign Account SWIFT Transfer
   

You can make the premium payments for your NRI insurance in India, even from a foreign bank account. You simply have to visit the bank and enable the electronic transfer of money through SWIFT. Although most banks offer SWIFT facilities, you will have to check whether the bank you are transferring through has enabled SWIFT for the Indian currency.
 

4. Cheque payments
   

Cheque payments are the traditionally welcomed method by insurance companies for accepting the premium payment for NRI insurance in India. The payment can be made through any of the bank accounts that are held by the insured member under their name. The account can be NRE, NRO, or Foreign Currency Non-Resident Account. By simply dropping a cheque from any of these, the premium for your term plan can be successfully paid.
 

Any of the above-mentioned methods can be used for a convenient premium payment of your term insurance for NRI. All of them are secure payment options that ensure that the dues are cleared in no time. However, it is of utmost importance to make the premium payments in the specified time to prevent policy lapses and penalties for late payments.

Points to Consider Before Buying Term Insurance for NRI

As term insurance promises the financial freedom of your loved ones when you are not around, careful thought has to be invested before arriving at a purchase decision. This is to prevent unpleasant surprises in the future.
 

Here are the important things to look at before buying term insurance for NRI:-
 

• Eligibility: Subject to the fulfilment for certain conditions, both NRIs as well as Person of Indian Origin (PIO) are eligible to buy life insurance in India. Regardless, it is important to check the eligibility criteria for buying term insurance. The general clauses for purchase include:
   
  • Having had an Indian passport anytime in the past
  • By the Constitution of India or the Citizenship Act 1955, either the policyholder themselves, or their parents, or their grandparents had been a citizen of India
  • If the policyholder is the spouse of an Indian citizen
     

For buying term insurance for NRI, the insured member needs to hold an Indian passport, whereas a PIO needs to fulfil the aforementioned criteria.
 

• Reliability of the Insurance Provider: A term plan is a financial backup, and so the insurance provider that you choose needs to be reliable. Check the factors such as the claim settlement ratios^# and look at the company’s former track record to gauge the dependency.
  
  Tata AIA term insurance plan is designed to ensure a happy future, and it aligns your financial goals – whether it is planning a worry-free retirement, saving for your child’s future, or achieving your aspirations – to provide suitable coverage.
   
• Acquaint Yourself with Taxation^*: Before investing in a term plan in India, it is advised to look at the taxation laws in India as well as the policyholder’s country of residence. The taxation obligations need to be observed right from investment and accumulation to maturity. While Indian laws are tax-free in all three stages, check whether the same applies in your country of residence.
   
• Understand the Medical Examination Process: The term insurance NRI premium amount is calculated based on the age and the health of the policyholder. To determine the latter, insurance providers usually ask for a medical examination to evaluate the health risks. If the risk is greater, - the NRI premium amount for the term plan will also be fixed accordingly.
  
  Usually, the medical examination can either be done in India, in which case the insurance provider bears the cost of the examination. The other option is to take the test in your country of residence and send the medical report for examination.
  
  If you are buying non-resident insurance, your insurance provider is usually tied up with a medical facility where you will be asked to take the test, and the cost will be borne by your insurance provider.
   

To conclude, term insurance for NRI in India is both affordable and comprehensive, and so your options need to be carefully weighed to know whether the policy addresses all your financial concerns. Moreover, the convenient premium payment options further ease the purchase journey.
    

L&C/Advt/2023/Feb/0623