Are Canadian Citizens Eligible for Term Insurance in India?

If you plan to purchase or maintain term insurance for Canadian citizens in India, understanding a few practical aspects can help make the process smoother.

Premium payment options

Premiums can generally be paid through approved banking channels, depending on the insurer's accepted payment modes.

Key points include:

• NRIs may be able to pay premiums through eligible NRE, NRO, or FCNR accounts, subject to insurer requirements.

• Some insurers also accept payments through permitted international banking channels.

• The currency accepted for premium payments depends on the policy terms and the insurer's guidelines.

• Premiums are determined at policy issuance based on underwriting factors such as age, health, lifestyle, occupation, sum assured, policy term, and country of residence.

Sum assured and policy benefits

The purpose of term insurance remains the same regardless of where the life assured resides.

Important points include:

• If the claim satisfies the policy terms and conditions, the nominee may receive the applicable death benefit.

• Coverage is generally available even if the death occurs outside India, subject to policy provisions.

• Settlement of claim proceeds follows the insurer's payment process and applicable exchange control regulations.

• Nominees should carefully review the policy documents to understand payment procedures and documentation requirements.

Documents generally required

The exact documentation varies between insurers. Commonly requested documents include:

• Completed proposal form

• Identity and address proof

• Passport copy

• Valid visa or residence permit, where applicable

• Income proof

• Medical reports, if required

• Recent photographs

• Any additional underwriting documents requested by the insurer

Documents commonly required during claim settlement

If the life assured passes away outside India, additional documents may be requested.

These may include:

• Death certificate issued by the local authority

• Documents verified or attested as required by the insurer

• Employer certificate, where applicable

• Passport and travel records, if requested

• Medical records related to the cause of death

• Any additional documents specified by the insurer for claim assessment

Taxation considerations

NRIs residing in Canada should understand both Indian regulations and the tax laws applicable in their country of residence.

Before purchasing a policy, consider:

• reviewing the applicable tax¹ rules in India.

• understanding any reporting obligations under Canadian tax laws; and

• seeking professional tax¹ advice where required.

Eligible NRIs have multiple options for purchasing a term insurance policy from an Indian insurer.

They may apply during a visit to India by completing the proposal process at a branch or through an authorised insurance advisor. Depending on the insurer's underwriting requirements, medical examinations may also be completed in India.

Many insurers also allow eligible applicants to buy term insurance from Canada through their online or digital application process. Applicants can compare plans, submit documents online, complete medical requirements, and track their application remotely.

Before issuing the policy, insurers generally evaluate factors such as:

• age

• occupation

• country of residence

• travel history

• existing medical conditions

• family medical history

• financial eligibility.

Applicants should carefully review the policy wording, exclusions, waiting periods, premium payment terms, and claim requirements before purchasing the policy. Accurate disclosure of all requested information is important, as non-disclosure may affect future claims.