Term Insurance for NRIs & OCI/PIO

No, it is not necessary for one to be present in India while buying term insurance for NRI & OCI/PIO. Since medical check-ups can be checked and confirmed via tele or video calls, an NRI can purchase the policy from their country of residence.

As a non-resident Indian &OCI/PIO,  you can purchase a term plan for NRI and pay the premium amount by logging on to your Non-Resident External (NRE) or Non-Resident Ordinary (NRO) account or foreign bank account with swift facility. Be sure to check if your bank offers internet banking facilities so that the process is simple and hassle-free.

The tax benefits for a term plan for an NRI & OCI/PIO are the same as a resident policyholder when it comes to claiming tax deductions. You can claim tax deductions on the premiums paid under Section 80C. However, you can only claim the 80C deduction if you have a valid PAN (Permanent Account Number) card.

A term plan for an NRI & OCI/PIO can be customised on the basis of the policy tenure, the sum assured amount and also the premium payment frequency and mode. One can also further customise the policy by adding term plan riders^ to the policy. However, the customisation through riders may be subject to certain terms and conditions.

Yes, an NRI & OCI/PIO  can purchase multiple term insurance plans in India, provided that the premiums for all the policies are paid on time.

If you have purchased a term insurance plan and then want to move abroad, let your insurance provider know about it so that the policy details can be altered accordingly. Also, mention the name of the country where you will be residing. Your insurer will get in touch with you if more information is needed.

Yes, an NRI can purchase a term insurance plan without visiting India. There are telemedical and video medical services available that enable the NRI to get their medical documents checked before the policy purchase without being present in person.

It is important for an NRI  & OCI/PIO to consider the below factors before purchasing term insurance in India for NRI:

• The policy tenure

The policy term for term insurance for an NRI & OCI/PIO can be as less as 6 months and go up to a maximum term of 40 years. Be sure to choose a policy tenure that will cover your family for an adequate period of time. While the plan is active, you (the policyholder) should be between 18 – 65 years of age, as this is an important eligibility criterion for a term plan.

• The policy coverage

The sum assured or the policy coverage should be planned as per your family’s future financial needs. In your absence, the death benefit paid out to them should offer sufficient financial support to them. Consider all expenses and emergencies when planning the sum assured, including the inflation rate. You can also opt for an increasing term plan whose coverage increases every few years.

NRIs & OCI/PIO can enjoy a tax exemption on the maturity benefits of a term plan with a return of premium under Section 10(10D). These exemptions are, however, subject to policy terms and conditions.

To file a term insurance claim in India, the NRI & OCI/PIO should ensure that they have a valid term plan and all the necessary documents to file a claim. One can reach out to Tata AIA Life Insurance through any of the below channels:

• Email us at: customercare@tataaia.com

• Call our helpline number - 1860-266-9966 (local charges apply)

• Walk into any of the Tata AIA Life Insurance Company branch offices

• Write directly to us at:

• The Claims Department,

• Tata AIA Life Insurance Company Limited
  B- Wing, 9th Floor,
  I-Think Techno Campus,
  Behind TCS, Pokhran Road No.2,
  Close to Eastern Express Highway,
  Thane (West) 400 607.
  IRDA Regn. No. 110

Yes, it is mandatory for an NRI & OCI/PIO to undergo a medical examination in their country of residence and provide the results to the insurer in India. They can send over the documents via courier or also opt for the telemedical or video-medical option.

Yes, NRIs & OCI/PIO can transfer or assign the term insurance policy to someone else. However, the insurance provider should be informed about the transfer so that the due process is followed and the transfer is smooth and hassle-free. From here on, the new owner of the policy will have to start paying the policy premiums.