1.
Can NRIs buy term insurance online from abroad?
Yes, NRIs can buy term insurance online using digital platforms supported by video KYC or online onboarding.
2.
What are the factors to consider before NRIs purchase term insurance in India?
The following are the key considerations before buying an NRI term insurance in India.
● Residential status as per FEMA and Income Tax rules. ● Availability of medical test facilities. ● Premium payment option through NRE, NRO, or foreign accounts. ● Valid global coverage.
3.
Is a medical examination mandatory for the NRIs to buy term insurance in India?
A medical examination is generally mandatory for NRIs to buy term insurance in India. However, some insurers can allow telemedical or video medical exams based on the applicant’s profile and sum assured.
4.
Can NRIs customise term insurance coverage and riders as per their needs?
Yes, NRIs can customise term insurance coverage and riders as per their needs. They can choose riders like critical illness, accidental death, or waiver of premium.
5.
Can NRIs purchase multiple term insurance plans in India?
Yes, NRIs can hold multiple policies, but the total coverage should align with income, financial need, and insurer approval, as IRDAI sets no upper limit on non-standard plans.
6.
What happens to my policy if I become an NRI after buying term insurance?
If you become an NRI after buying a term insurance plan in India, your policy remains valid as long as you keep paying the premiums. You need to inform your insurer about your change in residency status.
7.
Are term insurance death benefits for NRIs valid globally?
Yes, the death benefits are valid globally, and the nominee can receive the sum assured irrespective of the country of residence.
8.
What are the premium payment options for NRIs buying term insurance?
The premium payment options for NRIs buying term insurance are as follows.
Payment Mode |
Details |
NRE Account |
Can be used for tax-free8 payments and premium payments in INR. |
NRO Account |
Allows premium payments from income earned in India; taxable if applicable. |
Foreign Bank Card |
Useful for direct online payments from the country of residence. |
9.
Are the premiums for NRI term insurance higher than for residents?
No, premiums for NRI term insurance are generally not higher than for residents if risk factors are similar. However, premiums may be higher if the NRI has medical conditions or lives in a high-risk country with political instability or higher mortality rates.
10.
Are there any tax benefits for NRIs with term insurance?
NRIs are eligible for tax8 benefits on term insurance in India, such as deductions8 on premiums under Section 80C and tax-free8 death benefits under Section 10(10D) of the Indian Income Tax Act.
11.
Is the death benefit taxable for NRIs?
The death benefit from a term insurance policy is tax-free8 for NRIs under Section 10(10D) of the Indian Income Tax Act, irrespective of the premium paid or the sum assured.
12.
How does GST impact term life insurance policies for NRIs in India?
NRIs may get a GST refund or waiver on term insurance premiums in India if they pay from an NRE account and opt for annual payments.
Eligibility Criteria |
Requirement |
NRI Status |
Must be an NRI, OCI, or PIO |
Payment Mode |
Premium paid from NRE account |
13.
How does GST impact term life insurance policies for NRIs in India?
GST on term life insurance premiums for NRIs in India is 18%. However, NRIs may get a GST waiver if they pay premiums from an NRE account subject to prevailing GST laws.
14.
How can an NRI make a term insurance claim?
Here is how an NRI & OCI/PIO can make a term insurance claim.
Online Mode:
Notify the insurer via email or their online portal.
Upload required documents (death certificate, ID proof, policy details, etc.) digitally.
Track claim status online; payout is credited to the nominee’s account.
Offline Mode:
Visit the insurer’s branch office.
Submit physical copies of required documents (death certificate, policy papers, etc.).
The insurer processes the claim and credits the payout to the nominee’s bank account.
15.
Can NRIs transfer their term insurance policy to another family member?
No, NRIs cannot transfer their term insurance policy to another family member as per IRDAI rules. A term policy is non-transferable and stays in the name of the insured individual throughout the policy duration.
16.
Can NRIs nominate beneficiaries residing outside India?
Yes, NRIs can nominate beneficiaries residing outside India at the time of purchasing or updating their term policy.
17.
Are NRIs required to have a PAN card to buy term insurance in India?
Yes, usually insurers require a valid PAN card to complete KYC and comply with tax regulations.
18.
What is the role of NRE and NRO accounts in paying insurance premiums?
● NRE Account: Enables NRIs to pay insurance premiums using foreign income. Payments made in foreign currency from an NRE account may be GST-free and can also be eligible for Section 80C tax benefits8, if the NRI has taxable income in India. ● NRO Account: Used to pay premiums from income earned in India (like rent or dividends). GST may apply on premiums paid via NRO account, and TDS may be deducted unless exempted under Section 10(10D).
19.
Can an OCI take a term insurance plan in India?
Yes, an OCI can take a term insurance plan in India by meeting the eligibility criteria, which include:
● A valid Overseas Citizen of India (OCI) card ●Valid identity and residence proof (Indian or foreign) ●Completion of KYC procedures and medical checks as per the insurer’s rules.
20.
What happens if I become a resident of another country after purchasing the policy?
If your residency status changes, the policy will remain active. You need to inform the insurer and update your contact information, new country of residence, and tax residency status through required documents like a passport or a FATCA declaration.
FOR EXISTING POLICY 
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FOR NEW POLICY 
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