Life Insurance Plans for NRIs (Non-Resident Indians)

Life insurance is one of the most preferred investment options in India. Be it resident Indians or NRIs (Non-Resident Indians), securing a life insurance policy should be one of the primary financial management steps for everyone. While there are many options for resident Indians, NRIs can purchase life insurance plans which are exclusively designed to fulfill their requirements. As an NRI, you should purchase a plan which would secure the future of your loved ones and protect them in your absence. Before buying a policy, you must compare the features of life insurance plans for NRIs. 

Life Insurance Plans for NRIs (Non-Resident Indians)
Life Insurance Plans for NRIs

Also Read: Why NRIs need life insurance policy in India?

Life insurance plans for NRIs

Here are the key features of life insurance plans for NRIs:

Insurance policyEntry ageSum assuredPolicy termMaturity age
Max Life Insurance18 years to 60 years– Min: Rs. 25 lakh 
– Max: No limit
5 to 35 yearsMaximum 70 years
Birla Sun Life Insurance1 year to 60 years– Min: Rs. 2 lakh
Whole life to the age of 100 years
Kotak Preferred Term Plan18 years – 65 years– Min: Rs. 25 lakh
– Max: No limit
5 to 40 years– Min: 23 years
– Max: 75 years
Kotak Term Plan18 years – 65 years– Min: Rs. 3 lakh to Rs. 24,99,999 lakh
– Max: No limit
5 to 30 yearsMax: 70 years
Life insurance plans for NRIs

Features & benefits of life insurance plans for NRIs offered by top insurers 

Max Life Insurance for NRIs

Features & benefits

 Here are the features and benefits of Max Life Insurance for NRIs:

  • NRI, PIOs (Persons of Indian Origin) and foreign nationals can purchase the Max Life Insurance policy. 
  • You can get tax benefits for the premiums paid under Section 80C of the Income Tax Act. Death benefits are eligible for tax deductions under Section 10 (10D) of the Income Tax Act. 
  • NRIs can pay the initial premium in Indian Rupees (INR) through NRE/ NRO account or in a foreign currency equivalent to the INR through SWIFT.
  • Remittance of bonus and maturity proceeds are made in INR. 
  • Maturity proceeds, claims or the value of policy can be easily repatriated outside India. 

Exclusions: 

  • The policy will be void if the insured dies as a result of suicide. 
  • The policy will be void if the insured indulges in dangerous activities. 
  • In case of a war, the policy will not cover the individual. 
  • Consumption of drugs and alcohol and involvement in illegal activities will nullify the policy cover. 

You can get an add-on cover for the Max Life Insurance:

Monthly Income Term Plan: It offers twin benefits of sum assured on death and level of income for every month for 10 years.

Max Life Comprehensive Accident Benefit Rider: This plan provides you with additional protection in case of any unfortunate event. 

Birla Sun Life Insurance for NRIs

Birla Sun Life Insurance offers the Vision Life Income Plan for NRIs to help them fulfill growing responsibilities.

Features & benefits 

Here are the features and benefits of NRI life insurance policy by Birla Sun Life:

  • Death benefits and the sum assured under the iProtect Option I.
  • Under the iProtect Option II, you get the sum assured plus the Accidental Death Benefit. 
  • Instant Life Insurance cover. 
  • You can get tax benefits for the premiums paid under Section 80C of the Income Tax Act. You can also get benefits under Section 10 (10D) and Section 80D of the Income Tax Act for death benefits received. 
  • 5% of sum assured guaranteed along with the bonus every year after you have finished the premium payment term. 
  • It provides a whole life cover to the insured and his/her family till the age of 100.
  • You can also get the suitable Rider options for additional protection for a nominal cost. 
  • You can add a nominee who will get the Death Benefits in case of your death. 
  • If there is no nominee, the legal heirs will be deemed as the beneficiaries. 

Exclusions

  • The policy will be declared void if the insured commits suicide within one year from the date of commencement of the policy. 
  • If you provide incorrect information, the policy will be terminated and you will be paid the surrender value. 

Kotak Life Insurance for NRIs

Kotak offers Kotak Preferred Term Plan and Kotak Term Plan for NRIs to invest in India. Features and benefits of Kotak NRI life insurance plans are as under: 

Features of Kotak Preferred Term Plan

  • High level of protection at a nominal cost. 
  • Options to opt between Immediate or Recurring Payout. 
  • The level of cover can be increased or decreased as per your requirements. 
  • Female and non-tobacco users can get preferred rates. 
  • Flexibility in premium payment options. 

Features of Kotak Term Plan

  • High level of protection at a nominal cost. 
  • The level of cover can be increased or decreased as per your requirements. 
  • Female and non-tobacco users can avail special rates. 
  • Flexibility in premium payment options. 
  • Certain products can be converted into Kotak Life Insurance plans, excluding term plans before the last 5 years of the policy term.

You can get tax benefits for the premiums paid under the Section 80C of the Income Tax Act. Death benefits are eligible for tax deductions under Section 10 (10D) of the Income Tax Act. 

Kotak offers Optional Rider plans as under

  • Kotak Critical illness benefit: A share of the sum assured is paid in case of a critical illness claim. 
  • Kotak Accidental Death Benefit: Lump sum benefits can be availed on accidental death. 
  • Kotak Permanent Disability Benefit: Upon the admission of claim of a permanent disability, payments are made in instalments. 
Top 6 Retirement Mistakes made by NRIs

Living away from India, it is not easy for NRIs to make a decision related to life insurance. At SBNRI, we understand that there are many obstructions faced by NRIs while trying to buy life insurance in India. You can download SBNRI App to connect with our experts and get end-to-end assistance related to an NRI life insurance policy.

You can also click on the button below to ask any questions. Visit our blog and YouTube Channel for more details.

Ask Indian Friend Now

FAQs

Can NRIs buy insurance policy in India?

Yes, NRIs can purchase an insurance policy in India. Many insurers provide NRI life insurance services in India. To buy insurance, NRIs need to submit proof of residence, ITR and other related documents based on the policy. Persons of Indian Origin (PIOs) can share documents establishing their relationship with India. 

Can NRI purchase an insurance policy online?

Yes, NRIs can buy insurance plans through an online platform. However, it depends on insurance providers. Hence before applying for insurance, confirm with the insurer you are applying for a life insurance plan from. Fill an NRI insurance application online and upload a scanned copy of the passport and other required documents. 

What is the sum assured for NRI life insurance plans?

Sum assured for NRIs term plans can vary from insurer to insurer. For example, the sum assured by Max Life Insurance starts from Rs. 25 lakh and sum assured under Kotak Term plan ranges from Rs. 3 lakh to Rs. 24,99,999 lakh. 

Copy link