Term Insurance for NRIs in India: Features & Benefits

Terms insurance is a type of life insurance that provides coverage at a fixed rate of payments for a certain period of time. Term insurance offers financial protection to the family of the policyholder in case of death. As Indian citizens, NRIs (Non-Resident Indians) are also eligible to buy term insurance in India. Term insurance policy for NRIs generally has tenure from 6 months to 25 years. In this article, we will discuss term insurance for NRIs in India. 

Also Read: NRI Health Insurance: The Ultimate Guide 2021

Best NRI term insurance plans

Term insurance policies vary in terms of premiums payable and maturity periods. Here are some of the major companies for term insurance in India. NRIs can compare the features and benefits of term insurance plans offered by different companies.

ICICI Pru iProtect term insurance for NRIs

ICICI Bank offers ICICI Pru iProtect term insurance for NRIs that provides financial protection for both the policyholder and his/her family. The plan has a host of optional benefits that you can select as per your specific needs. 

Features and benefits of ICICI Pru iProtect term insurance

• This comprehensive term insurance plan can be purchased online.
• This plan offers comprehensive coverage against critical illness, death and disability. 
• Users can enjoy the benefit of tax exemption under Section 80C of the Income Tax Act. 
• Policyholder can choose from the three different payment options i.e. monthly income, lump-sum and increasing income. 
• Instant life insurance cover.
• Affordable premiums.
• Additional payout on death due to accident. 

Eligibility criteria

• Age: 20 years to 65 years
• Minimum premium paid: Rs. 2,000 + service tax and education cess
• Policy term: 10 years, 15 years, 20 years, 25 years and 30 years. 
• Maturity age: 75 years

Kotak Mahindra E-term 

Kotak Mahindra E-term insurance plan is a complete risk cover life insurance plan that provides financial protection to your family in case of your death. 

Features and benefits of Kotak Mahindra E-term insurance

• Low-cost insurance plan that offers high coverage at affordable premiums.
• The cover can be increased through the step-up option.
• Three payout options to choose from – Immediate payout, Level recurring payout and Increasing recurring payout.
• Three variants are available – Life, Life Plus and Life Secure.
• Special premium rates to female and non-tobacco users.
• Tax benefits under Section 80C of the Income Tax Act for premiums paid.

Eligibility criteria

• Age: 18 years to 65 years
• Minimum sum assured: Rs. 3 lakh – Rs. 24,99,999 lakh
• Maximum sum assured: No limit
• Policy term: 5 years to 30 years. 
• Maturity age: 70 years

Bajaj Allianz Term Insurance Plan – iSecure For NRI

Bajaj Alianz term insurance plan for NRIs offers a level term cover for a high sum at a minimal cost. You can buy this plan to protect your family against an unforeseen financial crunch. 

Key features and benefits of Bajaj Allianz Term Insurance 

• You can select a policy term based on your requirements. 
• In case of death of the policyholder, the sum assured is offered, provided the premiums are up to date. 
• The nominee can get the death benefits in EMIs (Equal monthly instalments) over a period of 5 to 10 years.
• Frequency of premiums can be altered. 
• Single applicants can include their spouse on a later date in their existing policy. 
• Flexibility in premium payment option so that you can meet the recurring expenses of your dependents. 
• Premiums paid are eligible for tax benefits under Section 80C of the Income Tax Act (ITA). 
• Death benefits are also eligible for tax exemption under Section 10(10D) of the Income Tax Act. 

Eligibility criteria 

• Age: 18 years to 60 years
• Minimum sum assured: Rs. 2.5 lakh for the general category and Rs. 20 lakh for applicants categorised as preferred non-smokers, non-smokers and smokers
• Maximum sum assured: No limit
• Policy term: 10 years, 15 years, 20 years, 25 years and 30 years 
• Maturity age: Maximum 70 years

Amulya Jeevan Term Insurance for NRIs

LIC (Life Insurance Corporation of India) offers Amulya Jeevan term insurance policy for NRIs. The policy will not be valid if the insured commits suicide and the policyholder can’t question the policy after 2 years of the expiry of the policy. 

Key features of Amulya Jeevan term insurance

• In case you are not satisfied with the policy, you can cancel and return the policy within 15 days of buying it. 
• Sum assured is payable in case of death of the insured. However, the policy should be in force at the time of death. 
• You can get tax benefits under Section 80C of the Income Tax Act for the premiums paid and for death benefit under Section 10(10D). 
• Loans will not be available to the insured under this plan.  

Eligibility criteria

• Age: 18 years to 60 years
• Minimum sum assured: Rs. 25 lakh
• Maximum sum assured: No limit
• Policy term: 5 years to 30 years 
• Maturity age: Maximum 70 years

Many Indian companies offer NRI term insurance that can be bought and managed online. Term insurance is less expensive than traditional life insurance plans, hence it can be an ideal choice for NRIs. 

Also Read: NRI Life Insurance Policy: Which one to opt?

At SBNRI, we understand that there are many obstructions faced by NRIs while trying to buy term insurance in India. You can download SBNRI App to connect with our experts and get end-to-end assistance related to insurance policies for NRIs.

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