Guide for NRI’s to buy term Insurance | PNB MetLife

Life is full of uncertainties, which makes the purchase of a life insurance policy has become highly imperative. India has emerged as an important global contributor in the world, and despite Indians staying abroad, they may have family or home here. Considering this, the context of life or term insurance for NRIs has become as critical as it is for resident Indians. Besides, NRIs are great investors in the Indian market and go a long way in its development and growth.

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What is Term Insurance?
We move through life like a roller coaster with numerous ups and downs. Insurance pays a huge role to ensure our families are always financially looked after. Term insurance is a form of life insurance where you have to pay premiums regularly for a fixed period or term so your beneficiaries can claim a specific sum assured at the time of any unfortunate eventuality. Since term insurance offers a higher death benefit at relatively lower premium payouts, many people opt to buy term insurance as opposed to other forms of life insurance policies.

Term Insurance for NRIs
The term insurance industry in India has evolved significantly and allows even NRIs to be eligible and buy term insurance. Term insurance for NRIs can be offered to them, depending on their respective needs and requirements.

Some of the pointers to keep in mind when you buy term insurance are mentioned below:

1. If you are an NRI, you can opt for either of one of the two alternatives: •    Either you opt for term insurance when you come to India and execute the same formalities as an Indian citizen would; or
   •    You purchase term insurance from your current place of residence abroad by doing mail order. This would attract a detailed verification which would be done by the Indian embassy and a notary.
2. You can opt for numerous options and plans available when you buy term insurance for NRIs. You can choose for a sum assured amount ranging from Rs.2 lakhs to Rs.1 crore and pay the premium on a pre-decided frequency dependent on your age, health, and terms. The duration of the term insurance for NRIs ranges anywhere between 5 years to 30 years. 
3. As an NRI, you can make premium payment online but need to open an account in one of the specified banks as stated by the insurance provider. Further, you can also make remittance in the currency of your choice through an NRO or NRE account. The death benefit would be payable into this selected account. 
4. It is comforting to state that if the risk involved is similar, there would be no difference in the premium paid by an NRI or an Indian citizen. 

Factors to consider before buying term insurance for NRIs
It is imperative that you carefully study your term insurance plan prior to opting for it online. 

1. Term Insurance Cost –
   There are numerous insurance providers available in India. Therefore, before buying the first plan you come across, you should carefully study it. Calculate your premium using the online premium calculator for term insurance and compare the same with other plans as well as the premium value if you opt for a provider from your resident country. See which plan is more affordable and is better valued; prior to making the right choice for you. 
2. Tax Implications –
   Term insurance for NRIs, like those for resident Indians, provide you with tax benefits. However, this amount may not be 100% tax-free. Evaluate and research on these tax implications and advantages before you opt for your provider. 
3. Claim Settlement Ratio –
   This is the ratio of how many claims have been positively settled by the insurance company against the number of claims filed. Higher the claim settlement ratio, higher the comfort you will derive from the insurer. Understanding which insurance provider has a higher claim settlement ratio along with the duration they take to settle the claim will help you make the right call. 

Term insurance is not only an attractive tool but also an effective one and should be opted for, whether you are an NRI or not. Submit the relevant documents as specified on the insurer’s websites and keep your family financially secured! Browse the website to know more about Long Term Savings, Term Insurance and the various Term Plans offered by PNB MetLife

*Tax benefits are subject to conditions and other provisions of the Indian tax laws and are subject to amendments made thereto from time to time.