nri investment in life insurance in India
Though you are miles away from India, there is still a strong attachment to your country. Though you are away from your homeland, you can still avail the benefits of insurance from any corner of the world. You can build up your investments while taking care of your family’s needs and requirements. You can buy any policy of your choice, which ranges from Endowment, Money-Back, Term, Pension to Unit Linked products. Insurance is helpful for the following:
- Financial security to cover the risk on your life.
- Financial security for couples.
- Insurance plans to guarantee education of your children.
- Insurance plans to provide enough money for your daughter’s marriage.
- Insurance plans to take care of your post-retired days through pension and other retirement schemes.
- Insurance plans to provide periodical payments to meet special needs during lifetime.
- Plans for Housing Loan from LIC Housing Finance Ltd. to build your dream house.
Non Resident Indian (NRI) Life Insurance FAQ
Can NRIs invest in a Life Insurance Policy?
Yes, NRIs can invest in Life Insurance Policies issued by Insurance companies registered in India. The Policies are Rupee denominated and the premiums and claim amounts are payable in Indian Rupees.
What are the laws in India governing investment by NRIs in Life Insurance Policies?
Investments by NRIs in Life Insurance Policies in India are governed by the regulations issued by the Reserve Bank of India (RBI). These regulations are known as the ‘Life Insurance Manual’ which is a part of the Exchange Control Manual issued by the RBI. The Insurance Regulatory and Development Authority (IRDA) does not specifically regulate issue of insurance policies to NRIs. No specific approval is required for this purpose.
How will the medical tests be done?
Medical tests can be done by you at the time your visit to India. The costs of such medical tests will be borne by the insurance company. In case you intend to carry out the medical tests abroad, the same has to be carried out by a Doctor with a minimum qualification of an M.D. or its equivalent. The costs of such tests will have to be borne by you.
I have taken an Insurance Policy when I was a resident in India. I have now shifted permanently to a foreign country. What happens to my insurance policy?
Your insurance policy continues to be in force so long as the premiums are being paid regularly. A Surrender / Maturity or Death claim on such a policy will have the same treatment as explained above. Upon intimation to insurance company, your status will be changed from a resident Indian to an NRI. However the communications will continue to be sent to your address in India.
If I return permanently to India in future, what happens to my insurance policy?
Your insurance policy continues to be in force and will continue to be treated as an NRI Policy so long as the premiums are being paid regularly. A Surrender / Maturity or Death claim on such a policy will have the same treatment as explained above. Upon intimation to insurance company, your status will be changed from an NRI to a resident Indian.
Once I have taken a Policy, whom do I communicate with for any service requirements?
You can approach us (Neo Investments) for any of your service requirements like change of address, nominations, premium payments, claims etc.
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