In a world that knows no borders, NRIs are increasingly turning to India's robust health insurance offerings, and the reasons are as diverse as the diaspora itself. Investing in life insurance in India holds a treasure trove of benefits for NRIs, strategically positioning financial well-being and future security. Let's delve into the compelling advantages that make this choice a prudent move for global Indian citizens.
Cost-effective health insurance premiums:
Health insurance premiums in India offer a stark contrast to those in many developed countries. The exorbitant cost of medical treatment abroad, notably in the US, translates into sky-high premiums. In India, however, a family of four can secure coverage of Rs. 20 lakh for a modest annual premium of Rs 70,000-80,000. NRIs stand to benefit immensely from this cost-effectiveness, ensuring comprehensive health coverage for their loved ones.
Ensuring financial security:
Health insurance isn't merely a financial instrument; it's a lifeline for the family in the face of unforeseen circumstances. NRIs, often with financial dependents in India, can rest assured that health insurance provides a robust safety net for their family's medical and financial security throughout the circumstances.
Regulatory flexibilities and cost reduction:
Recent regulatory flexibilities have made health insurance in India even more attractive for NRIs. The regulator, in collaboration with the Ministry of Finance, introduced a policy enabling NRIs to purchase life and health insurance policies in India without GST. This substantial cost reduction, a waiver of 18%, becomes an attractive point for NRIs, especially when payments are made through their NRE accounts.
Affordable premiums and high returns:
Health insurance premiums in India stand at a considerable advantage compared to their global counterparts. NRIs seize the opportunity to secure a higher sum assured for their family's protection at relatively low premiums. Additionally, certain health insurance policies offer high returns, adding a lucrative dimension to their investment.
Flexible payment options:
NRIs enjoy the convenience of paying life insurance premiums in foreign currency through their NRE/NRO/FCNR accounts. This flexibility ensures a hassle-free payment experience, aligning with the convenience that global citizens seek in managing their finances.
Diversification of investment portfolio:
Life insurance in India provides NRIs with an invaluable tool for diversifying their investment portfolio. This is particularly beneficial for those heavily invested in their country of residence, offering a strategic avenue to balance their investment risks and returns.
Access to varied insurance products:
NRIs gain access to a diverse spectrum of life insurance products in India, often not available in their country of residence. This extensive array empowers NRIs to tailor their health insurance policies to meet their unique needs, ensuring a personalised approach to financial planning.
Tax benefits for NRIs:
NRIs embracing life insurance in India unlock a gateway to tax benefits. Section 80C of the Income Tax Act, of 1961, offers deductions on premiums paid. Furthermore, the maturity and death proceeds are tax-free, subject to certain conditions, providing NRIs with a tax-efficient avenue for securing their family's future.
In conclusion, life insurance in India emerges not just as a financial tool but as a guardian of legacy for NRIs. Cost-effectiveness, tax benefits, flexible payment options, and diverse product offerings make this a compelling choice for NRIs seeking to fortify their family's financial future across borders.
