Relocating to another country for further studies, work, or other reasons, is a significant task. There are many things you need to be mindful of. Alongside important matters about the new life as an NRI and the new place, there are concerns about the existing aspects of your life that demand your attention. Among the important questions bothering you while taking this big leap, are the issue of financial security and the financial protection of your family.
Other common stress points include questions such as:
What will moving to another country and becoming an NRI do to my investments and LIC policy or any other insurance cover?
Will my insurance cover secure my family if I become an NRI and
What if something happens to me in a foreign land?
Truth to be told, do not worry; the good news is that your existing term policy cover will remain unaffected even when you become an NRI by moving temporarily or permanently to another country. The policy in which you have invested will continue to protect you as an NRI as it protects any policyholder’s life, as long as the premiums are paid as per schedule. The protection, of course, will be in Indian rupees and will be defined by the terms and conditions of the policy you have invested in.
There are various benefits extended to you even when your status changes to an NRI, which completely depends on the type of policy you have invested in. Typically, these policies cover term insurance, whole life insurance, endowment policy, money-back policy, ULIPs, etc. for NRIs.
Step-by-step Guide: How to update Contact Information, Nominee Details
There are a few things that you would need to do to ascertain that your insurance policy cover remains unaffected while moving abroad:
Update contact information: When you become an NRI you need to update the new address and contact information with your insurer for seamless communication.
Nominee details: Required details of the nominee should also be duly provided so that there are no challenges faced in dealing with your insurer in case a mishap occurs.
Pay the premium on time: Most importantly, pay the defined premium of the policy as per the terms of the policy to keep the cover valid.
Insurance for NRIs: Define Nominee, Complete Documentation and Tax Formalities
You should also take it upon yourself to research and inform the person mentioned as the nominee and your family members, about the documentation and formalities which are required for the settlement process. The documents and formalities may vary according to the country of residence of the NRI. Also, you should find out the tax implications of the LIC policy you hold; it may vary in accordance with the nature of the policy and provisions under the Income Tax regulations in India. Keep yourself updated on any regulatory changes that may have an effect on your policy cover.
Even after researching how shifting to another country will affect your LIC policy cover, it is perfectly normal to have numerous questions and doubts. In this scenario, it is recommended to consult an expert on insurance policies to help you address all your queries.
When you move to another country, you will eventually invest in an insurance policy designed according to the regulations of the country of residence. Having a valid cover is the most important aspect in your journey ahead and keeping a close tab on it is just as essential.
