Are you keen to know whether NRIs should purchase life insurance in India? Now, let’s first understand the insurance landscape that currently prevails in the country. There are several insurers in the Indian market who offer financial security to NRI, hence a prevalent query nowadays is, ‘Is LIC good for NRIs?’. These insurance policies not only offer a variety of features like flexibility and premium payment terms but also benefits like illness riders, accidental death covers and 18% GST waiver. Remember, insurance is a financial safety net for you and your loved ones in India.
NRIs Purchasing Life Insurance in India: Understand the Benefits
In general, we all know why life insurance is important for NRIs. Most NRIs, who have financial dependents or significant assets in India or if they are planning to settle in India in the near future, can consider buying LIC plans in India. To avail the benefits and financial needs of families in case of an unexpected tragedy such as a premature death, life insurance policies in India provides an essential safety net.
Now, some buyers may ask, “Can NRIs buy life insurance in India?” The answer is “Yes, NRIs can.” However, it is important for NRIs to thoroughly understand the eligibility requirements and tax implications.
Benefits of Buying Life Insurance Policy in India for NRIs
Let’s now unveil the benefits of life insurance policies for NRIs:
Safety cover for the family in the untimely death situations
Lower life insurance premiums in India compared to those in many countries
Flexible payment options for NRIs in foreign currency through their NRE accounts
High sum assured and returns
Is NRI Taxable for Life Insurance Maturity Amount?
Life insurance policy for NRIs by the insurers in India will cover the death benefits irrespective of the location anywhere in the whole world. Also, the benefits and earnings from a life insurance policy in India are tax free for both death and maturity.
Now, we will explore some insights on the tax benefits. NRIs who buy life insurance policies in India can avail the benefits of tax deductions and exemptions on the paid premiums under ASection 80C of the Indian Income Tax Act, 1961.
Should NRIs Buy Health Insurance in India?
Being an NRI, it is a financial safety net when you purchase any health insurance policy in India, be it for yourself, family or parents. This ensures a safety cover in the event of sudden demise. Keep renewing your policies and opt for a total family’s health cover as it serves your long term financial planning as well.
A key factor to keep in mind is that this policy will cover hospitalisation expenses only if the treatment is done in the Indian boundaries. Also, it allows them to enjoy tax saving up to Rs. 55000.
Is Life Insurance in India Valid if You Move Abroad?
Residing in or moving to another country does not affect the insurance policies taken in India. It will proceed if the premiums will be paid continuously. But, the point to remember is that health insurance does not work outside India.
In a nutshell, NRI life insurance policy offers numerous benefits so it's a win-win choice for NRIs. They can enjoy the tax savings plus safeguard their family’s financial security. Plenty of online NRI insurance plans are also available, so you can check out the best plan from the comfort of your home. Make sure proper research is undertaken before taking a final decision.
