When it comes to securing their family’s future, non-resident Indians (NRIs) are increasingly turning to term insurance plans offered by Indian insurers. This preference is driven by various factors that make domestic policies more appealing than their international counterparts. Let’s explore the reasons behind this trend and why Indian term insurance plans are the go-to choice for NRIs.
Affordable Premiums
One of the most compelling reasons NRIs opt for Indian term insurance plans is the affordability of the premiums. Compared to international policies, Indian term insurance offers significantly lower premiums. Despite recent upward revisions in premiums due to the COVID-19 pandemic, Indian rates remain highly attractive. This cost-effectiveness allows NRIs to secure substantial coverage without straining their finances.
Tailored to Unique Needs
Indian term insurance plans are designed to address the specific financial needs and obligations of the Indian diaspora. Many NRIs have outstanding debts in India, such as home loans or student loans. By purchasing a term insurance plan in India, they can ensure that these debts do not become a burden on their families in the event of their untimely demise. The payouts from these plans can be easily claimed by family members residing in India, providing much-needed financial support.
Simplified Purchase Process
Gone are the days when purchasing term insurance was a cumbersome and time-consuming process. Indian insurers have embraced a digital-first approach, making it easier than ever for NRIs to buy term plans. The entire process can be completed online, with many insurers accepting medical tests conducted overseas. This eliminates the need for NRIs to visit India solely to buy insurance. Moreover, those who frequently travel to India can conveniently purchase a policy during their visits, saving on out-of-pocket expenses.
Attractive Tax Benefits
Tax savings are another significant advantage of purchasing term insurance from Indian insurers. NRIs with taxable income in India can avail deductions on premiums paid under Section 80C of the Income Tax Act, 1961, up to Rs. 150,000 per financial year. Additionally, under Section 10(10D) of the same Act, the death benefit from a term plan is tax-exempt in the hands of the nominees. This ensures that the family receives the full payout without any tax liabilities, securing their financial future.
Ease of Claims
Claiming payouts from a foreign insurance policy can be a complex process for surviving family members in India. Navigating foreign legal systems and dealing with currency conversion issues can be challenging and time-consuming. Indian term insurance plans, on the other hand, offer a straightforward claims process. This ease of claiming benefits ensures the family receives timely financial support without unnecessary hassles.
Conclusion
The preference of NRIs for Indian term insurance plans is well-founded. With affordable premiums, tailored benefits, a simplified purchase process, attractive tax advantages, and an easy claims process, Indian insurers offer a comprehensive package that meets the unique needs of the Indian diaspora. By choosing Indian term insurance, NRIs can ensure that their families are financially protected and their obligations in India are met, providing peace of mind and security for the future.
If you’re an NRI looking to secure your family’s financial future, consider the many benefits of Indian term insurance plans. Explore your options today and take a step towards safeguarding your loved ones.