NRIs to buy insurance from india | Best options for nris to buy insurance India

NRI insurance plans Indian insurance policies offer NRIs flexible options like insurance-cum-investment plans, including child plans, to secure their family's future. These plans provide essential financial security and peace of mind, especially for NRIs managing finances from afar.

As our world becomes more globalised, Indians continue to find new avenues to move abroad – some for studies, others for work or business. These NRIs, however, are often presented with a unique situation where they might juggle financial responsibilities across borders. However, with the recent steps taken by the government and the insurance regulator in India, they have now got a lot of flexibility when it comes to buying insurance to secure their family’s future.

This is the reason, perhaps, behind the rising trend of NRIs buying insurance policies from India. Apart from being more affordable, Indian insurance plans come with attractive additional features that are designed while keeping in mind the requirements of Indians - both resident as well as non-resident. For instance, the insurance-cum-investment plans offered by Indian insurance companies are a great option for NRIs to use as a tool for financial planning that suits their specific needs.

Insurance-Cum-Investment Plans for NRIs

These plans offer a unique blend of insurance protection and wealth accumulation, thereby serving as a crucial tool for financial planning. By combining insurance with investment, these plans secure the financial future of the policyholder’s family while also growing their funds over time.

Especially for NRIs, the child plans in this category make perfect sense as they ensure wealth creation and a protection net for the policyholder’s dependents. Considering the kind of exorbitant education fee that NRIs need to accumulate, these plans are a must-have. In fact, these plans come with a valuable waiver of premium feature that ensure the continuity of plan even in policyholder’s absence.

Understanding Waiver of Premium

The way these plans work is that the policyholder needs to pay the insurance premium periodically to keep the policy intact. Unfortunately, if the policyholder passes away, the dependents struggle to pay premiums on time and maintain the policy.

This is where WOP, or Waiver of Premium, benefit comes to their rescue. If opted, this feature ensures that the premium payments are waived off in the event of policyholder’s untimely death. The future premiums are borne by the insurer and the policy benefits continue as they were.

The WOP benefit becomes even more crucial in the case of insurance-cum-investment plans, where the intention is to build a corpus for major milestones and life goals of dependents. Insurance-cum-investment plans offer NRIs a compelling means to ensure financial security for their families compared to other alternatives. These plans effectively support dependents in the policyholder's absence. Should the policyholder pass away, the life cover provided to the family addresses immediate expenses. While the waiver of premium option takes care of the future premiums, some plans also come with the Income Benefit option that provide the dependent with a regular income for daily expenses.

Child plans: The safety shield for NRIs

For goal-based investing for children, child plans in the insurance-cum-investment space are a great option. These plans are a robust safety shield and a solid investment strategy as far as financial planning is concerned. They help you allocate funds for life’s milestones like child’s higher studies or wedding expenses or any other liabilities.

Considering the mounting rate of inflation, child plans are also a valuable addition to your term insurance plan to adequately secure the future of your child. While a term insurance policy helps cover the financial obligations in case of policyholder’s unfortunate death, an investment plan will continue in their absence and continue to generate returns for the future.

The waiver of premium feature provides additional crucial support by passing on the responsibility of premium payments to the insurer. Not only for NRIs with dependents in the country of residence, these are greatly beneficial for those who have dependents in India as well. The added feature of WOP ensures that all this planning is foolproof and is not interrupted in any unforeseen situation.

Since NRIs might also be geographically far from their families, the WOP feature gives them peace of mind by making sure that their investment plans will remain unaffected even if they are no longer around to manage them. While this feature benefits every individual, it is even more crucial for the NRIs since they often face challenges in coordinating financial planning across borders. It’s, however, important to compare options, prices and benefits and also understand the details from your insurer before making a choice.

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