Yes, they can. As an NRI, a bunch of questions about life insurance policy must be bouncing in your head. So, here are a few quick answers to all the important questions one by one:
1. Is Being Present in India Compulsory for Buying a Life Insurance Plan?
Not necessarily, although it may differ from company to company. The best way to go about buying life insurance for an NRI is going online. That way, you can compare all available options to find the best plan and buy it instantly from the comfort of your current residence. However, there may be certain additional costs in such cases. For instance, if you purchase the policy from abroad, you would have to do the medical examination and send the report to the insurance company in India. However, if you are present in India at the time of buying the policy, the insurer can conduct the required medical check-ups.
2. What are the Documents Required to Buy the Insurance?
An NRI will have to provide standard KYC documents like identity proof, address proof, age proof, passport, form for proposal/application form, medical documents (if required), income proof etc.
3. Will my Application be Affected by my Country of Residence?
Yes. Every life insurance company keeps a close eye on the country that you are currently residing in. A low-risk country will have a stable government without many issues of civil/military unrest than a country where there is economic or social turmoil. If you reside in the latter kind of country, there are high chances of your application being rejected or you may be asked to pay a higher premium. If not, then there is no need to worry about your application.
4. What is the Mode of Payment for Premiums?
An NRI can pay the premium of a life insurance policy via NRO or NRE/FCNR bank account. Both have different demands- if you have bought the insurance in a foreign currency, you have to pay the premium via FCNR/NRE account (in denominated foreign currency), if not then you have to settle the premium via the NRO account.
5. What About the Pay-Out Made by a Life Insurance Company?
Just the way payment for premiums depends on how did you buy your insurance, the same way you will get the benefits of the insurance via the currency (Indian/foreign) listed in the policy document. But do remember the list of mandatory documents will vary from insurer to insurer.
The information provided in this article is generic in nature and for informational purposes only. It is in no manner can act as a substitute for specific advice in your own circumstances. We Strongly recommend you to seek professional guidance pertaining to your query or doubt.
India is a vast country and a mystery to most. Those who live in it, those who now live outside of India or those who are just visiting. We, at NRIClub™, serve as a centralized hub of information for the residents, non-residents and travellers who are not familiar with various aspects of this great country. We are a unique, online portal providing all of the information to our users that could be relevant to them.
India is a vast country and a mystery to most. Those who live in it, those who now live outside of India or those who are just visiting. We, at NRIClub™, serve as a centralized hub of information for the residents, non-residents and travellers who are not familiar with various aspects of this great country.
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