Term plans for Non-Resident Indians (NRIs) & OCI/PIO are designed to provide financial protection to the policyholder's family. 
 

Term plans from Tata AIA Life doesn’t have any geographical barriers; NRI/OCI can buy term insurance either during Visit to India or buy online from country of residence.
 

Eligibility and Documentation
 

NRI’s, OCI/PIO & foreign nationals having a valid work visa in India are eligible to buy term plan; Subject to residential underwriting. 
 

Necessary documents for a term plan include passport Copy, Immigration pages of passport foreign address proof & Income Proof and OCI Card / other substitutes  or visa copy to establish their relationship with India are mandatory documents were ever applicable Pan card is required only if mandatorily required by provisions of income tax act. 
 

NRI/OCI term plans may need Medical Examination basis Age, Insurance cover required, Past medical history lifestyle and job specifications. 
 

Factors to be considered before Buying Life insurance. 
 

Policy Cost

As an NRI, you should compare the costs of policies offered by different companies both in India and your country of residence. Factors such as the sum assured amount, premium rates, premium payment frequency, and additional riders should be considered while evaluating policy costs.
 

Payment of Premium

NRIs & OCI/PIO have the opportunity to pay insurance premium from any of their preferred accounts & modes Indian accounts including Non-Resident Ordinary (NRO) Account, Non-Resident External (NRE) Account or Foreign Currency Non-Repatriable (FCNR) Account as NEFT/RTGS or Cheque/ DD Etc or from a foreign bank account in foreign currency denominations as SWIFT. It is important to consider the payment modes offered by insurance providers 
 

Tax Deductibility

NRIs & OCI/PIO can gain tax benefits* on the premium paid for term insurance policies under Section 80C of the Income Tax Act in India. Additionally, you can receive tax-free maturity and death benefits under Section 10(10D) of the same act.
 

Tata AIA Life InsurancePlans for NRIs & OCI/PIO
 

Tata AIA Life Insurance offers a range of plans designed for NRIs & OCI/PIO, including the popular Sampoorna Raksha Supreme:
 

Benefits of NRI & OCI/PIO Term Insurance Plans
 

Term insurance for NRIs & OCI/PIO functions similarly to regular term plans in India. The policyholder pays premiums to the insurance company in exchange for a life cover (sum assured). In case of untimely demise during the policy tenure, the sum assured amount is paid to the beneficiary/nominee. There is also an option for term insurance ROP (Return of Premium), where all premiums are returned if the policyholder survives till maturity. 
 

Depending on the insurance provider, NRI term insurance policies may offer the following benefits:
 

• High life cover at affordable rates: NRIs can obtain high life coverage by paying comparatively low premium rates.
• Video or tele-medical check-up: Policyholders can schedule telemedical check-ups from their residential country while purchasing NRI term plans in India.
• Coverage for terminal illnesses: Terminal illness coverage provides lump-sum payouts upon diagnosis.
• Long-term coverage: Term insurance for NRIs offers extended coverage, with some plans even providing coverage up to 99 years.
• Limited pay benefit: NRIs can opt for limited pay benefits where premiums are paid for a specified period while the life cover remains intact throughout the policy tenure.
• Accidental death benefits: Additional protection in case of accidental death is available by adding an Accidental Death Benefit rider.

Purchasing NRI Term Insurance in India
 

Options for Purchasing Term Insurance

As an NRI, you have two options for purchasing term insurance: either while visiting India or from your country of residence
 

Policy Tenure and Coverage

When purchasing term insurance as an NRI in India, you can choose from various policy tenures up to age 100, depending on your current age and the insurer's guidelines.
 

Why Choose Term Insurance from India
 

• Large number of insurers: India has numerous life insurance providers offering different types of term insurance plans with high life cover at affordable rates.
• Claim Settlement Ratio (CSR) & Express claim: Many Indian insurers offer good CSR percentages, indicating reliability and credibility. For instance, Tata AIA's individual death claim settlement ratio^^ is 99.01% FY22-23 and has express claims^~ which are settled under 4 hours ^~T&C Apply^~
• Affordable premium rates: NRI term insurance policies in India offer highly affordable premium rates compared to many other countries.
• Hassle-free procedures: The process of purchasing a life insurance plan is usually simple and hassle-free
• Easy claim process: Purchasing NRI term insurance from an Indian insurer ensures hassle-free claim settlement, without the need to travel during claims.
   

Conclusion
 

When considering purchasing term life insurance as an NRI in India, it is essential to understand eligibility criteria, compare policy costs from different insurers, consider available benefits and tax advantages, and choose a reputable insurance provider with a good claim settlement ratio. Purchasing term insurance in India can offer NRIs some key benefits, such as the option to purchase term plans online or while visiting India, high life coverage at affordable rates, telemedical check-ups, and hassle-free claims. By following the guidelines provided above, you can make an informed decision while selecting a term insurance plan optimised for your needs.