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Financial planning for future security comes as second nature to an average Indian, irrespective of where they might be based out of. And with good reason – considering India never had the luxury of a centralised social security cover, it is only fair to think and plan ahead for any unforeseeable event.
This now holds more true after the deadly global pandemic, which has forever changed our relationship with death – an event that earlier seemed certain but far-off, has now become a more imminent reality.
Therefore, a robust term insurance cover is considered to be a staple investment for NRIs, especially those who might be staying away from their family, but want to ensure financial stability even in their absence.
The good news is that the process to obtain a term insurance policy from India has now been made easier for non-resident Indians (NRIs). When the pandemic hit, stricter underwriting norms came into play. The prospective policyholder needed to undergo physical medical examination before a policy could be issued.
This essentially meant that NRIs could no longer buy a policy from India, owing to travel restrictions and health risks. However, the world is almost back on its feet today and normalcy has been resumed almost everywhere. With this, norms for buying term insurance have been relaxed for NRIs, and the plans have become more accessible basis telemedical check-ups. That’s not the only perk; buying term insurance from India is far more affordable for them.
Also read: Use NRO account for family expenses and NRE account for investments
Here’s why NRIs should consider buying a term plan from India:
Cost-effective plans
One of the most significant reasons for NRIs to purchase a term plan from India is that it comes with a price difference of at least 50-60 percent, especially when compared to developed countries. For instance, a term insurance plan bought from the UAE or Singapore would result in a 40-50 percent higher premium than in India.
Considering the long shelf life of the plan, the subsequent savings in premium over time can make a substantial difference in the amount you pay in India versus anywhere else. The best part is that this affordability comes with the benefits and features that specifically cater to the Indian consumer.
Since the plans available elsewhere might have been designed to cater to that particular country, NRIs might not find a plan that meets all their requirements. On the other hand, they can opt for riders and features that best suit their needs, at the best price.
Also read: Five common mistakes to avoid while buying term insurance
Easy accessibility through telemedical check-ups
Another important aspect that makes buying a term policy from India attractive is the ease of accessibility that transcends geographical limits, especially in the backdrop of the rising popularity of telemedicine and video check-ups since COVID-19.
Telemedicine has since maintained its momentum and is widely used now to obtain insurance policies, thereby eliminating the need for physical presence as a pre-requisite. Therefore, for NRIs, it is a positive development, as now they do not have to keep stalling this crucial decision until their next visit to India.
Instead, they can buy a term insurance policy from anywhere, online. They can look for a favourable plan online, fill out the application form, and make the payment through internet banking or credit/debit card. In addition, many Indian and international cards/accounts also offer hassle-free payment procedures.
Once the basic formalities are completed, the insurer schedules a video or telemedical check-up. For telemedical insurance, the process comprises tele-underwriting, under which a certified doctor from the insurance corporation makes a call to understand the customer’s current medical history and state.
This is based on the information shared about the medical history of the prospective policy buyer and documentation of pre-existing medical problems and chronic diseases. Then, the medic asks the necessary questions to measure the health conditions and lifestyle habits. In response, the prospective buyer is expected to share authentic information and make a declaration about the health conditions over the phone or video call.
Following these steps precisely is crucial for a smooth claim settlement. After submission and acquiring an all-clear signal, the application for the desired policy gets accepted for issuance.
In conclusion, for NRIs, term insurance bought in India offers everything they need under one umbrella. Thus, it is suggested that NRIs compare various available term insurance policies, their features, available riders, and claim settlement ratios online before buying a comprehensive insurance plan.
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