Term Insurance for NRIs

Benefits of Aviva India's Term Insurance Plans for NRIs

Aviva India offers several advantages to NRIs seeking a reliable term insurance plan.

• Competitive Premiums: NRIs can access high-value coverage at affordable premium rates compared to international options.
• Global Coverage: The coverage continues even if the policyholder relocates, offering peace of mind across borders.
• Simplified Application Process: Aviva makes it easy for NRIs to buy term insurance through online applications, digital documentation, and video medical consultations.
• Customizable Plans: Based on their needs, policyholders can enhance their coverage by adding riders for critical illness, accidental death, or disability benefits.
• Strong Claim Settlement Ratio: Aviva’s high claim settlement ratio ensures families can access financial support quickly and without hassle.
• Tax Benefits: Premiums paid towards term insurance may be eligible for tax deductions under Section 80C of the Income Tax Act, 1961, subject to prevailing tax laws.
• Local Support: Aviva India offers dedicated support services to help NRIs manage their policies easily, even from overseas.

Eligibility Criteria for NRIs

Non-resident Indians (NRIs), Persons of Indian Origin (PIOs), and Overseas Citizens of India (OCIs) are eligible to buy term insurance plans from Indian insurers. Generally, applicants must be within the insurer’s specified age range, typically between 18 and 60 years. A valid Indian passport, proof of NRI/PIO/OCI status, and proof of income are usually required. Some insurers may also request proof of address for overseas and Indian residents.

Medical tests may be needed depending on the sum assured and the applicant’s age. Insurance companies may also consider the country of residence when assessing risk and premium rates.

How to Apply for Term Insurance from Foreign Country

Thanks to digitization, applying for term insurance from abroad is easier than ever. Here’s a step-by-step guide to help you:

• Research Plans: Compare term insurance plans offered by Indian life insurers that allow NRI applicants.
• Select a Plan: Choose one based on your coverage needs, policy term, premium affordability, claim settlement ratio and turnaround time.
• Fill out the Application Form: Apply online by accurately filling out personal, occupational, and financial details.
• Submit Documents: Upload scanned copies of your passport, visa, address proofs, income proofs, and photographs.
• Medical Examination: Complete a medical test in India or abroad, as directed by the life insurer. Some insurers arrange medical check-ups through partner clinics overseas.
• Pay the Premium: Pay the premium online using international payment options offered by the life insurer.
• Policy Issuance: The policy will be issued digitally once the documents and medical reports are verified and the premium is paid. A soft copy of the policy document will be sent to your registered email ID.

While applying remotely is convenient, it is advisable to read all terms and consult a financial advisor if necessary.

Premium Payment Options for NRIs

Non-Resident Indians (NRIs) have multiple convenient options to pay premiums for term insurance policies in India. These methods are designed to accommodate the global lifestyle of NRIs, ensuring seamless transactions.

These options provide flexibility and ease for NRIs to maintain their term insurance policies without hassle.

Tax Benefits on Term Insurance for NRIs

Term insurance policies in India offer several tax advantages for NRIs under the Income Tax Act of 1961.

• Section 80C: Premiums paid towards term insurance are eligible for deductions up to ₹1.5 lakh per financial year.
• Section 10(10D): The death benefit received by nominees is tax-free, provided certain conditions are met.
• TDS Implications: Tax Deducted at Source (TDS) may apply to payouts not exempt under Section 10(10D). NRIs can claim credit for TDS against their overall tax liability.

It is advisable for NRIs to consult tax professionals to fully understand the implications based on their country of residence and ensure compliance with Indian tax laws.