Under the Foreign Exchange Management Act (FEMA), Non-Resident Indians (NRIs) as well as People of Indian Origin (PIOs), can buy a life insurance plan in India. So, if you are an NRI or PIO and are looking to purchase an affordable protection plan in India. Then, you need to be aware of the following things before proceeding with the life insurance policy purchase-
Check your eligibility
A Non-Resident Indian will be eligible to get a life cover if he/she holds a valid passport issued by the Government of India and temporarily resides in the country of his / her present residence. A person of Indian origin/ overseas citizen of India can get life insurance only if:
Cost of premiums
Usually, the premium costs are similar for both the residents as well as non-residents. However, the premium of the policy might vary depending on the applicant’s country of residence, i.e. the premiums will be high for high-risk countries and less for low-risk countries.
Note: High-risk countries are those countries that are more prone to civil or military issues and are run by an unstable government and face constant violent attacks. Low-risk countries are those countries that are peaceful and are run by a stable government along with proper law and order.
Mode of payment of premiums
Know about tax regulations
Before buying a policy in India, it is significant for the applicants to go through the tax laws for both India as well as the resident country. Policy buyers need to check for tax implications at all three stages of policy life cycle i.e. investment, accumulation, and maturity. It is important to do so because the tax regulations differ from country to country. So, you need to find out the tax regulations in the country of your residence to make an informed decision.
Know about the medical examination procedure
Buying a life insurance plan means, you need to go through several medical examinations. There are two ways in which the medical examination procedure could be conducted:
Once you are aware of all the rules and regulations, you can look for the best life insurance policy that is suitable as per your requirements.