A Term Plan for NRI can be bought for the family & the self to fulfil the financial requirements irrespective of the place of residence. In this plan, the policyholder is required to pay the premium amount to get themselves covered. In any unfortunate event, the beneficiary will receive the death benefit to repay their debts or liabilities, if any. The amount of coverage received can be used to make payments in order to maintain the standard of living.
One should consider the mentioned things before buying Term Insurance for NRI:
- NRI individuals can also choose to buy a term plan with a return of premiums. In TROPs, the death benefits are provided on their death, but if they survive, they will also receive all the premiums paid as maturity benefits.
- An NRI can purchase a pure-term plan, which offers extensive coverage, providing death benefits but no maturity benefits to secure their family.
- Before proceeding with buying, it is mandatory that an Indian Diplomat & a notary should verify.
- However, an NRI does not need to be present in India when the policy is bought; he needs to get his medical tests done & submit the report. It can be done from their country of origin or via tele or video medical facility provided by the insurance provider.
- A valid copy of the Pan card must be provided in order to claim a deduction of tax u/s 80C of the Income Tax Act. This can only happen when they are in India.
Term Insurance Calculator for NRIs
It is an online tool that calculates the premium amount to be paid by an NRI towards the term plan bought. This calculator considers multiple factors while calculating the premium amount, such as age, gender, annual income, lifestyle habits, etc. This calculator helps calculate the premium amount required to be paid to the insurance company against the financial security they will offer. It also helps to calculate the amount of sum assured required, ensuring that the amount is enough to meet future financial obligations.
Let us know the steps that should be followed to calculate the premium amount in case of NRIs:
Step 1: Visit the Term Insurance Calculator page & provide some basic details such as name, gender, age, contact number, etc.
Step 2: Click the tab “View Plans” & answer some basic questions like:
- Annual Income
- Lifestyle habits
- Educational qualifications
- Occupation Type
Step 3: Next, provide the details related to the plan, such as
- Policy Tenure
- Life Coverage Amount
- Mode of Premium Payment
- Term of Premium Payment
Step 4: Add the riders available (optional)
- Terminal Illness Cover
- Accidental Death Cover
Step 5: Once all the details are submitted, the term plan calculator will provide the term plan that best suits your requirements. From this, you can compare the different plans available & choose one to buy.
Factors Affecting the Premium Amount
Provided are the factors affecting the premium amount:
- Gender
Normally, women have a higher life expectancy than men, & hence, as men are more prone to risks, they are charged higher premiums.
- Age
The younger the person, the lower the premium, as they are less prone to diseases & have longer life expectancies.
- Lifestyle Habits
If you have high-risk hobbies such as skydiving, scuba diving, mountaineering, etc., it will lead to high premium costs.
- Medical Conditions
In case of any pre-existing health condition, the premium would be on the higher side. Also, some insurers get a health assessment done to get the health assessment done before the plan is bought.
- Sum Assured
In case of a high coverage amount, the premium amount also increases, as the financial responsibility of the insurance company also increases.
- Premium Payment tenure
If you opt for a shorter policy tenure, you will have to pay a high premium. On the contrary, if a longer tenure is chosen, the premium cost will decrease, but the total cost might increase.
Benefits of Term Insurance Calculator for NRIs
Provided are some of the benefits of a term insurance calculator for NRIs:
- Helps Choose the Right Cover & Plan
It will help calculate the life coverage amount of the term insurance required to meet future financial obligations. It also helps calculate the premium amount & choose one amongst the options offered.
- Helps Saving Cost
This calculator is available free of cost on the company’s website, which helps to calculate the premium amount.
- Helps Saves Time
It enables an NRI to buy a term plan while sitting in the comfort of their resident country as the processes have now changed from physically visiting to online mode. When the plan is selected online, it can be bought directly without any help from agents or intermediaries.
- Helps Compare Different Plans
The term plan calculator for NRIs will provide a list of term plans that best suit their requirements. After which, they can compare the plans & choose one that best suits their premium & coverage requirements. This helps make an informed decision on the desired lifestyle.
- Helps in Financial Planning
It helps calculate the level of term insurance rates that are to be paid on a periodic basis. Once the premium amount is determined, you can plan the financial budget, hence enabling financial planning.
Conclusion
The NRIs can buy a term plan to avail themselves of wealth creation benefits & provide financial security to their family members. Before buying a term plan, one should assess the needs of the term plan, analyse its financial objectives & compare different plans available on the basis of premium, sum assured, CSR, policy tenure, & benefits offered.
A term plan calculator is an online tool which simplifies the process of selecting a term plan, calculating the premium amount, comparing different available plans, & obtaining financial security. Also, it helps you make informed decisions & choose a plan as per your requirements.
