What Are the Premium Payment Options for NRIs Under Term Insurance?

Picture a safety net that protects you and your loved ones from life's uncertainties - that's precisely what term life insurance does. It offers financial security, preserving your and your family’s dreams and aspirations, even when life takes an unexpected turn. And here’s the good part- as an NRI (Non-Resident Indian), you have the option of investing in term insurance in India! Distance shouldn't prevent you from securing your family's future. Term insurance caters to the needs of NRIs living abroad to enable them to offer financial security to their loved ones back home.
But what about premium payment options for NRIs under term insurance? Rest assured, there are multiple convenient ways for NRIs to pay their premiums. Regardless of where you are in the world, you can effortlessly ensure that your term insurance remains active, and your family stays protected.
How? We’ll discuss this in the article…

Understanding Term Insurance

By buying a term plan, you are making a crucial decision to secure the financial well-being of your loved ones in case something unexpected happens to you. In the event of your unfortunate demise during the policy period, the insurance company will provide your family with a sum of money, commonly referred to as the 'sum assured.' This amount will essentially serve as a replacement for your income. Your family will receive this money based on the claim payout option you selected when purchasing the policy. Term insurance provides pure risk coverage, meaning that if you survive until the end of the policy term, it will not provide any benefits to you.

Understanding NRI Term Insurance Premium Payments

To ensure that your term insurance coverage remains active, it is essential for you to make periodic premium payments to the insurance company. These payments serve as the lifeline of your policy, providing the promised financial support in the form of the sum assured to your family in the unfortunate event of your demise during the active period of your policy.
It is essential for NRIs considering term insurance to have a clear understanding of the premium payment options and frequency.

• Premium Payment Frequency: Insurance providers typically offer the flexibility to customise your premium payment frequency according to your preferences. Generally, you have the convenience of selecting from four options, as mentioned below:

• Yearly Premium Payment Option: With this option, you only need to pay the premium once a year.
• Half-yearly Premium Payment Option: Here, you will have to make the premium payment term, with a gap of six months between each payment.
• Quarterly Premium Payment Option: This option requires you to pay the premium four times a year, with a three-month interval between each payment.
• Monthly Premium Payment Option: With this option, you will need to make the premium payment every month, resulting in twelve payments throughout the year.

• Premium Payment Options: Insurers in India offer you several options to select from when it comes to premium payments. You can conveniently make payments through the following avenues:

• Non-Resident Ordinary (NRO) Account: The NRO account serves as a dedicated platform for saving and managing your Indian earnings in Indian currency. It is specifically designed to cater to the needs of NRIs who earn income in India. With this account, you have the flexibility to deposit funds in either Indian or foreign currency, while withdrawals from this account can only be made in Indian currency.
• Non-Resident External (NRE) Account: NRE accounts are designed for saving or depositing foreign earnings in India, in Indian currency. Only income generated from a foreign country can be deposited into NRE accounts, while income earned in India cannot be held in NRE account. Withdrawals from NRE accounts are made in the currency of the NRI's resident country.
• Foreign Currency Non-Repatriable Account (FCNR): You have the option to pay term insurance premiums from your FCNR account, which is specifically designed for NRI's holding foreign currency deposits. The FCNR account allows you to deposit or save your foreign currency earnings in the currencies permitted by RBI. All deposits and withdrawals made in this account are in foreign currency.

Please note that the terms and conditions can vary from insurance company to insurance company.

Looking For Term Insurance?

You can consider buying the following plans: 1.ABSLI Salaried Term Plan [UIN: 109N141V03]^$
ABSLI Salaried Term Plan lets you customise the plan according to your specific needs, offering both lump sum and monthly income options. Whether it's securing your child's education, maintaining your lifestyle, or meeting daily expenses, this pure-risk term plan is designed to provide unwavering financial support.

Some of the key features of the plan

• Choose from a diverse range of 4 plan options to match your unique protection needs perfectly.
• Select from versatile options for death benefit payouts, whether you prefer a lump-sum or monthly income.
• Additional protection with the inclusion of an inbuilt terminal illness benefit.

2.ABSLI DigiShield Plan [UIN: 109N108V13]^***
With this term insurance plan, you can ensure that your loved ones are financially secure from the uncertainties of life. No matter what stage you are in life or what financial liabilities you have, the ABSLI DigiShield Plan has your and your family’s back.
Key features of the plan:

• Choose from 10 plan options.
• Option to choose a policy term of up to 100 years of age.
• Flexibility to customise the claim payout.

Wrapping Up!

The importance of selecting the right term insurance premium payment option cannot be overstated. It is a decision that holds the key to ensuring the uninterrupted protection of your coverage. Fortunately, there are various options available, offering you the flexibility to choose a method that perfectly aligns with your preferences and circumstances. Take the time to thoroughly research and evaluate each plan and payment method, considering your financial objectives and lifestyle. By doing so, you can confidently pave the way for a secure future, knowing that you have made an informed choice tailored to your needs.