ABSLI Salaried Term Plan For NRI

If you are purchasing a term insurance plan in India as an NRI (Non-Resident Indian), you will be required to submit the following documents to the insurance company:
• Duly filled application form
• Attested copy of passport and visa
• Medical tests and reports
• Age proof certificate
• Proof of residence
• Income proof papers
• Last Entry-Exit Stamp
• Any other documents requested by the insurer

• Purchasing The Policy From Your Country Of Residence
You have the flexibility to buy the term insurance policy comfortably from your current place of residence, and this can be facilitated through mail order. The process involves thorough verification conducted by Indian embassy officials, an Indian diplomat, and/or a notary. Furthermore, the introduction of tele-medical checkups has streamlined the online purchase of a term insurance policy, offering a hassle-free experience for NRIs residing anywhere globally. By scheduling a video or telemedical checkup, you can efficiently complete the underwriting process from your country of residence.
It is crucial to thoroughly review the policy documents and conduct comprehensive research to make informed decisions.

2. Premium Payment
Indian insurance companies provide multiple premium payment options for term insurance policies catering to NRIs. Premiums can be conveniently paid through the following modes -
• Non-resident ordinary nature account (NRO)
• Non-resident external bank account (NRE)
• Foreign currency non-repatriable account (FCNR)
It is essential for NRIs to verify the currency in which the term insurance policy is issued. If the policy is denominated in a foreign currency, premiums will have to be paid in that specific currency from an NRE/FCNR account. Conversely, if the policy is issued in Indian rupees, premiums will have to be paid through an NRO account.

3. Payout Made By The Insurance Company
Similar to premium payments, the death benefit from a term insurance policy is disbursed in the currency specified on the policy document - either in rupees or foreign currency. Following the standard protocol of any regular insurance policy, the nominees of the NRI are required to submit the necessary documents in accordance with the policy terms to facilitate the claim payment process - in case of a claim. The insurance company will typically request documents such as the original policy document, identification proof of the nominee, the death certificate of the insured person, etc.

What Are The Benefits Of Buying Term Insurance In India?
Here are some compelling reasons why purchasing a term insurance plan in India is considered beneficial:
• Multiple Customisation Options Available
Term insurance in India provides a myriad of customisation options, empowering you to tailor a policy that precisely aligns with your and your family's specific needs. Here are some ways in which you can customise your term insurance policy -
• If you wish to customise your premium payment schedule according to your preferences, such as completing payments within a specific timeframe, like 10-15 years, you have the flexibility to opt for a limited pay option.
• If you want your term insurance coverage to grow over time, you can select the increasing cover feature.
• If you want to structure the payout to your family in monthly instalments rather than a lump sum, you can customise that as well.

• Death Is Covered Globally
With the exception of suicides within the first year of policy purchase, a term insurance policy purchased in India provides coverage for all types of deaths worldwide. In the unfortunate event of suicide during the first year, the insurer will return the premium paid to the nominee. However, for death occurring after the first year, regardless of the location, your family will receive the claim amount as per the policy terms and conditions. This ensures that the coverage extends globally, offering financial protection to your loved ones regardless of where your demise occurs.

• Protection Under Section 45
In accordance with Section 45 of the Indian Insurance Act, if a life insurance policy remains in force continuously for three years, an insurance company cannot investigate or reject a death claim on any grounds. This provision enhances the appeal of a term insurance policy in India, especially for NRIs, as it essentially ensures a payout to the family in case of the life insured’s demise after three years of continuous coverage within the policy period - as long as timely premium payments are made.

• Tax Advantages
Tax benefits* can be availed on premiums and the claim amount under the Income Tax Act of India, 1961, if you are filing taxes in India. Below are the tax benefits available if you buy a term insurance policy in India.
• A key tax advantage of term life insurance is associated with the premiums paid toward the policy. Premium is basically the amount you need to pay to the insurance company to keep the term insurance policy coverage active. According to Section 80C, you are entitled for tax deductions of up to Rs 1,50,000 for the premiums paid annually for the term insurance plan.
• Additionally, the death benefit received by your nominee in case of your unfortunate demise during the policy period is tax exempted under Section 10(10D) of the Income Tax Act#. This ensures that the financial security offered by the term insurance policy remains exempt from tax, offering greater peace of mind.
It is crucial to highlight that tax advantages* are based on the conditions outlined in Sections 80C and Section 10(10D) of the Income Tax Act, 1961. Furthermore, these benefits are subject to amendments periodically, underscoring the importance for NRIs to stay abreast of the dynamic tax landscape.