Whether you reside in India or abroad, your financial responsibilities towards your family remain unchanged. Securing your family’s future against unforeseen circumstances is crucial for everyone, and life insurance plays a vital role in achieving this goal.
For Non-Resident Indians (NRIs), life insurance serves as an ideal financial tool that addresses various needs, such as ensuring financial security for loved ones, legacy planning, tax* savings and more.
Types of Life Insurance Plans for NRIs
Life insurance for NRIs can be categorised into the following types:
Term Insurance
Term insurance is a pure protection life insurance policy available for NRIs in India. It guarantees a death benefit to the plan’s nominee in the unfortunate event of the NRI's demise.
Whole Life Insurance
Whole life insurance for NRIs in India offers life coverage that extends throughout the life of the NRI. It ensures uninterrupted financial security for their family and provides lasting peace of mind for the NRI.
ULIPs – Unit Linked Insurance Plans
A ULIP combines the benefits of investment and life insurance. This plan enables policyholders to invest in a variety of equity, debt, and hybrid funds, tailored to their financial goals, while also providing life cover to secure their loved ones.
Endowment Insurance Plans
An endowment insurance plan provides a low-risk method to save for the future. These plans offer fixed returns at the end of the policy term and help you achieve your financial goals. Additionally, they include a life cover that ensures financial protection for your loved ones in your absence.
Money Back Insurance Plans
Money back insurance plans provide returns at regular intervals throughout the policy term. Alongside these periodic returns, they also include a life cover to safeguard your loved ones financially in the event of an unfortunate incident.
Child Insurance Plans
Child plans are a unique type of life insurance policy in India for NRIs. These plans help parents invest for their child’s future needs, such as higher education while offering financial protection to the child in the absence of the parents.
Retirement Insurance Plans
Retirement insurance plans are designed to save for your retirement years by providing a structured way to build steady stream of funds. These plans also include a life cover that ensures financial security for your family in the event of your absence.
ICICI Prudential offers various NRI Life Insurance Plans to suit your different needs
ICICI Pru iProtect Smart
- Purchase policies from abroad with video medical (VMER)
- Save up to 65%** on premiums with the limited pay option
- Health Cover against 34 critical illnesses (optional)##
- Accidental Death Benefit up to ₹ 2 crore (optional)9
- Smart Exit feature to get all the premiums back°
ICICI Pru GIFT Pro
- Guaranteed^ income for both short-term and long-term needs
- Earn tax* benefits on both premiums paid up to 1.5 Lakh p.a. and incomes received
- Increasing income or level income options¶ to suit your needs
- Get up to 103% of your premiums1 back anytime between maturity date and last income payout date
- Add-on Waiver of Premium3 option, in case of financial inability caused by an accidental death or disability
IN ULIPS, THE INVESTMENT RISK IN THE INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER
ICICI Pru Signature Online
- Long-term wealth creation through market growth
- Global life coverage/ to financially protect your family
- Partial withdrawals can be made post the 5-year lock in~ period
- 22 diverse funds` available with free unlimited switching5
- Earn tax* benefits on both premiums up to 1.5 Lakh p.a. and earnings
W/II/0846/2024-25
Benefits of Buying Life Insurance Plans for NRIs
Below are some benefits of life insurance for NRIs:
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Global Coverage
Life insurance offers global coverage to NRIs. This ensures that regardless of your location, the policy will ensure that a payout is received by your loved ones in your absence.
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Life Cover of Your Choice
You have the flexibility to choose a life cover that meets your family’s needs and replaces your income. You can select insurance plans based on your family’s specific lifestyle requirements.
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Wealth Creation
In addition to life coverage, many life insurance plans also offer opportunities to save or invest your money to achieve future goals. These plans contribute to wealth creation over time and enhance your financial well-being.
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Easy Payments
Life insurance for NRIs can be conveniently purchased online, and the premium can be paid from anywhere in the world through online payment modes. Moreover, you have the option to choose from annual, semi-annual, or monthly payments according to your needs. Some plans also allow for a single premium payment option.
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Risk Management
Living abroad can bring uncertainties, such as job switches and lifestyle changes, that can add to your financial liabilities. Purchasing life insurance for your loved ones back home during such times can offer peace of mind, ensuring they remain financially secure regardless of your circumstances.
Tax* Benefits for NRIs Investing in Life Insurance Policy in India
Investing in life insurance in India offers several tax* advantages for NRIs, including:
Tax benefits on premium
NRIs can claim a deduction of up to ₹ 1.5 lakh on the premium paid for life insurance policies in a financial year subject to conditions under Sec 80C of the Income Tax Act, 1961Tax benefits on payout
The insurance benefits received on maturity or death are exempt subject to conditions under Sec 10(10D) of the Income Tax Act, 1961
How to Choose the Right Life Insurance Plan for NRIs?
Below are some steps for choosing the right life insurance plan:
Assess your Life Insurance Goals
Assess your Life Insurance Goals
With various types of life insurance plans designed for different financial goals, it is essential to assess your specific needs. This ensures you select a plan that not only protects your loved ones but also helps you achieve your financial objectives.
Compare Plans
Compare Plans
Comparing insurance plans allows you to evaluate costs, features, tenures and more. This comparison helps you choose a plan that offers the best combination of benefits suited to your needs.
Calculate the Optimal Insurance Cover
Calculate the Optimal Insurance Cover
Determining the right coverage amount is crucial to meet your family's financial needs. You must consider factors such as outstanding debts, family goals and lifestyle to arrive at an adequate coverage figure. You can also use an online insurance calculator.
Select the Correct Policy Term
Select the Correct Policy Term
It is important to choose a policy term long enough to safeguard your loved ones against potential adversities. You can consider your age and the ages of your dependents to determine a suitable tenure for your plan.
Evaluate Tax* Implications
Evaluate Tax* Implications
Life insurance plans offer tax* benefits that can help you save money. Make sure to consider these tax advantages when making investment decisions to ensure optimal financial planning.
Conclusion
Life insurance for NRIs offers protection for policyholders and their families, regardless of where they reside. With global coverage and seamless protection, life insurance can safeguard NRIs and their families against various financial adversities. Moreover, with a wide range of options available for NRIs, these policies can be tailored to achieve multiple financial goals.
Make sure to analyse your needs, assess your financial goals and compare different plans to ensure they are the best fit for your situation.
Frequently Asked Questions
What are the requirements to apply for life insurance?
Requirements for NRIs are similar to those for Indian citizens. NRIs need to submit a copy of their age proof, address proof, identity proof, passport, medical history, income proof, etc. for KYC purposes. If NRIs provide a valid Form 10F and Tax Residency Certificate (TRC) then there will be no deduction of Tax at Source (TDS).
Can NRIs pay premiums in foreign currency?
Yes, NRIs can make premium payments in a foreign currency.
What happens if an NRI returns to India permanently after purchasing a life insurance policy abroad?
The policy may remain the same or be altered if the NRI returns to India. The exact changes will depend on the terms and conditions of the policy.
Can NRIs claim life insurance benefits from abroad?
Yes, NRIs can claim life insurance benefits from abroad.
Is a medical examination required for NRIs buying life insurance in India?
Yes, a medical examination is required to purchase life insurance in India. However, NRIs can choose to get the test done in their country of residence and then share the reports with the insurance company in India.
What are the different premium payment modes available that NRIs can use?
There are many ways for NRIs to pay their life insurance policy premiums. NRIs can either pay from their regular bank’s debit or credit card in the currency of the country they are currently residing in. Alternatively, NRIs can also pay from their Non-Resident Ordinary (NRO) and Non-Resident External (NRE) accounts.
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Disclaimer
*Tax benefits under the policy are subject to conditions under Sections 80C, 10(10D), 115BAC and other provisions of the Income Tax Act, 1961. Goods and Services Tax and Cesses, if any will be charged extra as per applicable rates. Tax laws are subject to amendments from time to time. Please consult your tax advisor for more details.
COMP/DOC/Jul/2024/177/6702
ICICI Pru iProtect Smart
**The percentage saving computed is purely in terms of premium paid over the term (Difference between 5 years Limited and Regular pay) of the policy and does not account for time & other factors that may happen during this period. It is one of the many features that the product offers, and you can opt for it based on your individual needs. The percentage saving is for ₹1 crore life cover for a 24-year-old healthy Male (occupation: non-salaried) for a policy term of 61 years with lump sum payout option. The monthly premium for 5 years for limited Pay option will be ₹7,464. The monthly premium for regular Pay option will be ₹1,769. The premium amounts are inclusive of taxes.
##Accelerated Critical Illness benefit (ACI benefit) is upto 1 crore (Subjected to underwriting guidelines). Accelerated Critical Illness Benefit (ACI Benefit) is optional and available under Life & Health and All in One option. This benefit is payable, on first occurrence of any of the 34 illnesses covered. Medical documents confirming diagnosis of critical illness needs to be submitted. The benefit is payable only on the fulfilment of the definition of the diagnosed critical illness. The ACI Benefit, is accelerated and not an additional benefit which means the policy will continue with the Death Benefit reduced by the extent of the ACI Benefit paid. The future premiums payable under the policy will reduce proportionately. If ACI Benefit paid is equal to the Death Benefit, the policy will terminate on payment of the ACI Benefit. To know more in about ACI Benefit, terms & conditions governing it, kindly refer to sales brochure. ACI Benefit term would be equal to policy term or 30 years or (75-Age at entry), whichever is lower.
9Accidental Death benefit (ADB) is up to ₹2 crores (Subjected to underwriting guidelines). ADB is available in Life Plus and All in One option. In case of death due to an accident Accidental Death Benefit will be paid out in addition to Death Benefit. Accidental Death Benefit will be equal to the policy term or (80-Age at entry), whichever is lower.
°The policyholder will have an option to cancel the Policy and receive Smart Exit Benefit, equal to Total Premiums Paid under the Policy. The following conditions are applicable for availing Smart Exit benefit:
- This option can be exercised in any policy year greater than 25 but not during the last 5 policy years, provided the age of the life assured is 60 years or more at the time of exercise.
- The Policy is in-force with all due premiums paid at the time of exercising this option.
- No claim for any of the underlying benefits has been registered and is under evaluation/ or accepted/ or paid/ being paid on the Policy.
- Where, Total Premiums Paid means the total of all premiums received, excluding any extra premium, any rider premium and taxes. In case the benefit term for additional benefit(s), for which additional premium has been paid, has expired at the time of exercise of Smart Exit Benefit, then Total Premiums Paid shall exclude the premium paid towards such additional benefit(s). Please refer to sales brochure for more details.
ICICI Pru iProtect Smart. UIN: 105N151V12
ICICI Pru GIFT Pro
^Guaranteed Benefits will be payable subject to all due premiums being paid
*Tax benefits/Tax-free returns under the policy are subject to conditions under Sections 80C, 10(10D), 115BAC and other provisions of the Income Tax Act, 1961. Goods and Services Tax and Cesses if any will be charged extra as per applicable rates. Tax laws are subject to amendments from time to time. Please consult your tax advisor for more details.
¶Level Income and Increasing Income are income options available under GIFT Pro. Guaranteed Benefits will be payable subject to all due premiums being paid. Under Level Income, the Guaranteed Income will remain constant throughout the income period. If Increasing Income is selected, the Guaranteed Income will increase at a simple interest rate of 5% p.a. You can either opt for Level Income or Increasing Income option. This option has to be selected at inception and cannot be changed later.
1You can choose to receive any percentage from 0% to 100% of the sum total of all annualized premiums payable by you as MoneyBack Benefit. This will be paid as a Lump sum amount. Additionally, you also have the flexibility to choose any year, on or after the maturity date of the policy up to the last income year, to receive this MoneyBack Benefit. Your Guaranteed Income amount will be adjusted based on the MoneyBack Benefit % and payout year selected by you.
3Waiver of premium rider when attached to a base policy will waive all future premiums payable under the Base Policy including any Underwriting Extra Premiums on the occurrence of the contingent event, as mentioned under the chosen Benefit Option. Kindly refer to the sales brochure of ICICI Pru Linked Waiver of Premium Rider for further information.
ICICI Pru GIFT Pro UIN: 105N201V04
ICICI Pru Signature Online
/ Life Cover is the benefit payable on the death of the life assured during the policy term.
5Switches are only applicable for fixed portfolio strategy and not applicable for other portfolio strategies.
*Tax benefits under the policy are subject to conditions under Section 80C, 10(10D), 115BAC and other provisions of the Income Tax Act, 1961. Goods and Services Tax and Cess (if any) will be charged extra as per prevailing rates. Tax laws are subject to amendments made thereto from time to time. Please consult your tax advisor for more details.
`Past performance is not indicative of future performance.
~The Linked Insurance Products do not offer any liquidity during the first five years of the contract. The policyholder will not be able to surrender or withdraw the monies invested in Linked Insurance Products completely or partially till the end of the fifth year.
- Linked insurance products are different from the traditional insurance products and are subject to the risk factors.
- The premium paid in linked insurance policies are subject to investment risks associated with capital markets and publicly available index. The NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market/publicly available index and the insured is responsible for his/her decisions.
- ICICI Prudential Life Insurance is only the name of the Life Insurance Company and ICICI Pru Signature Online is only the name of the linked insurance contract and does not in any way indicate the quality of the contract, its future prospects or returns.
- Please know the associated risks and the applicable charges, from your insurance agent or intermediary or policy document issued by the insurance company.
- The various funds offered under this contract are the names of the funds and do not in any way indicate the quality of these plans, their future prospects and returns.
ICICI Pru Signature Online UIN:105L177V06