insurance policies can be obtained by NRIs from several
insurance companies operating in India. The range of products
offered by these companies cover almost every requirement,
promising security as well as returns.
plans are insurance schemes which cover risks but do not carry
any maturity benefits. They however enable the policy holder
to avail of loans to purchase property.
Linked Insurance Plans invest funds from the insurance premium
in equity and debt instruments and ensure returns to policy
holders, along with the security. NRIs have a good opportunity
to earn on their investments in unit linked plans. Endowment
ULIPs, child plan ULIPs and retirement ULIPs are common unit
linked insurance products.
cases where NRIs have their children studying in India, a
child insurance policy either through money-back, endowment or
unit linked plans can come in handy. Unit linked child plans
offer good yields over a long term of 10-15 years.
NRIs can also plan their retirement through regular and unit
linked pension plans which offer support in the retirement
life insurance, policy holders enjoy a host of tax benefits.
Apart from death claim proceeds being exempt from tax, the
premiums paid on the policy confer tax rebates under Section
80C of the Income Tax Act, 1961.
are settled at the time of maturity into the policy holder’s
NRE account proportionate to the premium received through
foreign exchange. If the payment was made entirely in Indian
rupees, claims are credited to the NRI’s NRO
case of the policy holder’s demise, claims are paid to the
nominee’s savings account in India which is not
products offered by HDFC Standard Life include: Single Premium
Whole of Life Plan, Personal Pension Plan, Unit Linked Pension
Plan, Unit Linked Pension Plus and Saving Assurance
comprehensive range of endowment, money-back and whole life
plans are extended to NRIs but the maximum sum under the pure
term insurance plans and the term rider benefits are
restricted to Rs. 25 lakh.
Amro, in a tie-up with Aviva Life Insurance offers a choice
between SaveGuard, an investment-cum-protection plan, and
Bank, in collaboration with Max New York Life Insurance,
offers Whole Life Participating Policy – Protection, Life
Protector Plus, Life Invest TM Unit Linked Investment Plan,
and Easy Life Retirement plan (Participating)
also has a range of rupee and non-rupee insurance products for
NRIs staying in the Middle East. Non-rupee insurance products
include InvestPlus Children’s Education Plan, InvestPlus
Wealth Builder Plan and the InvestPlus Lifelong Whole of Life
and Critical Illness Protection Plan
Whole Life Plan, the Flexi Life Line, a rupee insurance plan,
combines high returns with security, and comes in three
customised packages, the Protector, Builder and Enhancer Plans
which carry different combinations of investments in
government securities and equities. The Classic Life Premier
is a long term plan optimising investment with
Chartered’s life insurance portfolio also has an array of unit
linked and term insurance products: SecureFirst, Unit Gain
Plus, Mortgage Reducing Term Interest Plan, UnitGain pensions,
ChildGain, InvestGain and TermCare. Standard Chartered offers
these products in partnership with Bajaj Allianz and Royal
Life, the State Bank’s venture into insurance with Cardif,
offers a choice of saving and protection plans for NRIs-
Sudarshan, Money Back, Sanjeevan Supreme, Shield, Swadhan,
Child Plan Scholar II, Lifelong Pensions and Setubandhan
Prudential has a mix of protection and wealth creation plans.
To meet educational needs, it offers the SmartKid range of
products, while it has unit linked LifeTime and InvestShield
plans for wealth generation, and the purely protection
oriented plans like LifeGuard, Save’n’Protect, CashBak and
procedure for purchase of an insurance policy involves filling
up the proposal form and the moral hazard report, undergoing a
medical examination and paying the initial premium. These
formalities can be completed by NRIs during their visit to
India or from their country of residence through mail order.
Most forms can be downloaded from the website of insurance
the policy is being proposed from overseas, an endorsement by
the local Indian embassy is required after verification of the
applicant’s passport, though in the case of students, the Dean
or Principal’s signature would suffice. The applicant needs to
have a copy of the first page of his passport also certified
by the official attesting his policy. These documents have to
be submitted to the insurance firm.