Director of Probus Insurance, Rakesh Goyal, said that formalities for someone buying policy abroad would be a little lengthy.
The country of residence matters as the eligibility to buy a given policy and premiums depend upon it.
He pointed out that premiums would be higher in a country with political instability.
“Insurers have a list of countries in which their services are not available,” he added while emphasising on the need to carefully finalising the companies before buying the policy.
Necessary requirements
While some insurers may provide lifetime policies, some might conduct telemedical exams. So, one must submit the relevant documents.
For tests done outside India, generally, the costs have to be borne by the individuals, said Varun Gupta, chief & appointed actuary, Bharti AXA Life Insurance.
Payment of premium
Premium of policies issued in Indian currency can be paid through a non-resident ordinary (NRO) account. While, if it was bought through foreign currency, premium can be paid for via NRE, FCNR account, SWIFT transfer or an international credit card.
Although, inherently, Gupta highlighted, NRIs have their families living in India make sure that the premium is paid through insured’s bank account in India.
Premiums fixed or variable?
Gupta points out that premiums mostly do not vary for Indian residents or non-residents. Premiums, Gupta mentioned, are based post evaluation of risks involved in insuring an individual -health, finance and country.
He said that premiums for NRIs living in countries with higher risk to life would naturally be higher.
Benefits
Once term policy is bought, any insurance company in India will cover death irrespective of the residential country of the NRI.
Gupta added that taxes and tax benefits also vary based on the tax laws in the country the customer resides in.
