1. How can an NRI settle claims under a life insurance plan?

As an NRI who has purchased a life insurance plan in India, you can be assured that the nominees can easily settle their claims within India.

2. As an NRI, what are the prerequisites for purchasing a life insurance plan in India?

As an NRI, you need to have either an NRE or NRO bank account to purchase a life insurance plan in India. In addition to this, you must fulfill certain verification and documentation requirements for both resident and non-resident Indians. Thanks to leading insurance companies and their online portals, you can easily perform all this digitally.

3. What happens to my life insurance plan if I change my residency as an NRI?

As an NRI, if you change your country of residence, you can easily continue your life insurance plan in India. However, make sure to inform the insurer.

4. Do NRIs opt for riders in a life insurance plan?

Yes, NRIs can opt for riders in a life insurance plan, just like residents of India. You can consider opting for riders like critical illness rider, accidental death benefit rider, waiver of premium, etc, as these help you enhance the coverage of your existing policy at a nominal charge.

5. Can NRIs living in Australia buy life insurance plans in India?

Definitely, if you are an NRI residing in Australia, you can still purchase life insurance plans from Indian insurers, online or offline, using NRE or NRO accounts, subject to identity verification and documentation requirements.

6. Are medical tests mandatory for NRIs in Australia applying for life insurance?

Medical tests are not always mandatory. However, insurers may require them based on factors like age or health conditions.

Life Insurance Plans for NRs in Australia

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As an NRI in Australia, taking care of your loved ones back at home becomes a priority. Since you cannot always be physically present, purchasing a robust life insurance policy is a smart move. From simple term insurance that is designed for pure protection to policies like unit-linked insurance plans or money-back plans, which are designed to offer a dual benefit of investment and life protection, you have a wide array of options to explore in India. To choose a plan that best suits your requirements and responsibilities, understanding all the available options is the first step.

Here are the different types of life insurance plans in India ^[5] and ^[8]:

1. Term insurance plan

One of the basic life insurance plans that provides coverage for a fixed period. These plans usually don’t offer any maturity benefits, making them more affordable. However, if you choose the refund of premium option, the premiums paid are returned on maturity. Term plans provide life coverage and pay a death benefit if the life assured passes away during the policy term. NRIs in Australia can also buy term plans in India at lower premiums and enjoy the benefit of rupee-based investments while protecting their families.

2. Endowment policy

This is a savings-oriented life insurance plan that covers the risk of premature demise and also has a maturity benefit. If the life assured passes away during the policy term, a death benefit is paid. On the other hand, if the life assured is alive when the policy matures, a maturity benefit is paid.

3. Unit Linked Insurance Plan (ULIP)

This plan offers dual benefits—life insurance coverage and wealth building. Premiums are split between life cover and investment, allowing the policyholder to participate in the financial market and earn market-linked returns. There are also the flexible benefits of partial withdrawals and switching. ULIPs are popular among NRIs, as these plans allow investments in market-linked funds, alongside providing life insurance coverage and tax benefits under Indian tax laws.

4. Money Back Policy

Similar to an endowment policy, but with periodic payouts during the policy term. These survival benefits are distributed over the policy's duration.

5. Whole Life Policy

This insurance policy offers coverage for the life assured's entire life. The policy covers the life assured up to 99 or 100 years of age. In case of death during the coverage term, a death benefit is paid. However, if the life assured survives the tenure, a maturity benefit is paid.

6. Child Plan

Child plans secure a child's financial future and often include an inbuilt premium waiver, where the insurer covers premium payments if the parent passes away, ensuring the plan continues.

7. Annuity

Annuity Plans accumulate premiums as assets and pay them out as regular income (annuity) or a lump sum after retirement, based on the policyholder's preferences.

Buying a life insurance plan for NRIs in Australia is a straightforward and structured process that enables you to protect your family in India while you reside abroad. Here’s how you can complete the entire process digitally:

Step 1 – Compare and Choose the Right Policy.

Identify your financial goals, such as financial protection, savings, or market linked investment. Compare different plans such as term, endowment, and ULIP plans offered by Indian insurers. Focus on plans that provide global coverage, affordable premiums.
Step 2 – Verify NRI Eligibility.

Before applying, confirm that your residency and nationality meet the insurer’s eligibility criteria. Most Indian insurers accept applications from NRIs, Overseas Citizens of India (OCIs), and Persons of Indian Origin (PIOs) residing in Australia.
Step 3 – Prepare Required Documents.

Gather the essential identification and financial documents requested by the insurer. This includes submitting a duly filled proposal/application form along with the required declarations. Medical information or examination reports must also be provided if requested during the underwriting process.
Step 4: Complete medical requirements (if needed)

Medical tests can be conducted at approved centers in Australia, with reports sent directly to the insurer. Some insurers may offer telemedical assessments.
Step 5: Review underwriting decision and proceed with premium payment

After receiving the underwriting decision and final premium details for the selected life insurance plan, you can confirm the terms and make the premium payment. Payments can be made through NRE/NRO/FCNR accounts or permitted foreign remittance options.
Step 6 – Receive Policy Confirmation.

After the underwriting approval and successful payment of the premium, the insurer issues the policy documents. Once issued, the life insurance coverage applies worldwide, including Australia, and the policy benefits are payable in the currency specified in the policy document.