1. Are there any additional charges for purchasing a life insurance plan as an NRI living in Kuwait?

Typically, life insurance companies do not charge any additional fees just because you are an NRI. However, depending on the insurance company and the type of policy you opt for, the premiums may vary. There are certain specific prerequisites that you need to fulfil to purchase a life insurance plan in India. Just like resident Indians, you would also have to pay handling and management charges subject to the life insurance plan opted.

2. What happens to my life insurance plan, if I change my country of residence?

If you change your residence as an NRI, your life insurance plan typically continues without any problem. Make sure to inform your insurer well in advance.

3. As an NRI in Kuwait, do I get tax benefits under the Income Tax Act?

Yes, as an NRI in Kuwait, you can get tax benefits under the Income Tax Act . The maturity benefits provided under a life insurance plan are tax-free under section 10(10D) subject to conditions. Additionally, the premiums paid towards a life insurance plan are typically liable for tax deduction under section 80C under old tax regime.

4. How can an NRI in Kuwait make payments for life insurance plans in India?

Usually, to purchase or invest in a life insurance plan in India, an NRI needs to open an NRE or NRO account for payments. There are certain life insurance companies that provide an option of making payment through net banking for a seamless experience.

5. As an NRI in Kuwait, what should I consider before buying life insurance from India?

Remember that choosing a life insurance plan requires you to first know your financial goal, your family's needs and your responsibilities. Once you have a clear picture of these, you can explore different plans to find the one that offers appropriate coverage and comes at affordable premiums.

Life Insurance Plans for NRIs in Kuwait

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Choosing a life insurance plan requires careful exploration of the options and alignment with your financial goals and personal needs. As an NRI in Kuwait, you have numerous options in India with promising benefits:

Here are the different types of life insurance plans in India:

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 premiums 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 Kuwait 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 cover 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/Pension Plan

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.

Purchasing a life insurance plan for NRIs in Kuwait is a straightforward and simple process. Once you have identified your financial goals you can follow these steps to buy an NRI life insurance policy in Kuwait from India.

Step 1 – Shortlist Reputed Indian Insurers Offering NRI Policies.

Begin by researching Indian life insurance companies that provide coverage to NRIs residing in Kuwait. Visit their official websites to verify eligibility criteria, available plans and policy terms. Prioritize insurers with dedicated NRI service desks, secure online purchase options and a record of handling overseas customers.
Step 2 – Compare Policy Types and Features.

Evaluate the type of life insurance plan you want. You can consider term insurance, ULIPs or endowment policies based on your goals. For example, choose term insurance if your priority is high coverage at low premiums, or a ULIP if you want life cover with the potential to create wealth through market linked investment. Use online comparison tools to assess sum assured, premium payment options, claim settlement ratio and add-on riders.
Step 3 – Complete the Online Application and Submit KYC Documents.

Once you have selected a plan, fill out the proposal form accurately and submit it along with the required self-attested documents
Step 4 – Undergo Medical Examination (if required).

If medical tests are applicable, the medical reports are attached to the proposal for underwriting. The insurer then carries out an underwriting review based on the proposal details and medical findings before taking a decision on policy issuance..
Step 5 – Pay Premiums and Receive the Policy Document.

The Insurer will communicate whether your application is approved or rejected. If approved, pay the premium using your NRE or NRO account, or through an international bank transfer via SWIFT. After successful verification and payment, the insurer issues a soft copy of your policy document. You can track policy status, renewals, and claims through the insurer’s online portal from anywhere in the world.