Why Insurance Before Investment?
Both insurance and investment are essential for your financial well-being. Insurance is considered to be crucial as it can be an assured way to help you go through the unfortunate events that life may bring on you.
Life is unpredictable. Tragedies can happen anytime, turning everything upside down. Therefore, before you start your investment journey, you must ensure your financial foundation is in place.
Listed below are some of the risks that UAE NRIs may fear:
Sudden job loss & deportation
Unlike the permanent residents, NRIs mostly work on an employment visa. So, a major worry that you may face is that losing your job could mean immediate repatriation. Such a situation can be a real nightmare.
Family dependence in India
Another concern that most NRIs, who are so far away from home, have is that if something happens to them, who would look after their loved ones? A critical illness or the passing away of the primary earner can be devastating for the family.
With these fears and concerns hovering over your head, it is only prudent to find a life insurance policy that proves useful under various scenarios. And when it comes to finding the right policy, one of the first steps is to choose the right life insurance company. The right life insurer can be a blessing in disguise, especially at a time when your family is emotionally strained.
How do Insurance Plans Align With NRI Goals?
Multiple plans based on financial needs
As an NRI in the UAE, your insurance needs may be unique. So, whether you have just begun your career or are planning your retirement in some time, there would be a plan that aligns with your needs and preferences.
For example, someone seeking pure coverage can choose term insurance, whereas someone who wants assured benefits along with protection, an endowment plan can be more suited.
Wealth creation
You also have the flexibility and freedom to combine investments and insurance. Unit Linked Insurance Plans, better known as ULIPs, are a great option for high-income NRIs who wish to make the most of the booming Indian economy. Even being miles away from home, you can achieve long-term goals like your children's education or maybe your retirement planning.
Retirement planning
As an NRI in the UAE, your retirement can be a pressing issue. Being an expatriate, a structured pension system may not be in place for you. In India, an insurance plan can act as a reliable tool to build your post-retirement income stream.
With options like deferred annuity plans, whole life policies, and endowment plans, you can systematically build a retirement corpus.
Earn in AED, pay premium in INR
UAE currency, the United Arab Emirates Dirham (AED), is stronger than the Indian Rupee (INR). As a result, you would have the advantage of higher purchasing power. When you have to buy a life insurance plan in India, you can get suitable coverage at affordable premiums.
Furthermore, you will also have the convenience of paying your premiums using your NRO (Non-Resident Ordinary) or NRE (Non-Resident External) bank accounts. Since these accounts are held in INR, they make it easy for you to transfer earnings from abroad and manage payments back in India without any trouble.
You don’t need to be in India to buy Indian insurance
Another benefit that you can get is that you don’t require to fly back home to buy life insurance. All the formalities can take place online, as the company offers a smooth and secure digital process. You can easily compare plans, complete documentation, and even make payments, all from the comfort of your home.
Conclusion
Indian life insurance policies can offer you an affordable and effective way to shield your family. The right coverage can help you manage your cross-border obligations while laying the groundwork for future goals, so it is essential to secure your peace of mind. The ideal financial journey often begins with one smart step insurance.
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