Buying Life Insurance Digitally: Start to Finish
When purchasing life insurance as an NRI in Australia, you first need to meet required eligibility criteria and keep the required documents ready. Here’s how a life insurance plan can be purchased:
Find the Right Plan
When purchasing a life insurance plan, remember not to follow the one-size-fits-all approach. Ensure you assess your financial needs, the requirements of your loved ones, and other relevant factors to determine the type of life insurance plan you need. You also need to determine the amount of coverage you require.
Keep Your Documents Ready
Purchasing life insurance for NRIs in India requires having certain documents as specified by the Insurer ready to ensure a seamless policy issuance. Please verify the updated list of documents provided by your insurer and keep them handy.
Fill out the Proposal Form
Once you have found the right plan, you can visit the official portal of the respective insurance company and fill the proposal form with the relevant details and documents.
Make the Payment
To complete the application process, wait for underwriting to review the proposal and share the approval, if approved make the payment. As an NRI in Australia, you can use your non-resident external (NRE) or non-resident ordinary account (NRO) to make the payment.
Did You Know that you can get GST exemption for payments made using an NRE account, towards purchasing a life insurance plan in India?
Australian Medical Tie-Ups
Keep in mind that purchasing life insurance may require you to undergo a medical examination. Medical examination for NRIs in Australia is hassle-free. Here are some options you can consider:
Medical Check-Up During India Visit
You can arrange a medical checkup through your insurance company if you plan to visit India.
Telemedical Check-Up
Many insurance companies are now allowing telemedical check-ups through video conferencing. Be sure to check with your respective insurance company to see if they allow telemedical checkups.
Medical Check-Up in Australia
You can undergo a medical check-up in Australia in an authorised medical facility recommended by the insurer. The medical reports can then be shared with the insurance company in India to complete the application process.
NRE/NRO Account Premium Payment
You can make the premium payment through an NRE/NRO account or through swift transaction. As an NRI living in Australia, you must understand what NRE and NRO accounts are:
Non-Resident External or NRE Account:
An NRE account is primarily used to deposit funds earned overseas. Foreign currency deposited in an NRE account is automatically converted to INR, which facilitates the use of payment facilities in India. An NRE account can be opened for savings, recurring deposits, fixed deposits, or as a current account.
Non-Resident Ordinary or NRO Account:
An NRO account is used to deposit funds earned by an NRI in India. Through this account, an NRI can receive funds in both Indian and foreign currencies. It is also allowed to open a joint NRO account with a resident Indian.
Post-Sale Services & Policy Tracking
The primary purpose of purchasing a life insurance plan is to ensure that the financial interests of your loved ones in India are protected. Here are some important points that you should keep in mind once you have purchased a life insurance plan in India:
Tracking your Policy
You can track the status of your policy through the official website of the respective insurance company. Make sure to keep your login details and application reference number handy for hassle-free tracking. For any further queries, you can contact the insurance company's customer service.
Revisiting the Policy
After purchasing life insurance, remember to review your policy periodically to ensure the coverage you selected aligns with your changing financial needs. For example, if you purchased a term plan 10 years ago, the coverage amount may seem inadequate today. You may want to buy another term plan for higher coverage.
Raising a Claim
Understand the claim process of your life insurance policy. If your nominee is in India, inform them about the claim process so that they can get the claim settled in your absence. On the other hand, if your nominee resides in Australia with you, inform them about the policy details and the claim process in your absence.
Tips to Avoid Common Mistakes
Although purchasing life insurance as an NRI has become simpler and quicker, certain common mistakes can significantly impact the coverage and benefits. Here are certain tips to avoid common mistakes:1
Misunderstanding Coverage Needs
A life insurance plan must be based on the coverage needs of you and your family. Buying too little or too much coverage might not be a suitable choice. Therefore, ensure you understand your coverage needs before purchasing a plan.
Delaying the Purchase
Delaying the purchase of life insurance can impact the premium and coverage. It is recommended to buy life insurance while you are young and healthy.
Ignoring Provisions in Policy Documents
Ignoring the terms and conditions of your policy is a big no. Ensure you thoroughly understand the terms , conditions and other provisions outlined in the policy document so that you know what to expect from the plan.
Providing Incorrect Details
While filling out your proposal form, submitting documents, or choosing a payment method, ensure that you provide the correct details.
Conclusion
Life insurance is not just a financial decision, but rather a step you take to safeguard your loved one's financial future. As an NRI living in Australia, you can enjoy better peace of mind since the interests of your loved ones are always protected. If you haven’t already purchased a plan, this is your sign to pick a plan that best meets your needs.
FAQs
As an NRI in Australia, do I need to visit India to purchase life insurance?
No, you do not need to visit India to purchase life insurance. You can buy the plan online from Australia and pay the premium from your NRE or NRO bank account or through swift transactions.
Are there any differences in coverage offered to resident and non-resident Indians under life insurance?
The coverage promised to resident and non-resident Indians is mostly similar. However, there can be differences in the coverage and premium between individuals depending on the policy type, age, health condition of the insured, etc.
