NRI FAQ – Life Insurance Questions Answered

1. What are the different premium payment modes available for NRI Life Insurance?

NRIs can pay life insurance premiums through NRE, NRO, bank accounts, swift transactions as well as international credit cards, depending on the insurer’s accepted modes.

 

2. When does an NRI Life Insurance policy lapse?

An NRI life insurance policy lapses if the premium is not paid even within the grace period.

 

3. What are the documentation and KYC requirements for NRIs buying NRI Life Insurance?

NRIs are generally required to submit the proposal form, proof of age and income, medical report, and an attested copy of their passport. In some cases, insurers may also ask for additional documents.

 

4. What is the medical examination process for NRIs applying for NRI Life Insurance

If present in India, NRIs can undergo the medical examination locally, and the insurer bears the cost. If done abroad, tests must be taken at affiliated centres. The applicants can also get the tests done at the centre of his/her own choice and bear the cost.

 

5. How will I get my NRI Life Insurance policy document after purchase?

When buying the policy, there will be a choice in the proposal form to get the policy in the physical form. If you choose the option to get the policy document in physical form, the policy would be sent to the  address that you mentioned on the proposal form. The policy document is also emailed to you at the registered email ID. If you get an electronic policy, you can request for a physical copy too and the insurer would send the physical document to your address.

 

6. Can NRIs purchase an NRI Life Insurance policy in India?

Yes, NRIs can buy life insurance policies in India, both online or offline , by submitting all the required documents.

 

7. Are NRI Life Insurance policies issued in foreign currency?

No, NRI life insurance policies in India are issued in Indian Rupees (INR), but NRIs can pay premiums using foreign currency via accepted payment methods.

 

8. Do NRIs need to be physically present in India to buy an NRI Life Insurance policy?

No, NRIs do not need to be physically present in India. They can purchase policies online from abroad, provided they submit the required documents and complete any medical examinations as specified by the insurer.

 

9. Which insurers offer NRI Life Insurance policies in India?

Almost all life insurers offer NRI Life Insurance policies in India. You can compare the plans offered and find one that offers wide coverage at competitive premiums.

 

10. Can NRIs buy both health and Life Insurance policies in India?

Yes, NRIs can buy both health and life insurance plans in India, depending on their coverage needs.

 

11. How does the change in residential status affect an active NRI Life Insurance policy?

NRI life insurance policies typically offer worldwide coverage, so any change in your residential status doesn’t invalidate the policy. Claims are still paid to your nominees (subject to policy terms and conditions)  in case an unfortunate event occurs.

 

12. Are NRIs eligible for bonuses (if declared) and loyalty additions in NRI Life Insurance policies?

Since NRIs can buy life insurance plans in India, they would be eligible for the bonus (if declared) and loyalty additions if declared under such plans. Bonus and loyalty additions do not depend on the residential status. If they are added and NRIs hold eligible policies, they would get the bonus (if declared) and loyalty additions, provided the eligibility conditions of such additions are fulfilled.

 

13. Can NRIs invest in ULIPs and in India?

NRIs can buy ULIPs depending on their financial needs and goals.

 

14. What happens if premium payments for NRI Life Insurance are delayed due to overseas bank holidays?

If premium payments are delayed, insurers allow a grace period, of one month or 15 days (for monthly premium payments). Policy remains active if payment is made during this period; if you are unable to make payment during this period, your policy will lapse.

 

15. Can NRIs surrender their  Life Insurance policies from abroad and receive payments outside India?

NRIs can surrender their life insurance plans from abroad. On such surrender, if available, the surrender value will be paid. The value would be paid in INR. NRIs can repatriate the surrender value to their resident country, subject to specific terms and conditions.