Step-by-step guide for buying a life insurance policy
Whether it is buying online documentation, or medical check-ups, the whole process of buying life insurance in India is simple. Here’s how you can go about it –
Step 1 – Pick your plan
The first and important step is to choose your plan. Life insurance companies offer different types of plans, and it is recommended to choose one depending on your coverage needs and financial goals.
Here’s what you can do –
| Coverage and financial needs | Type of plan that suits it |
|---|
Protecting your income and providing your family with financial support in your absence
| Term insurance plan
|
Building a corpus for your financial goals without the risk of market volatility
| Traditional savings plans like endowment and money back
|
Creating a corpus for your child’s future needs
| Child insurance plans
|
Building a retirement corpus
| Deferred annuity plans
|
Assess the different plans and see which one aligns with your needs to buy suitable policies.
Pro tip: Term insurance plans are useful from a financial security point of view. Buy term plans before you start saving for financial goals to create a financial safety net for your family in your absence.
Step 2 – Choose the right coverage details
Coverage details include the sum assured, policy term, premium paying term, riders, etc. Choose these details based on your needs.
For instance, when buying term insurance plans, choose an optimal sum assured that would take care of all of your family’s financial needs. Similarly, when buying savings-oriented life insurance plans, ensure that the policy benefits would meet your financial goals.
Choosing the right policy term is also important so that the chosen plans can fulfil the financial goals for which you bought them.
Pro tip: Consider adding riders to your life insurance plans to enhance the scope of coverage at small additional premiums.
Step 3: Fill out the proposal form
Once you have shortlisted the type of plan and policy details, fill out the proposal form to start the buying process. The proposal form is available online, which allows you to buy the policy online from anywhere in Oman. Alternatively, you can get the form offline when you are visiting India, fill it up, submit it, and buy the policy offline.
Pro tip: When filling out the proposal form, ensure that you provide all the relevant information correctly and truthfully. Non-disclosure of important information or lying about any medical condition might result in a rejected claim.
Step 4: Upload your documents
You would have to submit a set of documents with the proposal form when buying life insurance. Some of these documents include the following –
- Identity proof
- Overseas address proof
- Income proof
- Copy of passport and Visa
- Medical reports, if applicable, etc.
- NRI questionnaire and Travel Questionnaire
- PIO/OCI Card is required where applicable
Upload the documents online and submit the proposal for underwriting.
Pro tip: Scan and save self-attested copies of the documents in PDF format so that you can upload them easily.
Step 5 – Complete pre-entrance medical check-ups
As an NRI, you might have to undergo pre-entrance health check-ups to buy the life insurance policy you have chosen. You can get the medical check-up done in Oman, after which you can send your medical reports to the insurance company in India.
Alternatively, if you are buying the life insurance policy when you are visiting India, you can get the medical check-ups done in India to buy the plan. Some companies also allow telemedical check-ups. Find out if the same is offered by the insurance company.
Pro tip: The requirement of a medical check-ups depends on the Insurer, the sum assured that you choose, and your age. Find out the complete list of tests that are required to complete the medical check-up in accordance with the insurer’s needs.
Step 6 – Proposal Acceptance and Premium payment
The last step in buying your life insurance policy is paying the premium. The premium for life insurance policies is accepted in Indian Rupee. Once the insurer communicates the decision of acceptance of the proposal, you can make the premium payment online through your credit or debit cards or through a valid Non-Resident Ordinary (NRO) or Non-Resident External (NRE) bank account or through Foreign Bank account via SWIFT transactions. If there’s a requirement for additional premium or additional health check-ups based on your age, sum assured, and other details in the proposal, the insurance company would inform you of the same. Complete the required formalities to get your policy issued.
Pro tip: Both NRO and NRE accounts are denominated in INR. Ensure that there is sufficient balance in your account for a successful premium payment.
Conclusion
These are some of the simple steps with which you can buy a life insurance policy in India as an NRI living in Oman. With advancements in technology, buying a life insurance policy in India, from anywhere across the globe, is no longer a cumbersome process. Just choose the right plan, fill out the proposal form, upload your documents, and pay the premium once insurer accepts your proposal. That’s all! Your policy would be issued after underwriting, and you would be able to protect your family’s financial needs while sitting comfortably in Oman.
FAQs
I own a work Visa in Oman. Am I eligible to buy a life insurance policy in India?
If you are an NRI, you would be eligible to buy a life insurance policy in India.
If I die in Oman or another Gulf country, would my family back home be eligible to make a claim?
Life insurance plans bought in India cover death anywhere in the world. So, even if you pass away when you are abroad, your family back home would be able to make a claim and get the death benefit in India.
Will my life insurance policy change if I return to India?
Your return to India would not affect the terms of your life insurance policy. However, it is recommended to inform the insurance company of your return as your residential or communication address might change.
