Opportunities Abroad, Legacy at Home
Many Indians move to Oman, while their dependents remain in India. Many of them dream of returning to their homeland in the future. Such individuals should focus on building a financial security net that can easily meet these needs. Take a look at how NRIs in Oman, especially the ones with Indian roots, can benefit from life insurance plans in India:
Savings plans - Insurance + Savings for Goal-Based Savings
Traditional savings-oriented life insurance policies in India offer a dual benefit of insurance and savings, which cater to both the short-term and long-term needs of NRIs in Oman. Such plans, like endowment or money back plans, can create a stable corpus for your goals in India or Oman.
Retirement Planning
NRIs in Oman planning a return to their homeland post retirement can benefit from annuity plans, as they help create a retirement corpus and generate a steady income stream after retirement.
Indian Insurance: Affordable & Accessible
Indian Life insurance for NRIs in Oman is popular due to its affordability and accessibility, without compromising on comprehensive coverage and financial protection. Let’s take a look at some reasons why NRIs in Oman prefer life insurance plans in India:
Affordable Premium
Life insurance plans in India are designed to offer comprehensive coverage at an affordable premium. NRIs often find premium payments in these a cost-effective option. The currency advantage usually plays a vital role. When NRIs convert their foreign income into Indian Rupees, the premiums for a policy often turn out to be much more affordable than buying a similar plan in their country of residence.
Did you know that a term plan is one of the most affordable life insurance plans in India?
GST Waiver
To encourage NRIs to safeguard the needs of their dependents in India, the government has announced a GST waiver option. NRIs in Oman can claim GST waiver for premiums paid towards life insurance plans in India subject to eligibility criteria and submission of documents every year. if the payment is made using their Non-Resident External (NRE) account.2
Online Platforms
Insurance companies in India have introduced plans for NRIs through their online platforms. This has made life insurance plans easily accessible for NRIs. Whether they want to explore, compare, purchase insurance plans, it can be done easily digitally.
Flexible Coverage
Life insurance in India offers flexible and comprehensive coverage that caters to the needs of NRIs in Oman. There are several types of life insurance plans that, in addition to building a substantial life cover, can also allow savings, offer market-linked returns, and give you tax benefits. You also have the option of enhancing the coverage with riders such as critical illness rider and waiver of premium rider due to income loss, among others.
Tax Benefits
Purchasing life insurance in India is not limited to life cover and market-linked returns. It can offer impressive tax benefits under the Income Tax Act, 1961. For instance, under section 10(10D), you can enjoy tax exemption on the maturity benefit if you fulfil the required conditions. You can also get exemptions of up to ₹1.5 lakhs under Section 80C for the premiums paid towards a life insurance policy and also enjoy a tax-free death benefit.
Things to Keep In Mind Before Purchasing Life Insurance in India
An NRI in Oman has access to a wide range of life insurance plans that can be easily purchased on a digital platform. However, before purchasing a plan, it is important to be considerate about a few aspects:
Plan Type
There are various types of life insurance plans available, each designed to meet specific needs. For instance, term insurance is a reliable option to build a pure life cover. Similarly, options like endowment and money-back plans are for those who want the dual benefit of life insurance and wealth creation. So, choose a plan based on your financial goals.
Cost of Policy
Life insurance plans come with varying costs like, fund management, and mortality charges. Ensure that you carefully evaluate the cost of purchasing the policy.
Medical Examination
Often, life insurance companies may require you to undergo a medical examination. Check the same with your insurer. You can undergo this medical check-up in Oman or when visiting India to buy the policy.
Tax Liabilities
Depending on the policy type, there are different levels of tax liabilities. While the death benefit remains tax-free, the maturity amount may be taxable, depending on the type of plan you choose and the premiums you pay.
Buy From Oman in 5 Easy Steps
An NRI in Oman can easily purchase life insurance in India through digital platforms. Here are 5 easy steps to safeguarding the needs of dependents back in India:
Explore to Find the Right Plan
The first step is to explore and compare different types of life insurance plans to find the one that best aligns with your needs. Several key factors can help determine the right plan, including your life stage and age, dependents, financial goals, medical history, and other relevant considerations.
Keep Documents Ready
Ensure that you have all the documents required by the Insurer readily available before applying for a policy. Please verify with your respective insurance company for a detailed list of documents.
Fill in the Application Form
Visit the official portal of your preferred life insurance company to file an online application for a life insurance plan.
Make the Payment
Once you have completed the application form and submitted the documents, , underwriting reviews the proposal, if approved, you can confirm your application by making a payment through your NRE or NRO account.
Track the Policy
Upon approval, you can easily track the status of your policy at regular intervals to ensure that the coverage aligns with your changing needs.
Conclusion
Despite geographical distances, an NRI in Oman can now easily purchase a life insurance plan and safeguard the financial needs of their dependents back home in India. With benefits such as comprehensive coverage, affordable premiums, tax exemptions and more, purchasing a life insurance plan in India is a smart move.
FAQs
When should an NRI in Oman consider purchasing life insurance in India?
An NRI in Oman should consider purchasing a life insurance plan in India if they have dependents, such as children, a spouse, or parents, back in India. Additionally, an NRI planning a return to India in future can also consider purchasing life insurance to build a corpus in the long run.
What is the ideal coverage for an NRI in Oman?
There is no set rule as to what kind of coverage is sufficient for an individual. The ideal way is to evaluate factors such as the needs of dependents, long-term financial goals, age, and medical history to determine the kind of coverage that would be adequate.
