Why Do You Need Life Insurance?
First things first, let us take a quick look at the top benefits of availing an Indian insurance plan.
- Financial security for your family
- Global coverage
- Affordable premiums
- Tax-benefits
- Flexibility in premium payment options
- A variety of options to suit your needs.
These benefits make life insurance a smart avenue to financially protect the future of your loved ones, no matter where you are.
Singapore Earnings, Indian Legacy
While you might be staying and earning in Singapore, you might want to create a legacy for your loved ones back home. Plus, when you near retirement, you might want to return to India and spend your golden years in your home town.
If you identify with these needs, you can choose savings-oriented life insurance plans to create a legacy in India. Some of the options that you can explore include the following -
Endowment plans
Endowment plans are traditional savings plans which help you create a stable corpus for your financial goals without the risk of market volatility. While the life insurance coverage provides financial security, the saving element of these plans helps you to create a corpus for your financial goals back home, like buying a home, building a nest egg for retirement, creating assets for your family, etc.
Money back plans
Money back plans are like endowment plans with an added benefit of liquidity. These plans give periodic payouts called money-back benefits, which can give you or your family members access to liquid funds.
ULIPs
ULIPs are market-linked insurance plans that provide insurance coverage with the added benefit of exposure to Indian markets. With ULIPs, you can invest the premium in different types of market-linked funds and grow a corpus in tandem with market movements.
Choose one or more of these plans to create a legacy for yourself or your loved ones back home.
Supporting Parents from Singapore
Most Indians support their parents in their old age, whether they are living in Singapore or India. A term insurance plan fulfils this need. It offers the right coverage and adequate support for your parents in case of your unexpected demise. This ensures your elderly parents are financially secure even when you're no longer around.
With the right plan, you ensure that they do not compromise on their lifestyle and needs. The death benefit can be used for settling debts, their retirement, daily/ medical expenses, and much more. For enhanced coverage, optional additional covers called riders can be opted for. These riders offer compensation over and above the sum assured.
Covering Spouse & Kids in India
If your spouse and children live in India, you can plan for their financial security too with life insurance plans bought in India. Besides the aforementioned endowment, money back and ULIP plans, here’s another option that proves suitable -
Child plans
Designed specifically to create a secure corpus for your child’s future, child plans help you in goal-based planning. Most of these plans have the premium waiver benefit either as an inbuilt or offered as an optional cover. This benefit ensures continuity of the policy even if the parent passes away.
The insurance company pays the premium on behalf of the deceased parent, ensuring that the corpus meant for the child’s future is created, whether the parent is around or not.
If you want to secure the financial needs of your children in the face of uncertainties, child plans can be the right choice.
Life Insurance: A Global Wealth Tool
NRIs looking for life cover along with portfolio diversification to balance risks and returns and to gain exposure to the Indian markets can choose ULIPs.
As discussed earlier, ULIPs can be versatile options that combine the benefits of both life cover and market-linked investment. With ULIPs, you get access to capital investment in a varied range of funds, eg, equity funds, debt funds, helping you in wealth creation.
Further, these also have the option of switching your funds, which can come in handy with your evolving life goals. Also, these have a lock-in period of 5 years that can help you with disciplined investing. For NRIs, ULIPs offer tax benefits too on the premiums paid as well as the benefits received.
Conclusion
When you live in Singapore, you might have financial goals that span borders. To fulfil these goals, whether in Singapore or India, life insurance plans can be effective financial tools. Besides the insurance coverage, life insurance plans can help you build a corpus for your financial goals. You can also use life insurance plans to create a legacy for your loved ones.
So, assess your coverage needs and choose the right life insurance plans to manage dual country goals effortlessly.
FAQs
Are Indian life insurance policies customisable for NRIs?
The Indian insurance industry offers a variety of life insurance plans, allowing you to choose one that best suits your needs. Further, you may add riders like critical illness, medical care, and so on to make your plan more effective, comprehensive, and better suited to you.
Can I buy a term plan from Singapore, without visiting India?
Yes, you may. The Indian insurance industry now offers a lot of flexibility, allowing you to purchase a term plan from almost anywhere, including Singapore. However, you might need telemedical exams, e-KYC, and video verification for the same.
