Simple Steps to Buy a Life Insurance Policy
You might think buying insurance from India while living abroad involves endless steps—but the process is actually quite simplified now. Here’s what you need to do-
Step 1 – Choose the Right Policy Type
The initial step is to identify the type of life cover that best suits your situation. Your choice should be influenced by your financial goals and the level of comprehensiveness you want the coverage to have for your dependents.
- If you want the purest form of financial security, a term life cover is ideal—it provides you with maximum cover at minimal premiums.
- But if saving money is also on your agenda, turn to traditional savings-oriented policies like endowment or money-back policies.
- If your goal is to save for your retirement, consider an annuity plan.
- If your child's future is your main concern, a child insurance plan could be the way.
Have a good look at what is covered in each plan and decide which one fits your needs best.
Pro tip: After you've selected the type of plan, take a close look at aspects such as sum assured, policy term, premium paying term, and riders. They all have a direct impact on how well the policy serves your needs—so choose the policy details to tailor them to your specific situation.
Step 2 – Gather NRI Documentation
Once you’ve decided on your policy type, the next step is to gather your documents in order. Some of the documents that you’ll need to furnish are:
- Copy of your passport
- VISA or resident ID as proof of NRI status
- Recent photographs as per application guidelines
- Age and identity proof
- Overseas address proof
- Income proof like salary slips or bank statements
- Fully filled proposal form with personal and health details
- NRI questionnaire and Travel Questionnaire
- PIO/OCI Card is required where applicable
Make sure that scanned documents read well and are authentic.
Pro Tip: Ensure that all the documents are authentic and uniform in all jurisdictions. Even minor differences in your name or address on Indian and Saudi Arabian documents might lead to processing delays. Prepare both self-attested soft copies and hard copies in case verification is needed.
Step 3 – Online Medical Appointment in Saudi Arabia
Once your paperwork is done, the next step is the medical examination. Most life insurance policies require a basic health check-up. As an NRI in Saudi Arabia, you can get this evaluation done locally and send the reports to your insurer. Insurance companies often have a tie-up with diagnostic labs. You can get the check-up done at any one of the nearby approved clinics.
If by any chance you are visiting India, you can choose to get the tests done there. Some insurance companies may even offer telemedical check-ups via phone or video call, depending on the case.
The type of tests you’ll need is based on your age, health history, and the coverage amount. Check with the insurer for the exact requirements.
Pro Tip: Schedule your medical appointment early in the day and avoid heavy meals before the test. It helps ensure more accurate results.
Step 4 – Premium Payment via NRE/NRO
Once the papers and the medicals are completed, underwriting reviews the proposal, if approved. the payment of the premium follows. You can make the payment either from an NRE (Non-Resident External) or NRO (Non-Resident Ordinary) account or through swift transactions, both maintained in Indian Rupees.
If you are receiving your income from overseas, your NRE account is the most suitable as it permits repatriation of the full amount and interest income is exempt from tax in India. If you are receiving income from India, e.g., rent or dividends, your NRO account would be more suitable, though it has repatriation restrictions and is taxable2.
You can also pay online through a debit or credit card associated with such accounts. As premiums are accepted in terms of INR, ensure there is sufficient balance in the account at payment time so that there is no delay or failed payment.
Pro tip: Put auto-debit orders from your NRE or NRO account so that you don't miss deadlines, especially while doing the transactions from abroad.
Step 5 – Get Policy Issued
During underwriting process, your application is carefully screened—your documents, medical reports, and things you have disclosed are reviewed. If additional tests or documents are needed by the insurer, it will inform you.
You will normally be provided with a reference number once you’ve submitted your proposal. You can then track the status of your application online via the reference number. This will tell you whether your policy is accepted, needs additional inputs, or is held in suspense for whatever reason.
Once approved, the policy document is published and e-mailed to you. A hard copy may also be sent to your local or Indian address, as may be the insurer's practice.
Pro tip: Look for any notification from the insurer on submission. Timely responses to questions or document requests can prevent policy delay.
Conclusion
Buying life insurance from India as an NRI based in Saudi Arabia is now no longer a complicated process. With digital resources, online support, and convenient medical and payment facilities, NRIs can now plan their family's future from miles away. All you have to do is follow the steps carefully, keep your documents handy, and choose a plan that truly meets your requirements.
FAQs
What happens if I return to India after buying the life insurance policy as an NRI?
Your life insurance policy will remain in force even after you return to India. You just need to update your residential status and contact details with the insurer to ensure smooth communication.
Do you have to travel to India to buy the policy?
No, you don’t need to visit India. Most insurers offer fully digital onboarding, medicals, and document processing that can be done while staying abroad.
Will my family in India get the insurance claim if I pass away while living in Saudi Arabia?
Yes, life insurance plans purchased in India offer worldwide coverage. If you pass away overseas, even in Saudi Arabia, your nominee in India can file a claim and receive the death benefit, provided all policy terms are met.
