Why Is Indian Life Insurance Essential for NRIs in Saudi Arabia?

Why do NRIs in Saudi Arabia purchase Indian Life Insurance?

The increase in the purchase of life insurance by NRIs is due to multiple reasons. Some of these are explained below:

• Emotional Anchor: Family Back in India

  Millions of Indians living abroad are still deeply rooted in India and their families might live back home. One often tries to provide the much-needed financial support, even from afar, to their family back in India. Purchasing an life insurance policy from India is just one step towards it.

  NRIs who leave for Saudi Arabia may have their family living in India. Whether it is for ageing parents, their spouse, or the future of their children, NRIs often try to secure the financial interests of their family. This strong emotional connection motivates them to provide financial stability and security for their family, which remains even in their absence.

  
  

• Financial Safety Net

  A life insurance plan is more than just a financial product. It is a promise of financial protection against the unforeseen circumstances of life. In the event of the death of the life assured, the nominee receives the death benefit. Knowing that your family will be secured financially even in your absence is a huge mental relief which drives NRIs to buy life insurance in India.

  Life insurance providers aim to settle claims as soon as possible so the family gets the financial assistance at the earliest. All these reasons make Indian life insurance a meaningful choice for NRIs in Saudi Arabia.

  
  

• Lots of Options to Choose From

  There are different types of life insurance products that you can choose from. Each plan offers different benefits, allowing you to protect your loved ones while also planning your finances. Along with life insurance coverage, many plans can also offer savings and market linked investments element.

  Here are some common types of life insurance plans:

  • Term Plans: Pure life cover at affordable premiums.
  • Endowment Plans: Life cover with a stable maturity benefit.
  • Child Insurance Plans: Build a secure future for your child’s education and other life goals.
  • Money Back Plans: Periodic payouts during the policy term instead of a single payout at maturity.
     

• Ease of Purchase from Saudi Arabia

  Purchasing an Indian life insurance plan from Saudi Arabia is just a few steps away. You can visit a local branch of the Indian life insurance provider in Saudi Arabia or simply apply online. You can search and select the preferred plan online.

  Fill out the proposal form on the official website of the life insurance provider of your choice. Along with the proposal form, submit the required documents , such as address proof, medical records, identity proof, etc. A medical health check-up report may also be required. You may undergo a medical check-up in Saudi Arabia and attach the reports. You can purchase the plan offline when you visit India as well .

  Once the application is filled, underwriting reviews the application, if approved, payment can be done. It is also easier with NRE (Non-Resident External), NRO (Non-Resident Ordinary) accounts, international credit cards, through swift transaction or foreign bank accounts. Once the payment is done, you will receive a confirmation notification.

  Note - Do not forget to read policy documents carefully to fully understand the policy.

  
  

Regulatory and Tax Info

As mentioned above, IRDAI regulates the insurance sector in India. So, as an NRI, if you choose to purchase Indian life insurance products from abroad, it is essential to understand the regulatory and tax details. Below, we have discussed some of the essential NRI insurance regulations and tax rules that you must be aware of.

• Tax Benefits

  NRIs are eligible to avail of tax deductions by purchasing Indian life insurance policies for NRIs in Saudi Arabia. These are:

  • Under Section 80C of the Income Tax Act of 1961, you can claim tax deductions of up to ₹1.5 lakhs for life insurance premiums paid
  • The death benefit is also tax-free
  • The maturity benefit is tax-exempt under Section 10(10D) of the Income Tax Act of 1961, subject to specific conditions
     

• Basic Insurance Guidelines

  Some important insurance guidelines for NRIs are:

  • You can purchase Indian life insurance from Saudi Arabia. The cost of a medical check-up in Saudi Arabia is borne by the policy seeker.
  • The premium for the policy can be paid using NRE or NRO accounts, foreign bank accounts, or credit cards that accept international payments.
  • The entire process of purchasing the policy can be done online from Saudi Arabia.
     

Conclusion

Purchasing a life insurance policy in India is quite easy and simple. Comparatively, plans are also affordable, as securing a ₹1 crore plan or higher may only cost ₹5,000-₹10,000 per year for an NRI. Indians living in Saudi Arabia, the UAE, and the USA are among the top NRI customers for Indian life insurance plans. The ease of claim settlement and quick buying process are some of the many reasons behind it.

Securing your family's future back in India has become a matter of a few clicks. Get your preferred life insurance today without any hassle!

FAQs

1. Do I have to undergo a medical test to purchase Indian life insurance?

   Yes, most of the insurance providers may ask for medical check-up reports. You may undergo a medical check-up either in India or in Saudi Arabia depending on the Insurer.

   
   

2. Is GST charged on Indian life insurance policies?

   Yes, the life insurance product attracts GST subject to eligibility criteria and submission of necessary required documents every year. However, when the premium is paid using an NRE account, the applicant can waive off the GST charges.