Term insurance plans are feature-rich, providing various benefits to NRIs in Kuwait. Some of these salient features and benefits are as follows -
Feature 1: Cost Advantage
Term insurance plans in India are usually lower priced as compared to term plans available internationally. Thus, Kuwait-based NRIs can gain from a cost advantage and save on the premiums while enjoying financial security against life risk.
Moreover, the Kuwaiti Dinar is stronger than the Indian Rupee. As such, it gives NRIs of Kuwait a higher purchasing power, making rupee-denominated premiums more pocket-friendly.
Ultimately, it’s a low-premium option and comprehensive coverage term insurance which aligns well with long-term financial protection. Further, the premiums of the term insurance plans can be paid through NRE/NRO accounts or swift transactions, making term plans convenient and accessible.
Feature 2: Types of Term Insurance
Term insurance plans come in three main types based on how the sum assured changes over the policy tenure: level sum assured, increasing sum assured and decreasing sum assured term plans.
- Level Term Plan:
The sum assured remains constant throughout the term of the policy. It is ideal for individuals seeking consistent coverage. - Increasing Term Plan:
The sum assured in these term plans increases at a predetermined rate, usually annually, to help the Life assured keep pace with their rising financial responsibilities. These plans are suitable for NRIs expecting increasing responsibilities at later ages. - Decreasing Term Plan:
The sum assured in these term plans decreases over time, typically aligned with reducing financial liabilities of the policyholder, like home loans. These plans are suitable if NRIs have loans in India. - Return of Premium Plans:
It is called TROP (term plan with return of premium). These plans refund the premium if the life assured survives the policy tenure. So, for NRIs seeking a maturity benefit from their term plans, TROP can make a good choice.
Feature 3: Fast Online Insurance
Like other life insurance, Indian insurers also offer end-to-end online access and facilities, making it incredibly convenient for Kuwait-based NRIs to easily buy term insurance plans from abroad. There are portals which enable end-to-end digital issuance of policy without any paperwork — right from comparing available plans, submitting documents required by the Insurer, undergoing the eKYC process, or making premium payments. Many platforms also offer 24/7 support, real-time assistance and options to reach experts for guidance, fitting the global time zones.
This convenient and fast online insurance makes buying term insurance smooth and easy without disrupting your busy life abroad. Plus, the digital process is transparent and secure, protecting NRIs from the risk of cyber threats.
Feature 4: Flexibility with add-ons
Term insurance in India often comes with additional riders at nominal extra premiums, offering enhanced protection and align with the needs. These riders can be attached to the base plan, enhancing the insurance coverage beyond the base policy. Common add-ons in term insurance in India include critical illness benefit rider which gives lump-sum payout upon diagnosis of a specified severe illness, accidental death rider which provides extra financial security in case of unforeseen accidents, waiver of premium rider for waiving off the future premiums subject to rider conditions, terminal illness rider for protection against covered terminal illness, accidental total and permanent disability rider, income benefit rider and so on.
Thus, NRIs can add suitable riders to their policies to enhance the coverage and enjoy additional financial protection.
Conclusion
Term plans for Kuwait-based NRIs offer an excellent way to ensure peace of mind and financial security for their loved ones. With choice of coverage, flexibility, and affordable premiums, these plans provide great value for money. Further, the tax benefits and worldwide coverage make these term plans more attractive. Overall, these term insurance plans are a reliable and smart choice for NRIs looking to protect their family’s future with ease.
FAQs
Can Kuwait-based NRIs buy term insurance from Indian insurers?
Yes, Kuwait-based NRIs can buy term insurance plans from Indian insurance companies through online platforms, without visiting India and can also opt for offline , if they are in India.
What is the tax benefit on term insurance plans for Kuwait-based NRIs?
NRIs can claim a tax deduction on the premium paid for the term insurance policy. The deduction is available under Section 80C up to ₹1.5 lakhs. Moreover, the death benefit paid under the policy is also treated as a tax-free income.
Will I have to travel to India for medical tests to buy a term insurance?
No, you can do the medical check-ups locally without the need to travel to India for medical tests.
