1. Who can invest in ULIPs as an NRI?

Any Non-Resident Indian (NRI), OCI (Overseas Citizens of India) Card Holders or Person of Indian Origin (PIO) can invest in ULIPs, provided they meet the insurer’s eligibility criteria. The investment process is simple, and many insurers offer online facilities to help NRIs purchase and manage their ULIP plans from anywhere in the world.

2. How can NRIs use ULIPs for retirement planning?

ULIPs can be an effective tool for NRIs to build a retirement corpus by investing in market-linked funds that grow over time and provide coverage for the entire tenure. By selecting long-term investment options and balancing equity and debt funds, NRIs can create a steady source of income for post-retirement financial security as well as have a life insurance coverage for the entire policy tenure.

3. How can NRIs switch between ULIP funds?

Most ULIPs offer a fund-switching feature, allowing NRIs to move investments between equity, debt, or balanced funds. This flexibility helps NRIs adjust their portfolios based on market trends, financial goals, or risk appetite, ensuring better control over their investment strategy.

4. What are the tax implications of ULIPs for NRIs?

Tax benefits on ULIP premiums and maturity proceeds may be available under Indian tax laws, but NRIs should check tax regulations in both India and their country of residence to ensure compliance.

ULIP for NRIs – Life Insurance with Investment Benefits

Calling From	Phone Number
Calling us from INDIA	+91 20 6712 1212
Rest of the World	+91 20 6787 1700

Understanding ULIP benefits for NRIs can help you make an informed decision. There are different types of ULIP plans options you may choose from based on your needs and financial goals. Here are some suggestions that can help narrow your choices:

Analyse your personal goals

Before choosing a ULIP plan for NRI, it may be essential for every investor to analyse their personal goals. You can invest in ULIPs keeping your personal goal in mind, like buying property in India, funding your child's education, or building a retirement corpus.
Align your plan with your investment goals

If you're looking for high-risk, high-return investments, an equity-oriented ULIP may be the right fit. On the other hand, if wealth preservation is your priority, debt-based ULIPs offer stability. Choosing the best ULIP plan for NRI depends on your risk appetite and long-term investment strategy.
Compare ULIPs

You may compare the different features and advantages offered by each ULIP to determine the one that suits your specific needs. This may help you get the optimum maturity or death benefits.
Take Advantage of ULIP Flexibility

A major advantage of ULIPs is the ability to switch funds based on market performance. As an NRI, you may want to take advantage of market trends by reallocating your investments between equity, debt, or balanced funds as per your risk appetite.
Analyse Features and Benefits of ULIPs

Every ULIP has unique features and benefits. Having a proper understanding of their pros and cons and comparing their features may help you select best ULIP plan for NRI investors.
Check the Solvency Ratio

An insurance company’s solvency ratio may showcase whether it may be able to honour its claims in the future or not. An insurance company must have a solvency ratio of at least 150% as mandated by IRDAI.
Check the Claim Settlement Ratio (CSR)

The percentage of the total death related claims settled against the death claims received by an insurance company in a financial year is termed as CSR. A high CSR may indicate the insurer's reliability in settling claims. This is particularly important for NRIs who may not be present in India to handle claim-related processes personally.
Pick an Investment Strategy

Some ULIP plans have a focused goal that serves the particular needs of the investors. For instance, ULIP benefits for NRIs include the ability to systematically build wealth for post-retirement financial security, ensuring a stable future. Going with a particular investment strategy may help investors generate regular income and fund future goals.

A ULIP plan for NRI may offer a host of benefits that go beyond traditional insurance or investment plans. They may include:

Maturity Benefit: Unlocking Your Accumulated Fund Value

Upon reaching the maturity of your ULIP plan for NRI, a rewarding benefit may await. You may become eligible to receive an amount equal to the accumulated fund value, serving as a maturity or survival benefit. This may ensure your investment grows over time and rewards your commitment. In case you pass away unfortunately, the maturity benefit may be passed down to your beneficiaries. Depending on the policy, they may receive either the sum assured or the fund value, depending upon the type of ULIP.
Death Benefit: Protection for Your Loved Ones Across Borders

If an NRI policyholder passes away during the ULIP policy tenure, their family may receive the ULIP death benefit as per the policy’s terms.
Asset Allocation: Empowering You NRI with Choice

ULIP benefits for NRIs include the ability to allocate funds across various market-linked instruments. By investing in equity funds, debt funds, or a balanced mix of the two, you may align your investments with your risk appetite, market ups and downs, and financial goals. This flexibility is particularly beneficial for NRIs who may have different financial priorities depending on their country of residence.
Wealth Generation: Harnessing Market-Linked Growth

NRIs can leverage ULIPs as a wealth-building tool, benefiting from long-term market-linked growth. Given the volatility of global markets, a ULIP plan for NRIs provides the advantage of diversification, helping build wealth steadily while securing financial stability in India.
Tax Benefits^[1]

ULIPs not only provide you with the opportunity to grow your wealth and protect your loved ones but may also offer significant tax advantages. Here are several ULIP tax benefits
Stage 1: Entry Benefits - Avail Deductions on Premiums

Tax exemptions under Section 80C for NRIs apply to premiums paid towards a ULIP policy, reducing taxable income in India². You may claim a deduction of up to Rs.1.5 lakhs, subject to the provisions mentioned in the Act.
Stage 2: Earnings Benefits - Tax-Free Growth

As your ULIP investments appreciate over time, the earnings or gains may not be taxable as long as you keep the funds invested. This means you may enjoy tax-free growth on your ULIP investments until you decide to withdraw or redeem them.
Stage 3: Exit Advantage - Tax Treatment at Maturity and Demise

The death benefit amount your nominee may receive may be tax-free as per Section 10(10D) of the Income Tax Act, 1961. For you to get tax exemption on maturity, the premium of the ULIP purchased after 1st April 2012 should not exceed 10% of the death sum assured. If the ULIP is purchased before 1st April 2012, the premium should not exceed 20% of the sum assured. Also, as per the 2021 budget, if the total aggregate annual premiums of ULIP purchased on or after 1st February 2021 is above Rs 2.5 lakhs, the maturity proceeds cannot be tax-exempted. Any returns you may receive from equity funds above Rs 1 lakh may be taxable as per the Long-Term Capital Gains (LTCG) tax rate of 10%. In the case of non-equity assets, returns above Rs 1 lakh may be taxed at a 20% rate.

However, NRIs should check tax treaties between India and their country of residence to understand the full tax implications.

Charge Type	Description
Fund Management Charges	The funds you invest in a ULIP are managed by experienced fund managers who make investment decisions, monitor asset performance, and strive to maximise returns. To compensate for this professional management, insurers may apply a fund management charge. This charge is levied as a percentage of the value of assets and shall be appropriated by adjusting the NAV
Policy Administration Charges	Managing ULIPs requires handling administrative activities such as documentation and record maintenance. To cover these costs, insurers may levy policy administration charges, which are deducted from from the unit fund by cancelling units for equivalent amount
Mortality Charges	ULIPs offer a life insurance component, ensuring a death benefit is paid to the nominee if the insured passes away during the policy term. To cover this risk, insurers may apply mortality charges on ULIPs, including those purchased by NRIs. It is levied at the beginning of each policy month from the fund.
Premium Allocation Charges	These charges are typically deducted upfront as a percentage of the premium. Premium allocation charges help cover the initial costs borne by the insurer while issuing the ULIP, including underwriting costs and distributor commissions. NRIs should also verify if premium payments made from foreign bank accounts are subject to any additional processing fees..
Surrender Charge	A deduction made from the fund value if you surrender or discontinue the policy. It is usually expressed as a percentage of the fund or as a percentage of the annualized premiums (for regular premium plans).

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Unit Linked Insurance Plan (ULIP) for NRIs

What is a ULIP (Unit Linked Insurance Plan)?

How does ULIP Work for NRI?

Why Should NRIs Consider Investing in ULIPs?

Market-linked Returns

Multiple Investment Options

Flexibility

Tax Benefits

Liquidity

ULIP Plans By Bajaj Life Insurance

Factors to Consider When Selecting a ULIP Plan as an NRI

Steps for Buying A ULIP Online as an NRI

For whom is a ULIP Suitable For?

People with Varying Risk Appetites

NRIs with a Long-Term Investment Horizon

Hands-On Investors

Investors Across Life Stages

How to Choose A ULIP for NRI Investors?

Analyse your personal goals

Align your plan with your investment goals

Compare ULIPs

Take Advantage of ULIP Flexibility

Analyse Features and Benefits of ULIPs

Check the Solvency Ratio

Check the Claim Settlement Ratio (CSR)

Pick an Investment Strategy

Features of ULIPs for NRIs

Dual Benefits: Investment and Insurance in One

ULIP Fund Switching: How NRIs Can Switch Between ULIP Funds

Partial Withdrawals: Meeting Liquidity Needs from Abroad

Top-Up Investments: Increasing Your Investment Amount

ULIP Lock-in Period: Building the Habit of Consistent Investing

ULIP Benefits for NRI

Maturity Benefit: Unlocking Your Accumulated Fund Value

Death Benefit: Protection for Your Loved Ones Across Borders

Asset Allocation: Empowering You NRI with Choice

Wealth Generation: Harnessing Market-Linked Growth

Tax Benefits[1]

Stage 1: Entry Benefits - Avail Deductions on Premiums

Stage 2: Earnings Benefits - Tax-Free Growth

Stage 3: Exit Advantage - Tax Treatment at Maturity and Demise

Why Monitoring Your ULIP Fund Performance is Crucial for NRIs?

Managing Risks

Switching Funds

Achieving Long-term Goals

Checking Fund Performance

ULIP Charges for NRI

Myths about Investing in ULIPs for NRIs

Myth: ULIPs are Complex and Confusing

Myth: ULIPs Have High Charges

Myth: ULIPs Offer Limited Investment Options

Myth: ULIPs Lack Transparency

Myth: ULIPs Have Low Returns

Tax Benefits^[1]

Claim Settlement Ratio^~

Get 1 Day Claim Approval^%

Stable Rating by CARE^$$

Assets Under Management (AUM)^***

Number of Lives Covered^##

Solvency Ratio of 343%^{^^^}