Finance

Term Insurance for NRIs: India Triumphs as the Ultimate Choice for Affordability and Ease

With the paradigm shift towards digital platforms, non-resident Indians (NRIs) are increasingly angling towards term insurance policies offered by Indian insurers. Companies like Policybazaar, the frontrunner of India's insurance sector, are at the helm of this trend. NRIs are selecting such policies because they provide considerable financial advantages and ease of access. The Indian insurance realm has become a substantial hub for NRIs looking for reassurance and stability in financial protection.

Unprecedented Growth in Term Insurance Demand Among NRIs

The growth in demand for term insurance among NRIs has been noteworthy, as indicated by the substantial leap in purchases by individuals aged between 18 and 60 from the diaspora—a remarkable 130% increase year-over-year. This spike is largely due to the compelling combination of cost-effectiveness and convenience, setting Indian term insurance plans apart.

Cost-Effective Options for Global Indians

Besides providing easily accessible tele-medical health check-ups from India, removing the hurdle of physical appointments, term insurance plans in India are also significantly more economical. Residents of the UAE and Singapore, in particular, find these Indian insurance policies appealing due to their cost-efficiency—often 30% to 50% less expensive than local alternatives.

Moreover, Indian term insurance policies extend an expansive coverage option, reaching up to INR 5 crores. Such amounts are sufficient for a wide range of financial obligations and future security needs. The duration of coverage is another factor where Indian insurers shine, offering terms that can sometimes last a lifetime, up to the age of 99.

Voices from Policybazaar

Sarbvir Singh, Joint Group CEO of Policybazaar, emphasizes the significant contributions of competitive pricing, extensive coverage, and streamlined processing that includes video and tele-medical examinations. These factors have been pivotal to the rising interest from NRIs, especially in the Gulf region and Singapore.

Appreciation is high for the consumer-centric features, including the guarantee of larger covers and swifter processing that video or tele-medical examinations permit. Singh further adds that it is very reassuring to observe NRIs recognizing the importance of safeguarding their dependents' futures and opting for Indian term insurance policies.

Policybazaar's Comparison Engine: A Gateway to Best Plans

The ease of accessing these plans is further streamlined by Policybazaar's search and comparison engine. It enables NRIs, whose average annual income surpasses INR 35 lakhs, to undergo a thorough evaluation of the best suitable plans as per their unique needs and lifestyle preferences. They also have the advantage of sum assured options reaching up to INR 5 crores through the platform, ensuring that adequate coverage is a reality for every NRI interested in investing in a term insurance plan.

Tailored Offers to Meet Consumer Demands

Rishabh Garg, who steers the Term Insurance division at Policybazaar, draws attention to the evolving term insurance sector in India. He points out that NRI-centric features, including perks like a return of premium at no extra cost and early payouts for terminal illnesses, are becoming increasingly attractive to overseas consumers.

Underscoring Policybazaar's commitment, Garg explains the array of consumer-specific features such as the return of premium without additional charges, immediate pay-outs of up to INR 2 lakhs for urgent obituary expenses, premium waivers following permanent disability, and immediate benefits disbursement upon terminal illnesses which are particularly comforting options for NRIs.

A Price Comparison Table: India vs UAE

A comparative analysis of term insurance policies underscores the affordability of Indian policies against those offered in the UAE. For example, a 35-year-old male non-smoker can avail of cover amounting to INR 2 Cr (or AED 881 K) from Policybazaar. The same cover in the UAE would cost AED 900 K for a similar demographic.

Longevity of Coverage: The Indian Advantage

When comparing the maximum coverage durations, Indian plans offer protection up to 99 years of age, far outpacing UAE's limit of 80 years. Moreover, the premium payable for Indian policies is considerably lower, with illustrious price benefits such as being 36% cheaper compared to their UAE counterparts.

Value-Added Free Services

Indian insurers also go the extra mile by proposing complimentary add-ons like early payouts on terminal illness diagnosis and waiver of premiums. These value-added services are typically absent in policies sourced from the UAE.

GST Exemption and Its Impact on Demand

The appeal of Indian term insurance is further enhanced for NRIs with a GST exemption of 18% when purchasing plans and making payments through their Non-Resident External (NRE) accounts. This attractive proposition has especially drawn interest from Gulf nations, which have a significant share of term insurance buyers—65%, with the UAE contributing a substantial 35% to this figure.

Committed to Comprehensive Coverage

Policybazaar continues to reshape the term insurance landscape for NRIs, ensuring they can proficiently secure their relatives' future with unmatched peace of mind. As the preferences and requirements of NRIs evolve, Policybazaar's dedication to offering state-of-the-art term insurance products and services is unwavering.

Disclaimer on Tax Benefits

While NRIs enjoy the mentioned benefits, it’s crucial to be aware that tax advantages are subject to change in line with tax laws. Prospective buyers should remain informed about the prevailing taxation regulations that may influence their policy benefits.

About Policybazaar.com

Policybazaar.com stands as one of the largest online marketplaces for insurance in India, under the umbrella of PB Fintech, which also houses the fintech brand Paisabazaar.com and maintains a robust presence with Policybazaar.ae in the UAE region. It originated with a mission to enlighten individuals about the various insurance products available and cater to a vast yet under-tapped online insurance market.

To view the company's insignia, one can visit Policybazaar's Logo.

Final Thoughts

As NRIs across the globe increasingly prioritize the well-being of their loved ones, Indian term insurance plans stand out as the embodiment of both financial wisdom and heartening convenience. Policybazaar.com has bridged the gap, serving as the cornerstone platform for NRIs to access these game-changing insurance solutions. With affordability, comprehensive cover, and a user-friendly interface, Indian term insurance is paving the way for a secure future for the diverse Indian diaspora.

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