Planning for the future has always been a characteristic of Indians, no matter where they live. Saving for uncertain circumstances and providing for the family in case of unforeseen situations are well outlined in their financial planning. This is the reason why term insurance is an important part of the average NRI’s investment portfolio. Considered to be the purest form of life insurance plan, term insurance protects the family from financial hardship in the event of the unfortunate death of the breadwinner. This is an important plan for NRIs as some of them stay away from their families just to ensure a better future and a stable financial safety net for their loved ones.
However, the various pandemic waves and subsequent threat of infection have made buying a term insurance policy a bit more complicated. Covid has given way to tighter insurance norms and also lower coverage policies in the market. Not only this, buyers had to undergo a physical medical examination before the policy was issued. This became particularly difficult for NRIs who could not do the same due to travel restrictions and safety concerns. Now that the world is gradually returning to its pre-pandemic shape, norms are being eased around the world. The same goes for buying term life policies and the good news is that this plan is now more affordable for NRIs with video medicals.
Cost effective plans to suit the needs of NRIs
Buying term insurance in India should undoubtedly be on the radar of NRIs for two reasons – this policy, compared to other countries, is more cost-effective in India. Second, this cost-effectiveness comes along with adequate benefits appropriately tailored to their needs. For example, when an NRI buys term insurance in other countries, they would pay a substantial 50-60 percent higher premium than in India. Keeping in mind the entire policy period, the lower premium amount helps to save significantly. Also, apart from being affordable, there is now one more reason to buy the plan in India. Relaxed norms now make the purchase even more accessible through telemedicine or video examinations.
As an NRI, planning a visit solely for the purpose of buying an insurance policy will hardly ever be an option. Telemedical examinations will ensure that you no longer have to put it off until you visit the country, especially when COVID-19 is still around. As we have witnessed over the past two years, telemedicine has received a significant boost during the pandemic. Thus, if you are a non-resident Indian, you can now buy a term plan from anywhere in the world by simply searching for it online, selecting it and filling the application form. The premium can be paid effortlessly online using convenient payment methods like net banking or credit/debit cards. Post this, a video or telemedical exam is scheduled based on your medical history and documentation of existing medical problems and chronic conditions. Once the report is submitted and green checked, the application will be accepted and your desired policy will be issued to you.
Breaking down barriers with telemedicine/video review
Geographical boundaries are no longer a barrier if you want to avail the benefits of buying the term plan in India. Telemedicine in insurance is simple as the company follows the teleinsurance process where the authorized doctor from the insurance company calls to understand the current medical history and condition of the customer. The medic will then ask basic questions to assess health status and lifestyle habits. In response, the client must share accurate information and make a health declaration to the designated physician over the phone or video call. Following this step precisely and smoothly is crucial as it helps during claim settlement.
To summarize, if you are an NRI or OCI, term insurance purchased in India that is affordable and offers guaranteed benefits irrespective of your country will financially protect your family completely. So, with the abundance of benefits for a sizeable Indian population spread across the globe, checking a term plan and its features online is recommended. Also, read the terms and conditions carefully before signing the policies.
The author is Head – Term Life Insurance at Policybazaar.com. The views expressed are those of the author.