Importance of Life Insurance for NRIs
India is presently one of the fastest growing economies in the world with approximately 6-8 percent of annual growth as revealed by various credit agencies and research papers. When we compare it to other economies it seems to be better as other countries are either on the verge of normal growth or there is no growth at all. This serves to be an attraction for various NRIs to invest in the country.
Going by the interest rates that are being offered in India, NRIs have enough scope to capitalize on their investments as compared to their work countries. There is standard strategy or specific portfolio that can be used universally for NRIs to invest in.
Life insurance undoubtedly plays a significant role in an NRI’s life. For example - If you are an NRI who has two young children, a wife and your parents are living in India and they are all financially dependent on you, your portfolio needs to cover –
- Regular guaranteed income for parents
- Life cover for the financial security of your family
- Wealth maximization for your spouse and yourself
- Income to meet children’s education
It is important for you to ensure a regular guaranteed income for your ageing parents as in the event of your sudden unfortunate demise, your parents will have no alternative to fulfill their day to day financial needs. Plans like immediate annuity plan may serve your purpose in this case. These plans also give you an option to regain the invested amount back that can be repatriated by you to the country you are residing in once the last surviving parent dies.
In order to fulfill your need of life cover for the financial security for your loved ones you can opt for the term plans that are available. They ensure that your family would not suffer financial crisis after your sad and unfortunate sudden demise.
Children plans proposed by many banks and financial institutions may serve handy while you wish to keep a provision to meet the education needs of your children. In the event when you are not there, the education of your children would continue uninterrupted. In this type of plan the family gets a lump sum upon the death of the parent and the future premiums of the policy are paid by the life insurance company on behalf of the policy holder.
Insurance Companies and Plans offered to NRIs – Following is the list of companies that offer insurance plans that may prove beneficial for you. However, it is always advised to read the fine prints of the policy and analyze your insurance requirements in advance before you plan to opt for a policy. You may also compare the different polices and then opt for the plan that gives you maximum benefit.
ICICI Prudential Life Insurance
i.) Wealth Creation Policies
- ICICI Pru Premier Wealth
- ICICI Pru Assure Wealth
- ICICI Pru LifeTime Maxima
- ICICI Pru Pinnacle
- ICICI Pru LifeStage Wealth
- ICICI Pru ACE
ii.) Education Policies
- ICICI Pru SmartKid Maxima
- ICICI Pru SmartKId Regular Premium
- ICICI Pru SmartKid Assure
Bajaj Allianz
- Lifetime Care- Bajaj Allianz Whole Life Policy
- Invest Gain- Bajaj Allianz Endowment Policy
- Unit Gain - Bajaj Allianz Unit Linked Whole Life Policy
- Cash Gain- Bajaj Allianz Money Back Policy
- Swarna Vishranti- Bajaj Allianz Differed Annuity Policy
- Child Gain- Bajaj Allianz Money Back Policy for Kids
Other popular companies offering suitable insurance plans to NRIs:
- State Bank of India Insurance Plans
- Kotak Life Insurance
- Axis Life Insurance
- HDFC Standard Life Insurance
- Max Life Insurance
Contributed By: Megha Sharma |
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Megha Sharma works as a guest lecturer in Delhi. She holds an MBA & Doctorate from the UPTU. With extensive knowledge and experience in various financial products, she also works as a consultant in banking & finance domains wherein she offers advice to her clients in managing personal finance. | |
