What is Term Insurance for NRI?
Term insurance for NRIs is a specific type of life insurance policy designed to meet the unique requirements of Non-Resident Indians.
In simple terms, term insurance is a contract between an individual and an insurance company. The individual pays premiums regularly and the insurance company agrees to pay a lump sum amount to the nominated beneficiaries in case of the policyholder’s demise during the term of the policy in return.
Several top insurance companies in the UAE recognise the diverse needs of expatriates and offer a variety of term insurance plans for NRI specifically designed to cater to NRIs.
Features of Term Insurance for NRI
Term insurance for NRIs comes with a plethora of features designed to provide flexibility, reliability, and ease of access to meet the diverse needs of expatriates. These features are constructed considering the distinct circumstances NRIs face so that they can avail the maximum benefits, coupled with convenience and straightforward procedures.
- Multiple Options: Many insurance companies offer a variety of plans with different benefits and coverage, allowing NRIs to choose a plan that best suits their specific requirements and preferences.
- Customisable Amount: The amount of coverage, or sum assured, can be tailored based on individual needs and financial obligations. This gives policyholders the flexibility to decide how much financial protection they require.
- Easy Documentation: Leading insurance providers streamline the documentation process, making it simpler and more accessible for NRIs to apply for and maintain their policies without excessive paperwork.
- Flexible Premium Payment: Term insurance plans usually offer various premium payment options, letting policyholders select a payment frequency that aligns with their financial conditions and planning such as monthly, quarterly, semi-annual, or annual payments.
- Renewability and Convertibility: Some plans offer the option to renew the policy for additional terms or convert it into another type of life insurance policy, providing continued coverage and added flexibility.
- Rider Options: Many policies allow the addition of riders or additional benefits such as critical illness coverage or accidental death benefits. This enhances their protection level according to the requirements of the policyholder.
Benefits of NRI Term Insurance
Term insurance for NRIs, providing several benefits, is especially designed considering the transient and unique lifestyle of expatriates. These advantages not only safeguard the financial stability of their families in their home countries but also provide peace of mind and security to NRIs.
Here are some specific benefits of term insurance for NRIs -
- Financial Security for Family: One of the most significant benefits of term insurance is the financial protection that it offers to the policyholder's family. In case of the policyholder’s demise, the family receives a lump sum amount. This amount can help them meet their financial needs and maintain their standard of living even in the absence of the breadwinner.
- Affordability: Term insurance policies are generally more affordable than other life insurance products, allowing NRIs to secure substantial coverage at a lower premium cost. This is especially beneficial for expatriates looking to maximise protection without straining their finances.
- Peace of Mind: Knowing that their family will be financially secure even in their absence with term insurance, NRIs can live and work abroad with less stress and anxiety regarding their loved ones' well-being back home.
- Coverage Against Liabilities: The payout from term insurance can be used to settle any outstanding debts or loans that the policyholder may have, preventing the burden of repayment from falling on the family members.
- Flexibility and Customisation: The ability to choose the coverage amount, policy term, and add-on riders allows NRIs to customise their policies according to their individual requirements and preferences.
- Enhanced Savings: Some term insurance policies offer savings components or return of premium features, allowing NRIs to recoup some or all of the premiums paid if the policy term ends without a claim, thereby serving as a form of forced savings.
Who Should Opt for NRI Term Insurance?
When determining the appropriateness of term insurance for NRIs, it’s vital to consider one's individual circumstances, needs, and long-term financial objectives.
Here’s a comprehensive look at who should consider opting for term insurance for NRIs -
- Married NRIs: Those who are married and have a spouse who depends on their income should consider term insurance as a priority. It ensures that the spouse continues to have financial support in the event of the policyholder’s untimely demise, sustaining their standard of living.
- NRIs with Children: Parents inherently want to secure their children’s future even in their absence. NRIs with children should opt for term insurance to safeguard their children’s education, upbringing, and overall well-being.
- NRIs with Financial Liabilities: If an NRI has substantial debts or financial obligations, term insurance is highly advisable. In case of their demise, the burden of debts does not fall upon their family as the payout can be used to settle outstanding liabilities.
- Single NRIs Supporting Families Back Home: Single NRIs who are the primary breadwinners for their families in their home countries should consider term insurance. It will provide financial sustenance to their families in their absence.
- NRIs with Specific Financial Goals: Those who have outlined specific financial objectives, like purchasing a home or securing a substantial retirement fund, should opt for term insurance. This way, they can ensure that these goals can still be met even if they are not around to contribute to them.
- NRIs Looking for Peace of Mind: NRIs who wish to live stress-free, knowing that their loved ones are financially secure irrespective of the uncertainties of life, should opt for term insurance. This type of insurance offers psychological comfort and allows policyholders to focus on their lives without constantly worrying about their families' financial future.
How Does Term Insurance for NRI Work?
Term insurance for NRIs fundamentally operates in the same way as a standard term insurance policy for UAE Nationals. In essence, NRIs pay premium payments periodically, which in turn provide them with life coverage.
Term insurance provides coverage for a predetermined duration unless one opts for a whole life policy, which allows the coverage to persist indefinitely regardless of age or the length of the policy tenure.
If any unfortunate event befalls the NRI within the term of the policy, the designated nominee is entitled to receive the financial benefit, strictly in adherence to the stipulations set forth in the policy documents. This mechanism ensures a level of financial security and peace of mind for both the policyholder and their loved ones, catering to the distinctive needs and lifestyles of NRIs.
Why Should a NRI Purchase Term Insurance in the UAE?
When an NRI chooses to purchase term insurance in the UAE, they are essentially safeguarding their family’s financial future, leveraging the strategic advantages offered by the UAE's insurance sector.
The UAE, known for its diverse insurance market, provides a range of term insurance plans specifically designed to meet the unique needs of NRIs. These plans not only offer security against life’s uncertainties but also help in achieving long-term financial objectives with ease and efficiency.
NRI should opt for term insurance in UAE for the following reasons -
- Financial Security: Term insurance provides financial protection to the family in case of the policyholder’s untimely demise.
- Flexibility: Insurance providers offer various plans with customisable options to match individual requirements and preferences.
- Diverse Coverage: Term insurance may include multiple types of coverage like death due to accident or sickness, critical illness, and more.
- Worldwide Protection: With these plans, coverage is not restricted to one location but is applicable globally.
- Economic Stability: With term insurance, one can have a safety net to effectively manage financial obligations like loans and mortgages.
- Peace of Mind: Term insurance gives assurance that loved ones will be financially secure in unforeseen circumstances.
Does the NRI need to be present in UAE while buying a term plan?
With the advent of the internet and technology, you can buy a term insurance plan for NRIs from anywhere in the world. You can visit the online portal and go through the different term insurance plans for NRI in UAE to find the right plan. However, you need to go through Tele-medical checkups from your residential country.
Documents Required for Term Insurance for NRIs
When applying for term insurance as a Non-Resident Indian (NRI) in the UAE, specific documents are required to process the application. The collection of these documents is a fundamental step to ensure the accuracy of information and the legitimacy of the application.
Listed below are the documents required -
- Application Form: A fully filled and signed application form, outlining personal details, chosen plan, policy term, and other relevant information, is mandatory.
- Passport and Visa Copies: Copies of your passport and valid visa are required to verify your identity, nationality, and legal residency status in the UAE.
- Proof of Address: A document such as a utility bill or rental agreement is required to confirm your residential address both in the UAE and in your home country.
- Proof of Income: Income documents like salary slips are required.
- Medical Reports: Depending on the policy and the insurer, you may have to submit medical reports or undergo medical tests to ascertain your health status.
- Photographs: Recent passport-size photographs are generally required as a part of the application process.
- NRI Status Proof: Documents proving your NRI status, like an overseas residential proof or employment letter, may be necessary.
- Nominee Details: Detailed information about the nominee, including their name, relationship with the policyholder, and contact information, needs to be provided.
- Bank Account Details: Your bank account details may be required for premium payments and benefit payouts.
Best Term Insurance Plan for NRI
The list of best term insurance for NRI is given below:
Name of the term insurance plan
Hemaya Plus - Salama Insurance
18 years to 74 years
Pure Protection Term Plan - Noor Takaful
18 years to 60 years
International Term Assurance - Zurich International Life Limited
The average age should be 39 years at the time of purchase
Hemayati Plus - Salama Insurance
18 years to 55 years
Live Life Term Insurance - MetLife
18 years to 65 years
Noor Takaful Term Insurance
18 years to 60 years
HAYAH Insurance – Term Life Protect
Term Life Protect by HAYAH Insurance is one of the top plans that cater comprehensively to the requirements of NRIs. This plan is specifically designed to offer extensive coverage and a plethora of features.
- COVID-19 Coverage: This plan ensures financial protection against COVID-19, providing coverage from the day of policy activation.
- Policy Term: The plan offers a policy term of 10 years, providing long-term security and peace of mind.
- Pre-Existing Disease Coverage: Coverage for pre-existing diseases is available, subject to approval by the insurance provider.
- Medical Check-up: Depending on individual health conditions, the sum covered, and age, medical check-ups may be required.
- Worldwide Coverage: This plan provides the benefit of worldwide coverage, no matter where you are located globally.
- Life Cover: A life cover of AED 1,000,000 is included.
- Add-ons: You can opt for multiple add-ons like terminal illness coverage, critical illness cover, permanent total disability coverage, and more.
Watania Takaful – Pure Protection
When exploring options for top term insurance plans for NRIs, the Watania Takaful – Pure Protection plan emerges as one of the top choices. It’s characterised by its straightforward approach to offering essential protections, designed with a clear focus on providing pure and uncomplicated coverage to meet the varied requirements of NRIs.
- Policy Term: The Pure Protection plan has a fixed policy term of 10 years.
- Life Cover: It offers a substantial life cover of AED 1,000,000, providing financial stability to your loved ones.
- COVID-19 Coverage: Protection against COVID-19 is included in the plan, offering peace of mind in these unprecedented times.
- Pre-Existing Disease Coverage: Coverage for pre-existing diseases can be provided in the plan, although this is subject to the approval of the insurer.
- Medical Check-up: Medical check-ups may be required depending on individual health conditions, the amount of sum covered, and the age of the insured.
- Worldwide Coverage: The plan ensures protection across the globe.
- Sum Insured Payout in case of Death
- Accident: From Day One, a sum of AED 1,000,000 is payable.
- Sickness: A sum of AED 1,000,000 is also payable from Day One in case of sickness.
Takaful Emarat – Fixed Term
Another commendable option for NRIs seeking term insurance is the Takaful Emarat – Fixed Term plan. It's precisely structured to offer assured protections and caters to those who prefer extensive coverage under one plan, making it another favourable option for NRIs seeking stable and reliable term insurance plans.
- Policy Term: Comes with a policy term of 10 years.
- Life Cover: Grants a considerable life cover of AED 1,000,000, establishing financial reassurance for your beneficiaries.
- COVID-19 Coverage: This plan includes COVID-19 coverage.
- Pre-Existing Disease Coverage: Possible inclusion of pre-existing diseases, conditional to the insurer's approval.
- Global Coverage: The plan ensures you're protected wherever you are in the world.
- Sum Insured Payout in Case of Death
- Accident: AED 1,000,000 is assured from Day One in the event of an accident.
- Sickness: Similar to accidents, AED 1,000,000 is assured from Day One in case of sickness.
Orient Insurance – International Term Plan
The Orient Insurance – International Term Plan is a top-tier choice designed to cater to the diversified needs of NRIs, offering a blend of security and flexibility.
Unlike conventional term plans, this particular option stands out due to its extensive range of coverages and the additional elective coverages available, allowing policyholders to tailor their plans as per their preferences.
- Pre-Existing Disease Coverage: This plan offers potential coverage for pre-existing diseases, subject to the approval of the insurance provider.
- Medical Checkup: Depending upon the health condition, the sum covered, and the age of the applicant, a medical checkup might be necessitated.
- Worldwide Coverage: It offers worldwide coverage.
- Sum Insured Payout in case of Death
- Accident: The plan provides coverage from day one in the unfortunate event of an accident.
- Sickness: Similarly, coverage is provided from day one in case of sickness.
- Inclusive Coverages
- Terminal Illness Cover: This cover offers financial protection against illnesses deemed incurable with limited life expectancy.
- Passive War Risk Coverage: Also included, this cover offers financial protection against the risks arising due to wars.
- Optional Coverages
- Critical Illness Cover: Policyholders have the option to add this to their plan and ensure enhanced coverage in case of severe health conditions.
- Permanent Total Disability Cover: This cover can be opted to enhance the overall protection provided by the plan.
Zurich Insurance – International Term Assurance
Zurich Insurance – International Term Assurance is a distinguished choice for NRIs seeking comprehensive, international coverage. Zurich, a globally recognised brand, brings reliability and extensive protection with this plan.
The plan’s structured features and hassle-free process make it a preferred choice for those who desire streamlined and wide-ranging protection.
- COVID-19 Coverage: The plan offers coverage against COVID-19, ensuring protection during the pandemic.
- Pre-Existing Disease Coverage: Coverage for pre-existing diseases, subject to the insurer's approval, adds a layer of protection for various health conditions.
- Maturity Bonus Payout: No maturity bonus payout is available through this policy, maintaining the plan’s focus on pure protection.
- Medical Check-up: A medical examination might be required as per one’s age, health condition, and sum assured.
- Worldwide Coverage: Ensures protection is not bound by geographical limitations
- Sum Insured Payout in Case of Death
- Accident: A coverage of AED 1,000,000 is provided from day one in case of an accident.
- Sickness: Coverage of AED 1,000,000 is also provided from day one in case of sickness.
Sukoon Insurance – DigiCI (Critical Illness)
The Sukoon Insurance – DigiCI (Critical Illness) Plan stands out for its emphasis on critical illness coverage, offering a sense of ‘sukoon’ or peace to policyholders by securing them against severe health conditions.
Sukoon Insurance, known for its innovative digital insurance solutions, ensures that NRIs have access to essential critical illness coverage, with the added benefit of no medical check-ups and worldwide protection.
- COVID-19 Coverage: The plan offers financial protection against COVID-19.
- Pre-Existing Disease Coverage: It provides possible coverage for pre-existing diseases (subject to insurer approval), allowing for more inclusive protection.
- Maturity Bonus Payout: There is no maturity bonus payout in this plan.
- Medical Check-up: The plan does not require a medical check-up, streamlining the application process for potential policyholders.
- Worldwide Coverage: It assures worldwide coverage, offering protection to NRIs wherever they are located globally.
- Sum Insured Payout in Case of Death: Pre-existing diseases are not covered for the sum insured payout in case of death.
How to Apply for NRI Term Insurance?
With the online platform of Policybazaar UAE, you can easily apply for term insurance for NRIs.
Here's a step-by-step guide for the same -
- Visit the Website: Start by visiting policybazaar Insurance the official website of Policybazaar UAE.
- Navigate to the Term Insurance Page: Once there, proceed to the term insurance section. You can click on the relevant icon on the homepage or find ‘term insurance’ under ‘Insurance’.
- Enter Your Details: Fill in the necessary details such as your name, contact number, email address, and age in the provided spaces.
- Review the Quotes: After entering your details, you will be directed to a page displaying various term insurance quotes. Here, you can compare the top plans along with their features and other key details.
- Apply: Once you’ve decided on a plan that suits your requirements, choose the option to apply for the said plan.
- Wait for Contact: After you submit your application, a representative from Policybazaar.ae will get in touch with you to assist you through the remaining steps of the application process.
Advantages of Applying via Policybazaar Insurance UAE
Applying through Policybazaar Insurance UAE’s official website offers several key advantages:
- Comparison of Plans: Our platform allows you to compare various plans side by side, ensuring that you choose the one that best aligns with your budget and what you want.
- Ease and Convenience: The streamlined online process saves time and effort, allowing you to apply from the comfort of your home.
- Detailed Information: The website provides comprehensive information on each plan, helping you make an informed decision.
- Customer Support: Policybazaar.ae assistance throughout the application process, clarifying any doubts and providing guidance as required.
- Secure and Reliable: The platform ensures the security of your information and provides a reliable interface for application submission.
In the final section of the article, let’s go through some of the most frequently asked questions along with their answers.
How are UAE term insurers better than other insurers?
- Affordable premium rates: Term insurance plans in UAE offer financial security to the policyholder's family at an affordable premium. Hence, the buyer can buy a term plan without worrying about lifestyle changes.
- High claim settlement ratio: The best term insurance plans for NRI have a high claim settlement ratio as compared to other plans. However, you need to make sure that you have disclosed everything related to your health, disease, lifestyle habits and income to reduce the chances of rejection.
- Flexible premium payment: The policyholder has the option to pay the premium monthly/quarterly or annually.
- Flexible tenure: The term insurance plan for NRIin Dubai provides the option to choose the tenure of the plan. It can range from 5 to 15 years.
Frequently Asked Questions