Should NRIs buy life insurance in India?
18.05.12
NRE/ FCNR bank account
Elizabeth Venkataraman, Senior Vice President and Head of Marketing, Kotak Mahindra Old Mutual Life Insurance says, "Insurance companies are allowed to issue policies denominated in either Indian rupees or foreign currency to NRIs. If the policy is foreign currency denominated, the premiums are to be collected in foreign currency from abroad or out of NRE/FCNR accounts of the insured or insured's family members held in India. For rupee denominated policies issued to NRIs, funds held in NRO accounts are to be used to pay premiums."
However, do remember that not all insurance companies offer foreign currency denominated polices.
Are premiums higher for NRIs as compared to resident Indians? Are there any limits on the sum assured?
"No," says Surat based VK Virani, an agent of the Life Insurance Corporation and an MDRT 'Court of Table' member. "The premiums are the same for residents and non residents. However, if NRIs are living in countries where risks are higher, premiums maybe higher."
Source: Economic Times