Things to Consider While Buying Life Insurance for Foreign Nationals

Sep 28, 2018 | 4 months ago | Read Time: 3 minutes | By iKnowledge Team

Things to Consider While Buying Life Insurance for Foreign Nationals - Aegon Life

If you have just moved to India, you might want to start looking for a new insurance policy, while keeping some important things in mind.

If you are a foreign national moving to India for the first time, you have a lot to catch up. When residing in India as a foreigner, you have to adhere to a different set of rules. Though you may enjoy the benefits at some places, you might also face difficulties at times. Moreover, important things like banking and legal formalities might confuse you to the extent that you might feel like an alien.

Among the many things on your list, you might be considering to purchase an insurance policy at the earliest, which brings us to the main point, are foreign nationals allowed to take life insurance policies in India? The answer is yes, the Indian government has made some provision in the laws, which allows foreign nationals to buy life insurance in India.

There are many companies in India that offer insurance to foreign nationals. Furthermore, there are various types of insurance policies that you can choose from. So before you head out to buy, there are a few things which should be considered:

  1. Bank account: Before you buy a life insurance policy, you need to know that the premiums deducted for the policy rely on auto deductions. This means that the premiums will be deducted automatically from your bank account on the duration agreed. For this, you need to have an account with an Indian bank, and as a foreign national, the process of opening a bank account for you will be a bit different than otherwise. You can opt for a Foreign National (FA) savings or current account.
  2. Insurance provider: As you are new to India, you might see a wide variety of insurance providers apart from the familiar ones. If you think that the familiar ones will provide you insurance on similar terms, you might be mistaken. Insurance providers who are based from out of India, change their terms and conditions, to make it suitable for the Indian audiences. There are insurance companies that provide best insurance policies at low premiums.
  3. Gather Information about taxes: If you have moved to India due to professional delegation, it is very important to know about the basic taxation policies. People in India keep a track of taxation policies to avoid being over charged for insurance policy. Moreover, they file returns on time to get deduction benefits from insurance policies. To avoid getting taxed in India, as well as your native country, you can take the help of Double Tax Avoidance Agreement (DTAA).
  4. Claim process and duration: When you are away from your home town, you need to make sure that you are well-equipped financially, because if you get in any kind of problem without money, you might face a really hard time managing in India. Moreover, if there is a medical emergency, you need to ensure that you have enough money for the entire procedure. You can get such assurance from a life insurance policy, but at the same time you need to make sure that the claim process does not take long. You can confirm the claim
  5.  process from the claim ratio of the company.Medical Examination Procedure: There are two ways to get your medical examination done. One, you come to India, and your insurer will bear the medical expenses, while the second option is to do it overseas, and send the report to the insurance company in India. In the second case, you would have to bear the cost, unless you are buying a policy targeted specifically for non-residents, in which case, the insurer would have tied up with an overseas medical facility for the purpose.

Owning a life insurance policy is very important, especially when you are far from home. If you are unsure about the insurance amount, you can take the help of human life value calculator. You can opt for Aegon Life’s iTerm plan that offers cover at low premiums

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