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Term Insurance for returning NRI

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24 Aug, 2021 by  Swatanter Saraswat

Dear Team ,


I want to understand if an NRI is returning back to India how can he get a term insurance and if he opts for one, do we need to show any proof of income .

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Term Life Insurance

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NRI are treated at part with resident indian for most of the plans. Yes , regular flow of income ( be it salary or other sources ) is an essential criteria for giving insurance cover.b

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Yes, you are eligible to buy term insurance in India.


For term insurance, proof of income is required and to be specific, it should be skill based income like salary or business income or professional income. Rent and interest income are not considered as income for the purpose of term insurance.


Thanks

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27 Aug, 2021

Dear Swatanter

Yes , an NRI can get term insurance as normal India by providing documents as below :

1. Proof of income generation because pure risk term cover need credentials that insured is an income generating asset . This can be established through ITR , salary slip , form 16 , bank entries etc . This is done to avoid any moral hazard .

2. Proof of education . Many insurer insist on graduation as minimum education , once again this is done to avoid moral hazard. No one shpuld misguide and take advantage of arrangement.


So ensure that NRI is able to provide both proofs for insurance in India .

Hope this clarifies


Shailesh

Insurance Samadhan


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30 Aug, 2021
Swatanter Saraswat
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31 Aug, 2021

Dear Swatanter

Interest , rental or income from passive sources is not considered income generation .

Income from Mutual Fund or shares can be called income but you need to establish that you are an active trader .

Ideally only professional traders are given term insurance on the basis of income from shares or mutual fund .

Hope this clarifies

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