Sum Assured in NRI Life Insurance

One of the most important insurance plans, life insurance protects your loved ones even when you are not around. Whether you reside in India or are an NRI, a life insurance plan is a must-have to ensure a safety need for you and your loved ones. If you want to know all about NRI life insurance plans and are unsure when to raise the sum insured, then this blog is for you. Read on to know more.

What is the Sum Assured in Life Insurance?

When you are buying a life insurance plan, there are different terminologies that you should know about, including sum assured. Sum assured refers to the maximum amount that the insurance company pays out to the nominees in case the policyholder meets an unfortunate demise. The sum assured can be chosen by the policyholder to get adequate coverage for their loved ones. There are a number of factors you need to consider while choosing the sum assured such as income, financial dependants, age, and a few others. Even NRIs need to be careful when they are choosing the sum assured along with their life insurance policy. 

When Should NRIs Increase Sum Assured in Their Life Insurance Plan?

If you are an NRI and not sure about the sum assured you have chosen in your life insurance plan, then there are a number of factors you need to consider. Listed below are some of these factors:

• Lifestyle: Lifestyle is one of the crucial factors affecting the sum assured of your life insurance plan. This is because it is your lifestyle that directly affects the sum assured of life insurance plans. So, if you are moving to a new country and there is a change in your lifestyle, you need to re-check the sum assured of your life insurance plan. For instance, if you are shifting to a new country which is more prone to dangers or has bad weather, then you can talk to your insurer and change the sum assured of your life insurance plan.

• Income: Your income can directly affect life insurance coverage. Typically speaking the income will change if you are shifting to a new country, which is why it becomes important to also assess the life insurance coverage and sum assured as well during such a situation. As an NRI, If your income has increased, then it is now time to also increase your sum assured. Doing so will ensure that your NRI life insurance plan will provide the right coverage to your loved ones.

• Pre-existing Medical Condition: If you have any kind of pre-existing medical conditions, then you must buy a life insurance plan with a higher sum assured. Any kind of pre-existing medical conditions such as hypertension, diabetes, and others directly affect the life insurance sum assured. You should thus regularly get your health check-up done even if you are an NRI and accordingly increase or decrease the sum assured of your life insurance plan.

• Inflation: Another factor that you need to consider while determining the sum assured is inflation. Inflation directly affects the medical costs as well as other expenses. Thus, during such times, you need to increase the sum assured of your life insurance policy.

• Financial Dependants: Even if you are an NRI and are planning to start your family, then it is also the time to assess the sum assured of your life insurance plan. So, if you have a family or financial dependant, then increase the sum assured of your life insurance plan.

Thus, consider all the above-mentioned factors and accordingly increase or decrease the sum assured. 

How Can NRIs Increase the Sum Assured of the Life Insurance Plan?

Here are the steps you as an NRI need to follow to increase the sum assured of your life insurance plan:

• Inform Your Insurer: First and foremost, you need to inform your insurance company in case you need to change the sum assured of your life insurance plan. You should tell the insurer about the changes you want to make in your sum assured as well as reasons for the same.

• Submit Relevant Documents: You also need to submit the relevant documents such as recent medical reports, area of residence, and others. 

• Pay Additional Premium: Next, you need to pay the additional premium amount. This step is important because doing so will accordingly make changes in the sum assured of your life insurance plan. When you complete the premium payment, you will be able to get details of your updated life insurance policy.

Benefits of NRI Life Insurance Plans

Listed below are some of the reasons why you should consider buying NRI life insurance plans:

• NRI life insurance plans provide death benefits to the nominees in case the policyholder meets an unfortunate event.

• NRIs can also enjoy tax savings with their life insurance plan. Tax benefits are provided on the premiums paid towards NRI life insurance plans.
• With the NRI life insurance plan, you will also be able to enjoy flexibility in terms of choosing the premium payment frequency, policy term, and others. 

Take Away

So, evaluate all the factors and accordingly make changes to your NRI life insurance plan. You can also contact us at InsuranceDekho to get support in buying the best life insurance plan. 

FAQs

• When should NRIs change the sum assured of their life insurance policy?

Depending on factors like income, pre-existing medical conditions, and others, NRIs can make changes in their life insurance policy.

• Do I need to inform my insurer to make changes in the sum assured of the NRI life insurance plan?

Yes, you need to inform your insurer to make changes in the sum assured of the NRI life insurance plan.

• Do I need to pay a higher premium if I increase the sum assured of the NRI life insurance plan?

Yes, you need to pay a higher premium to increase the sum assured of the NRI life insurance plan.