Life is the name of uncertainties and to protect your family’s future, life insurance gives you assurance. For Non-Resident Indians (NRIs) living in countries like Canada and the USA, the question often arises: “Can I get life insurance in India while living abroad?” The short answer is yes, and in many cases, it makes perfect financial sense.

This blog dives into everything NRIs in Canada and the USA need to know about life insurance: who’s eligible, what the benefits are and how to apply.

What Is NRI Life Insurance?

NRI life insurance is specially made for Non-Resident Indians living abroad, offered by Indian insurers. These policies are designed to meet the specific needs of NRIs, offering financial security to their loved ones, who are often based in India and dependent on them.

Whether you live in Toronto, Vancouver, New York or California, if you hold Indian citizenship and live outside India for work, education or permanent residency, you can apply for NRI life insurance Canada or NRI life insurance USA, depending on your current country of residence.

Why NRIs Should Consider Life Insurance from India

You may wonder – why not just get a policy in Canada or the USA? While that’s certainly an option, Indian policies come with some key advantages:

1. Affordability

Premiums for life insurance in India are often more affordable compared to policies in North America. You get good coverage for less, especially if you are buying a term plan early.

2. Coverage in INR

If your dependents live in India, it makes sense for the policy payout to be in INR. It removes the hassle of currency conversion and exchange rate fluctuations.

3. Ease of Application

Thanks to digital platforms and remote medical check-ups, applying for a policy from abroad has become a lot easier.

4. Tax Benefits

While the policy itself may not reduce your tax burden in Canada or the USA, the maturity and death benefits under many Indian policies are tax-free in India under Section 10(10D) of the Income Tax Act.

Eligibility for NRI Life Insurance in Canada and USA

Indian insurers have specific eligibility criteria for NRIs. This is what you basically need:

• Indian Citizenship or PIO/OCI Card
  Indian Policies are made only for an Indian citizen, a PIO or an OCI.
  
• Valid Residency Proof Abroad
  Must carry a Canadian or U.S. visa, PR card or other residency proof is mandatory.
• Age
  Most Indian insurance policies cover people between the ages of 18 to 60 years.

However, some policies cover until the age of 65.

• Medical Tests
  Depending on your age, sum assured and insurer, you may be required to undergo a medical examination. In some cases, these can be arranged in your country of residence or waived based on existing records.
  

Types of Life Insurance Available for NRIs

NRIs can choose from various types of insurance plans:

1. Term Insurance

This is the most popular choice for NRIs. It offers a large sum assured at a relatively low premium and is ideal for financial protection.

2. Whole Life Insurance

Provides lifelong coverage along with a savings component. Good for long-term wealth planning.

3. Endowment Plans

Merges insurance and investment. Part of the premium is spent on life cover, while the remaining amount is invested.

4. ULIPs (Unit Linked Insurance Plans)

Mix of insurance and market-linked investment. Suitable for NRIs who want to grow their money along with getting life cover.

The Application Process: Step by Step

Here are few steps to applying for NRI life insurance in Canada or NRI life insurance in the USA:

Step 1: Pick the Right Policy

Compare the policies on hand with respect to premium, sum assured, tenure, claim settlement ratio and features.

Step 2: Fill the Application Form

Filling accurate information online such as your health, occupation and travel history.  

Step 3: Required Documents

These documents include:

• Copy of passport and visa/PR card
  
• Proof of residency (both Indian and foreign)
  
• Proof of income (bank statements, tax returns)
  
• Age proof (passport or government ID)
  
• Medical reports (if applicable)
  

Step 4: Medical Examination

Depending on the insurer, your location and the plan chosen, a medical test may be required. These are usually done in certified labs abroad or based on telemedical evaluation.

Step 5: Premium Payment

Premiums for insurance can be paid using NRE/NRO accounts. Online payment by international debit/credit card or wire transfer is possible with most insurers.

Step 6: Policy Release

Once the formalities are over and your proposal is sanctioned, you will be issued your policy document through email or postal mail.

Points to remember

• Nominee Details: It’s best to nominate someone living in India to ensure smooth claim settlement.
  
• Currency Fluctuation: Be mindful payouts are in CAD or USD may be a currency risk for you, make sure payment should be in INR.
• Claim Process: Your nominee should know the claim procedure and has access to the required documents.
  

Final Thoughts

Indian insurers have given a gift to NRIs. NRI life insurance Canada and NRI life insurance USA plans offer a unique opportunity to secure their family’s future while living abroad. Digitization simplified processes and flexible premium options, making buying life insurance in India more accessible than ever.

Not today but someday, if you are planning to return to India or want to ensure your loved ones are financially secure, a good life insurance policy is a smart move.

Protect today, for a worry-free tomorrow.