Term Insurance for NRIs in Canada

With term insurance, you can choose a coverage that best suits your loved ones’ lifestyle, needs, and liabilities. That coverage amount will be given to your nominee if something unfortunate happens to you. Read on to know and understand how term insurance for NRIs in Canada can be an important part of your financial portfolio.

 

Note: Persons of Indian Origin (PIOs) and Overseas Citizens of India (OCI) can use life insurance to ensure their loved ones in India stay financially secure.

 

Types of Term Insurance Plans Available to the NRIs of Canada

 

A term insurance plan can provide the necessary protection. When you buy the right policy you need not worry about ensuring the financial security and independence of your loved ones. The right coverage allows you to safeguard their aspirations even in your absence. While a term insurance is quite straightforward and easy to understand, there are different types of term plans that you can explore.

If you are an NRI residing in Canada, it is advisable to review the various types of term insurance plans available in India. The following types of plans are commonly available:¹

1. Level term plans – these are the basic term plans where the sum assured remains constant throughout the policy term.
2. Increasing term plans – under these plans, the sum assured increases during the policy term either by a specified percentage or by a specific amount.
3. Decreasing term plans – under these plans, the sum assured reduces during the policy term. These plans are usually issued with loans wherein the decreasing sum assured corresponds to the decreasing value of the outstanding loan amount.
4. Term plans with return of premium – normal term insurance plans usually do not pay any benefit if the term expires and the life assured is alive. However, under these plans, the premiums paid during the policy term are refunded on maturity.