How Life Insurance Can Be Your Financial Foundation?
Purchasing life insurance in India as an NRI in Kuwait is equivalent to building a foundation that helps your loved ones sustain a stress-free life even when you’re not around, while also helping you build a sizeable corpus to plan your return. Here’s how:
Term Insurance for Financial Security
Term insurance is a type of life insurance that provides coverage for a specified duration. Under this type of insurance, the insurer promises to provide a death benefit to the beneficiary in the event of the insured's untimely demise during the policy term. Term insurance is a reliable way to ensure financial security at an affordable price.
Pro Tip: As an NRI in Kuwait, you can also look for term insurance plans with a Return of Premium option that, in addition to the death benefit, also promise to pay maturity benefits if the insurer survives the policy tenure.
Savings-Oriented Plan for Wealth Creation
As an NRI in Kuwait, planning a return to India requires you to build a habit of savings, and this is where savings-oriented life insurance plans come into the picture. You can explore a flexible traditional life insurance plan to enjoy benefits such as:
Guaranteed* Income
Whether it is for a planned return or an emergency, savings-oriented life insurance plans, such as endowment or money-back plans, typically come with guaranteed* returns that can help easily ride out financial challenges.
Longer Protection
Having a life insurance plan in place typically provides longer protection for long-term needs, such as retirement planning and covering children's educational expenses.
Tax benefits
NRIs in Kuwait may also benefit from tax exemptions on premiums paid for life insurance plans and benefits received upon maturity. This can help you build up a tax-efficient corpus in India.
Goal-Based Planning with Life Insurance
Planning a return to India as an NRI residing in Kuwait becomes easier when you select an insurance plan wisely. Multiple savings-oriented plans combine insurance with investment. Take a look at some of the plans you can explore:
Child Plans
Moving back to India would be a life-changing decision for sure. The pressure on your shoulders would be all the greater when you have children. You would want to ensure that wherever you go, you have enough resources to support them. There are specific child plans available that help you accumulate a substantial fund to meet major milestones, such as your child's marriage, education, and other expenses.
Endowment Plan
An endowment plan is a worthwhile option if you want to combine the benefits of insurance and savings. Under an endowment plan, the insurance company promises to pay a death benefit in the event of the insured’s death or a maturity benefit if the insured survives the policy tenure. This way, you can easily build a corpus over the years to meet your long-term needs.
Money Back Plans
A money-back plan is a type of endowment plan with added liquidity in the form of periodic payouts called survival benefits. In the event of the insured's untimely demise, the insurer provides the full death benefit to the beneficiary, regardless of the payout made during the policy tenure.
Therefore, money-back plans are considered a reliable option for both short-term and long-term financial needs like purchasing a house, children’s education and marriage expenses, etc.
Annuity Plans for Retirement Planning
As an NRI in Kuwait, if you are dreaming about a peaceful retirement life in India, then purchasing life insurance is a step you must take today. With proper planning, you can build life cover while also ensuring retirement planning through endowment or Unit-Linked Annuity Plans.
Conclusion
Purchasing life insurance for non-resident Indians is not only about building a life cover but also ensuring a smooth transition back to their homeland. By combining the benefits of life cover, investment, and savings, NRIs in Kuwait can easily plan their return to India. Insurance companies offering flexible life insurance plans have made goal-based planning easier for NRIs, whether it is for life coverage, periodic returns, or retirement income.
If you are planning to return to India in the coming years, exploring life insurance plans in India is something you should not miss.
FAQs
What types of life insurance plans support return planning for NRIs in Kuwait?
NRIs in Kuwait planning a return to India can explore various life insurance plans, including term insurance, endowment plans and money-back plans. These plans are designed to offer financial protection as well as gold-based investment options.
How can savings-oriented life insurance plans help NRIs in Kuwait to plan a return?
Savings-oriented life insurance plans are designed to combine the benefits of life cover and wealth creation. NRIs in Kuwait can take advantage of these dual benefits to build a corpus for a seamless transition back to India.
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