Why purchasing life insurance plans in India is convenient?
You might be living in the US, but if you have family in India, whether it's your spouse, children, or even ageing parents, a life insurance policy from India can be suitable. The policy is issued in India, covers you worldwide, accepts premiums in Indian Rupee (INR) and also settles claims in INR.
You can buy the policy online from the US or from any other part of the world and in case of claim settlement , your family back home can get the policy benefits in INR. They can use the death benefit for their needs or goals when you are not around.
With a policy in India, your family back in India might access the benefits more easily compared to a policy taken out in the US. Moreover, there would be no need for currency conversion and the risk of exchange rate fluctuations at the time of claims, allowing your family instant access to the corpus in their local currency.
Smooth Claim Settlement & Nomination Process
During purchase of the policy , you can nominate your loved ones living in India to get the policy benefits after your demise. The nomination process is simple. All you have to do is mention the nominee’s name in the proposal form when buying the policy. You can also update the nominee, if needed, if you get married or have children. In the case of a claim, your appointed nominee can start the claim process in India and get the policy benefits quickly.
For claim settlement your nominee can inform the insurer of your demise, fill out the claim form, and submit the documents required by the Insurer to initiate the claim process.
We at Bajaj Allianz Life aim to settle the claims quickly and efficiently so that your family gets the benefits at the earliest.
Cost Efficiency
Buying life insurance policies in India can turn out to be cost-effective than buying life insurance in the US1. This is because of two main reasons. One, premiums in India tend to be lower than premiums charged by international insurance companies in the US1. Data suggests that Indian term insurance policies can be 30% to 50% cheaper than policies in the US1.
Secondly, with the US Dollar stronger than the INR, you can find the premium payable pocket-friendly in terms of US Dollars. This can increase your purchasing power and allow you to opt for a higher and optimal sum assured for better financial protection.
Plan Payouts
Under many life insurance plans, you have the option to receive the maturity or death benefit in the form of instalments. Some plans can offer regular monthly incomes up to a specified period, while others can allow you to take the benefit in a lump sum or in a combination of lump sum and monthly incomes.
Moreover, if you choose money-back life insurance plans, you get periodic payouts in the form of survival benefits.
When planned correctly, your family can get regular income to support their lifestyle needs or you can use the survival benefit from money back plans for meeting life goals at specified times.
Multi-Gen Strategy for Kids in the US
If you have kids, you might want to secure their financial future in your absence. Life insurance child plans can come to your aid in this regard. You can buy a plan and opt for the waiver of premium rider at an additional nominal premium and secure a corpus for your child’s future needs.
With various child insurance plans available, you can pick a plan that matches your risk appetite and financial strategy and create a corpus for your child’s education, marriage, or other needs.
Tax- Advantages
Let’s not forget the tax benefits that life insurance policies can offer. You can reduce your tax liability through life insurance premiums, which are allowed as a deduction under Section 80C up to ₹1.5 lakhs. The death benefit that your family might receive in India would be tax-free. The maturity benefit from savings-oriented plans would also be tax-exempt in India under Section 10(10D) if specific conditions are met.
Conclusion
While the United States may offer lucrative opportunities for career or business growth, it’s equally important to plan a strong financial legacy for your family. Bajaj Allianz Life Insurance plans support legacy planning—whether your goal is to secure your family’s financial future in your absence or build a corpus for their long-term financial needs.
So, assess your needs and choose relevant life insurance plans. Buy a life insurance plan with adequate coverage so that you can gift your family peace and financial security.
FAQs
Where can I appoint a nominee - In India or in the US?
You have the freedom to appoint a nominee either in India or the US. Just mention the nominee’s name and relation when buying the life insurance plan.
How to pay for life insurance policies from the US?
You can pay the premiums online through your NRO/NRE bank accounts or through swift transaction that are denominated in INR. You can also make online wire transfers from your overseas bank account, but in such cases, there would be a requirement for currency conversion.
Are medical check-ups necessary to buy life insurance in India?
The requirement of medical check-ups depends on your age, sum assured, medical history, and other factors. The insurance company might require a medical check-up for NRIs. So, find out from the insurer if you have to undergo the check-up.
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