Medicals for NRIs while applying for Life Insurance

The Foreign Exchange Management Act (FEMA) allows NRIs to buy life insurance policies in India¹. They can choose a suitable policy and invest in it for their coverage needs. Moreover, with the different types of plans available, NRIs can also build up a corpus for their financial goals besides enjoying insurance coverage.

However, when buying a life insurance policy, NRIs have to consider a lot of factors. Some of these factors include the premium, the mode of premium payment and the medical check-ups required for the coverage.

Life insurance plans might require NRIs to undergo health check-ups before issuing the policy. This is done to assess the risk that the NRIs present and for medical underwriting.

When it comes to medical check-ups, NRIs have two options¹. Let’s understand –

1. Getting medical check-ups in their resident country (H3)

The first option is getting the health check-up done abroad, in the country that the NRI resides in. In such cases, the NRI will have to get a medical check-up and send the medical reports to the insurance company in India. The cost of the check-ups and couriers will be borne by the NRI¹.

2. Getting medical check-ups in India

NRIs can also buy a life insurance policy when they are visiting India. In such cases, the medical check-ups can be done at a domestic clinic and the cost of such check-ups is borne by the insurance company. This makes it easy for NRIs to avoid the cost of medical check-ups abroad and also send the reports back to India.

Telemedical – An Innovative Solution For Medical Check-Ups

Thanks to the rapidly advancing technology and the popularity of the internet, many insurance companies have introduced the concept of telemedical check-ups for quicker policy issuances.

Under a telemedical check-up, NRIs can connect with an insurer’s designated medical examiner over a phone or video call. The medical examiner asks several questions to determine the NRI’s current health status. Moreover, a video call allows the medical examiner to check the physical condition of the NRI and make deductions based on the same.

Telemedical check-ups are beneficial for both the insurance company and the NRI. Here’s how –

For the insurer –

1. It allows quicker check-ups for quicker policy issuances

2. May lead to better conversion rates when there are no complex medical check-ups and a call can solve the requirement.

For NRIs –

1. They don’t have to bear the costs of the medical check-up

2. The check-up can be done at a convenient time

3. Since the process is done in real time, it allows quicker underwriting and NRIs can get the coverage at the earliest.

However, telemedical health check-ups also pose several problems–

1. They might not present a complete estimate of the proposer’s health. Internal medical issues cannot be detected over a call

2. In the case of very high sum assured, older age or existence of a medical condition, telemedical check-ups might not serve the purpose adequately

3. Some insurance companies may not offer a telemedical check-up facility. Thus, NRIs might not find many coverage options offering the said facility.

What should NRIs do?

Medical underwriting is an important part of the policy issuance process. If the insurer knows the medical risks you present in advance, there would not be hassles at the time of claim settlements. So, if there’s a requirement for medical check-ups, assess your options. If you are not planning to come to India anytime soon, get the check-up done abroad. the costs incurred would be low compared to the coverage benefits that you would get. On the other hand, if you are planning to visit India soon, you can buy the policy when in India and avoid the costs of international check-ups.

Also, check if telemedical check-ups are available and if you are eligible for the same. If you are, you can schedule a video or phone call and get the medical check-up formality completed in no time.

Complete the application formalities and buy a suitable life insurance policy to enjoy insurance protection and financial security with or without medical checkups.

Reference

1.https://www.livemint.com/money/personal-finance/key-factors-nris-should-consider-before-buying-a-life-insurance-policy-11642611828485.html#:~:text=Medical%20examination%20cost%3A%20NRIs%20can,bear%20the%20medical%20examination%20costs.

Other sources

1.https://mintgenie.livemint.com/news/personal-finance/nris-can-buy-term-insurance-without-having-to-bear-the-cost-of-medical-examination-151655470527702

2.https://indianexpress.com/article/business/banking-and-finance/how-nris-can-buy-a-life-insurance-plan-in-india-5678196/

3.https://economictimes.indiatimes.com/nri/invest/should-nris-buy-health-insurance-in-india/articleshow/83602536.cms?from=mdr

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