1. Is it mandatory to opt for riders when I buy a life insurance policy?

No, riders are optional, and you are not mandated to opt for them. There may be plans that offer an in-built rider, so you can decide if you wish to go ahead with that. Do keep in mind that riders or add-ons enhance the coverage of a life insurance policy at a nominal charge. There are options such as premium waiver, accidental death and disability, critical illness, etc, that you can consider.

2. What will happen to my life insurance policy if I move base from Singapore?

As an NRI, when you buy an insurance policy in India, in most cases, your policy will still remain valid even if you move to a new country. However, do keep in mind that you should inform the insurance company about your plan to change your country of residence. The relocation may impact the terms and conditions of your policy.

3. As an NRI in Singapore, how can I choose the right life insurance plan in India?

The Indian insurance landscape has seen some very positive transformations in the past few years. Digitization has made buying life insurance very easy and simplified. You can purchase a policy while you are in India or even Singapore. Both online and offline ways of buying life insurance are available.

Life Insurance Plans for NRIs in Singapore

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They are becoming an integral part of Singapore’s vibrant community. Highly paid jobs², low taxation policies¹, and access to high quality of life³ is what attract thousands of Indians to Singapore every year.⁴

With this migration, while NRIs in Singapore do build enough for their present, for many, the actual peace of mind comes with the assurance that they are doing enough for their family. For NRIs in Singapore who have dependent loved ones in India, they often look for ways to keep their family financially safe even when they are no longer around.

In such a situation, having life insurance in India helps them meet their financial commitments for their loved ones. The main advantage of buying a life insurance plan is that it pays a lump sum amount of money to your loved ones in case of the insured’s unfortunate death. The family can become financially capable of coping with the tragic loss of the primary earner in the family.

Along with coverage, life insurance can be a tailored plan with extended benefits at affordable premium prices. Life insurance plans can prepare NRIs in Singapore for their retirement and other financial obligations, whether in India or Singapore.

What is a Life Insurance Plan?

Life insurance is an agreement between you and your insurer. You agree to pay a certain premium for a certain period of time, in exchange for which the insurer offers you life coverage for the specified policy term. In case some unfortunate event takes place during this term, the insurance company pays a lump sum amount to the appointed nominee. The amount is the sum assured that is chosen at the time of policy purchase, and is also called the death benefit.

In case you, the insured, outlive the policy term, the policy comes to an end. Depending on the type of policy that you choose, there may be a maturity benefit. As an NRI in Singapore, there are several life insurance options that you can consider to get yourself the best plan.

When it comes to choosing a life insurance plan, understanding the different types of plans is important. Also, read the policy’s wording carefully to know about the policy’s coverage, inclusions/exclusions, and limitations so that you can make a well-informed decision. For NRIs in Singapore, it becomes all the more essential

Also, keep in mind that the younger you start with a life insurance plan, the lower the premium amount you have to pay as an NRI in Singapore. Let’s understand the different types of life insurance plans available in India:

Here are the different types of life insurance plans in India ^{[5] and [8]}:

Term insurance plan

One of the basic life insurance plans that provides coverage for a fixed period. These plans usually don’t offer any maturity benefits, making them more affordable. However, if you choose the refund of premium option, the premiums paid are returned on maturity. Term plans provide life coverage and pay a death benefit if the life assured passes away during the policy term. NRIs in Singapore can also buy term plans in India at lower premiums and enjoy the benefit of rupee-based investments while protecting their families.
Endowment policy

This is a savings-oriented life insurance plan which covers the risk of premature demise and also has a maturity benefit. If the life assured passes away during the policy term, a death benefit is paid. On the other hand, if the life assured is alive when the policy matures, a maturity benefit is paid.
Unit Linked Insurance Plan (ULIP)

This plan offers dual benefits—life insurance coverage and wealth building. Premiums are split between life cover and investment, allowing the policyholder to participate in the financial market and earn market-linked returns. There are also the flexible benefits of partial withdrawals and switching. ULIPs are popular among NRIs as these plans allow investments in market-linked funds alongside providing life insurance cover and tax benefits under Indian tax laws.
Money Back Policy

Similar to an endowment policy, but with periodic payouts during the policy term. These survival benefits are distributed over the policy's duration.
Whole Life Policy

This insurance policy offers coverage for the life assured's entire life. The policy covers the life assured up to 99 or 100 years of age. In case of death during the coverage term, a death benefit is paid. However, if the life assured survives the tenure, a maturity benefit is paid.
Child Plan

Child plans secure a child's financial future and often include an inbuilt premium waiver, where the insurer covers premium payments if the parent passes away, ensuring the plan continues.
Annuity/Pension Plan

Annuity Plans accumulate premiums as assets and pay them out as regular income (annuity) or a lump sum after retirement, based on the policyholder's preferences.