What You Must Do After Moving Abroad?
After relocating, ensure your premium payment methods are updated, check if your insurer requires additional documentation, and confirm your current contact details. These simple steps help keep your term plan active and valid.
- Inform Your Insurance Provider: First and foremost, let your insurer know about the change of domicile. Update the address, current country of domicile, and your contact information. This maintains correspondence in the open and transparent sense, particularly critical in case any claim is being raised in the future.
- Check for Geographic Coverage and Exclusions: Certain term insurance plans contain conditions regarding high-risk nations or nations with politically or security-wise volatile situations. It's a good idea to go through your policy document or consult an advisor to check if your destination nation is included under your current plan.
This is where a term insurance plan calculator becomes useful. It enables you to reassess your requirements according to your new life situation and location and get the best term insurance plan. - Premium Payment Options for NRIs: As an NRI, there are various easy ways to continue paying your premiums overseas. Whether you earn your income in India or abroad, there are payment options to suit your requirements.
Some of the most popular methods for NRIs to pay term insurance premiums are:
Payment Method
| Details
|
NRO Account
| If income is sourced in India (Non-Resident Ordinary)
|
NRE Account
| If remitting money from abroad (Non-Resident External)
|
International Debit/Credit Cards
| Accepted by many insurers
|
Netbanking/UPI
| Through Indian accounts or remittance
|
To prevent any delay in payments or due dates being missed, ensure your bank details with your insurer remain updated at all times. You may also take advantage of auto-debit facilities, ensuring your premiums are paid automatically on time, helping you relax and stay covered, no matter where you are globally.
4. Tax Implications: If you are an NRI with taxable income in India, e.g., from rent, interest, or investments, you can claim deductions u/s 80C on premiums paid towards a term insurance plan. It's a useful method of reducing your taxable income while ensuring the future of your family.
Also, if there is any bad luck, the death benefit received by your nominee under your term plan is normally tax-free under Section 10(10D). And, obviously, this has a few strings attached, such as the premium cap not being higher than a pre-decided proportion of the sum assured. Thus, while overseas, even your term insurance can keep on providing both financial security and tax advantages back home in India.
