Your Money | Better for NRIs to buy term plan here; not only are premiums lower in India, there’s GST waiver, too

financialexpress.com:

A term plan is as critical a requirement for non-resident Indians (NRIs) as for people living in their home country. It is all the more crucial for NRIs who might be away from their roots but would want to shield their family. With a term plan, you ensure that your loved ones are not burdened with financial liabilities even if you are not around.

NRIs can buy a term insurance plan from India, or from the country that they reside in. There are pros and cons for both, but term plans in India are designed keeping the requirements of the Indian population in mind, whereas plans in their country of residence are designed with their citizens in mind.

The add-ons or riders that can be bought for a bit of extra premium are also designed to provide an extra layer of security keeping specific needs in mind. So, the features of the plans available in India would be more aligned with the needs of NRIs. A term plan from an Indian insurer makes a lot of sense to provide financial protection for their Indian family, especially if the NRI is the sole or the primary breadwinner. There are, of course, other reasons too.

Affordability: Term plans in India are way more affordable than abroad. In fact, by purchasing a plan from India, NRIs living in UAE or Singapore can save up to 50-60% in premium cost. Similarly, those living in America and Europe may have to pay two to three times more for the same coverage if they buy a plan in their country of residence. Also, there is a GST waiver for NRIs, saving them 18% in taxes. But the most important reason for affordability is the constant innovation by Indian insurers, which has led to a plethora of options for different needs at different price points.

Accessibility: Earlier, NRIs could