Term Insurance Plans for NRIs in Qatar

A NRI term insurance plan should offer a sufficient sum assured to support your family in your absence. When buying a term plan as an NRI in Qatar, it is important to check the maximum life cover offered by insurance companies basis your age, income, health status and more. Also, make sure to factor in the inflation when calculating the ideal sum assured for your NRI term plan. If you have any outstanding debts, your term plan must be able to cover the same while leaving ample funds remaining to cover your family’s expenses in the future, should anything happen to you.

Riders and add-ons can help in tailoring a term insurance plan as per your protection requirements. It is a good idea to include add-on riders such as a critical illness rider or a permanent disability rider in your NRI term plan. This way, you can enhance the benefits of your term insurance plan to get protection that is over and above your base plan.

A good term insurance plan for NRIs must also suit the budget of the policyholder. Choose the premium payment frequency whether regular, limited, or single payment as per your preference. Once chosen, it typically cannot be altered. Additionally, most NRI term plans allow you to choose a premium payment frequency such as annual, bi-annual, quarterly or monthly based on what suits your pocket.

A term insurance plan is the most affordable type of life insurance plan that exists. It is because a term plan, for NRIs or resident India, promises only life protection for a certain time period. Unlike a ULIP or a money back plan where investment component also exists with maturity benefits, an NRI term insurance plan extends only the death benefit that can be claimed by the nominee, only in the case of the life insured’s demise.

Along with providing high coverage at affordable premiums, term insurance for NRIs in Qatar come with tax benefits as per the Income Tax Act, 1961. The premiums paid towards the term plan are eligible for 80C tax deductions of up to Rs 1.5 lakhs/annum. If additional premium is paid towards health-related coverage like critical illness, the extra premium paid is eligible for 80D deductions. However, both 80C and 80D tax benefits mentioned above are only available to policyholders opting for the old tax regime. Finally, the life cover amount or the sum assured received by the nominee is exempt from tax as per the provisions mentioned in Section 10(10D).

As per the GST laws in India, premiums paid towards life insurance attract a 18% GST on the same. However, for an NRI, the treatment is different.

The premiums paid by the NRIs towards the term plans bought in India are exempt from GST (Goods and Services Tax) as well. This means that if you are an NRI from Qatar or elsewhere purchasing a term plan from India, you can save 18% GST on premiums for the term plan. This exemption is subject to the submission of all documents required for GST waiver, so it is advisable to get the relevant information confirmed with your insurer.

In the case of some term plans, the policyholder is given the option to defer the due premium for a period of up to 12 months from the due date. During this period, the life cover as well as the add-on rider benefits will stay active. To avail this benefit, it is important that the policy has been in-force for at least 3 years since the policy commencement and all the due premiums have been paid till date.

It is mandatory to establish your NRI status with all applicable documentary evidence when applying for an NRI term insurance plan in India. Typically, you must have a valid Indian passport along with VISA and other necessary documents such as work permit to support the same. That said, persons having a valid OCI or PIO are eligible to purchase an NRI term insurance plan. Since the applicable documentation may vary to some extent based on the insurer, do confirm these with your chosen insurer prior to submitting your application to ensure smooth processing of your application.

The NRI is question must be between 18 and 65 years of age to purchase a term insurance plan for NRIs. A minor is not allowed to get involved in any legal contract and thus the minimum age is fixed at 18 years. Term plans are usually not offered to those in their senior years, i.e. above 60-65 years of age. However, there are some insurance companies that may offer term plan to someone close to 70 years of age as well. Please note that the premiums for those in late 60s will be significantly more expensive than those in their younger years.

The income of the NRI applicant plays a significant role in determining the sum assured available for the term insurance plan. Insurance companies want to make sure that you will be able to pay the premiums regularly. A salaried applicant may typically find it easier to provide valid income proof documents as compared to self-employed individuals when purchasing an NRI term insurance plan.

You can either choose to visit the Axis Max Life Insurance website or contact the Axis Max Life Insurance customer care helpline at (+91)11-71025900 or (+91)11-61329950. Read thoroughly about the NRI term plan features and benefits offered by Axis Max Life and determine whether it suits your protection needs and budget.

Use the online premium calculator for term plan to determine the estimated premium you will be paying for your desired life coverage amount. Once you have reached a suitable combination, you can move ahead with submitting your application.

Provide your personal details, income details, health status (if you’re diabetic or not; smoker or not), and contact details. Once submitted, choose your desired sum assured from the options shown followed by the premium payment frequency. After that, choose the policy tenure/duration along with any add-on riders, if required.

Once you have submitted the aforementioned details, time is to pay the premium. You can choose from different premium payment modes such as credit card, debit card, and internet banking etc.

Upon successful premium payment, the concerned team will verify the documents and approve your application. After approval, you will receive a policy document post which your policy shall commence. Please note that medical tests and certificates are also asked after the premium payment. Depending on your profile and other factors, medical can be performed via video call or in-person at a centre specified by insurer.

If you’re visiting India, it may be preferable to purchase your NRI term insurance policy while you are in the country. This can help ensure all necessary requirements can be checked in person, if required.