Are you living in foreign and need to get LIC insurance in India? Or you are not sure if you will be given LIC in India or if you can invest in the same by foreign currency or not? Do not worry! Let's make it easier and get the answer to your every question?
For most of the Indians, life insurance persists as one of the most popular and common financial plans that citizens invest in. And not only Indians who are living in India but Indians who stay outside India also prefer to invest in insurance. NRI also knows the value of life insurance to preserve the financial requirements of their family members.
The Foreign Exchange Management Act (FEMA) has approved Non-Resident Indians (NRIs) and people of Indian Origin (PIOs) to buy term insurance plans in India. So if you are an NRI and are looking for a LIC insurance policy from India, then there are so many interesting plans offered by various LIC to NRIs.
LIC Policy for NRIs
The Life Insurance Corporation of India (LIC) allows several flexible plans to assure that its policyholders can avail benefits the most from any insurance. The organization has many specific provisions when it seems to give coverage for non-resident Indians (NRIs) or people of Indian origin living in other countries.
If you are an NRI and want to take LIC insurance or if you are a LIC policyholder who wants to move foreign, you must go through some LIC terms to easily make it possible. LIC has attempted to provide essential points relevant to Non-Resident Indians (NRI) and People of Indian Origin having foreign nationality and living in foreign countries ( FNIOs). Let’s go through their rules and regulations to understand how an NRI can buy LIC insurance easily!
Let’s take a look at the common guidelines about coverage for NRIs.
1. A non-resident Indian is a resident of India temporarily living in the country of his/her existing residence and having a genuine passport declared by the Government of India.
2. To take a LIC, NRI does not have a green card or he/she should not have any plan to apply shortly for obtaining citizenship of his /her current country of residency or any other country.
3. It is explained that People of Indian Origin having foreign citizenship and living in foreign countries FNIOs/ Green cardholders are not recognized as NRIs to provide insurance.
4. Policies are declared in Indian currency only. But our Branches and Joint Venture Firms take policies in their local currencies.
5. Policies will be provided to NRIs in their visits to India to complete all the formalities. And in such time, they are handled as an Indian Lives to provide insurance.
6. NRIs can also apply for insurance in the country they are living presently to complete all the formalities and this process is known as Mail Order Business.
7. NRIs permitted at least Sum Assured of Rs. 10 lakhs and maximum would be based on conditions of insurability. But, under mail order business, the highest sum assured would be restricted to Rs. 3 Crore only.
8. If the sum assured is high or if the plan is presented by Mail Order Business then NRIs have some documents like income certificate or income tax returns, employment certificate with emoluments in it, Certificate from Chartered Accountant, Personal Financial Questionnaire (PFQ), etc.
9. NRIs can also take Non-Medical (Special) plan with some restrictions
LIC policies are the most preferred finance mechanisms for Indians. As LIC policies give coverage everywhere in the world, there is no point to quit your policy except you plan on giving up Indian citizenship. LIC also runs an NRI center to help policyholders existing in a foreign country. If you have any further queries on how to handle your LIC policies as an NRI or while going outside India, you may ask a LIC advisor to guide you more.
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