If you do not understand who an expat is, you will surely understand what NRI means. There are numerous challenges that the expat life has in store. Many of these problems turn into long term financial issues. Hence, it is important for an NRI to have financial security.
Term insurance is a must-have product for simple and affordable financial security. This is especially true for an NRI. As a Non-Resident Indian, you may be a bit confused about the various options when it comes to buying a term life insurance policy. However, there are many similarities in how a regular citizen of India and an NRI can buy term insurance. Before you set out to select a policy, you should understand how the process of finding and keeping a term insurance policy as an NRI is different. Here are a few things on how NRIs can buy term insurance plans in India:
- Online presence
You have to make sure that you have the latest information about the insurance plan you are considering and the company that you are potentially buying from. As an NRI, the only source you have to find and verify your insurance company’s information is through online mediums. Hence, you have to first check whether the company has an online presence. If they do, check the information given on their mediums. The details acquired from an official source will help you make an informed decision. Moreover, the insurance provider’s website should allow you to buy and interact with your term plan.
- Claim settlement ratio
The claim settlement ratio is a measure of the amount of insurance claims that were settled by an insurance company. It gives you an idea of how likely the insurance company is to settle your claim. It is a percentage of claims settled from the total claims submitted to the insurance provider. The claim settlement ratio of an insurance company in India is calculated every financial year. The Insurance Regulatory & Development Authority makes this information public. A good claim settlement ratio will give your family the peace of mind that in time of need, the term policy will come through for them. It will also help them receive quick assistance when needed.
- Claims process
The real benefit of a term insurance is only ever realized once the claim has been made. Having the proper claim settlement process can help elevate this benefit of the term insurance policy. The insurance company’s website or other mediums should clearly explain the claims process on the website. More importantly, it should be simple enough for your family to understand. Also, make sure that you can make a claim from the country that you live in.
- Persistency ratio
The persistency ratio of a company is essentially a measure of how much their current customers value them. The value itself shows how many people stayed with the company over the years. Knowing this ratio would mean that you get an idea of the way that the company conducts business and how their customers react to it. If more customers stick with the company, it means that they offer great products and great service. On the other hand, if many people leave the insurance company for a new provider, it means that a large number of people found some flaw or oversight in the company’s service that they decided to not trust them with their family’s financial security.
NRIs are always expected to be people that are living life large. However, that notion is not true at all. While they may have access to a different lifestyle, they still have similar problems and responsibilities. Hence, it becomes important to buy term insurance for NRIs. What becomes more important is to choose the right term insurance.