Term life insurance can be an essential financial planning tool for NRIs (Non-Resident Indians) who want to ensure the financial security of their loved ones in case of an unexpected event. However, choosing the right policy can be a daunting task. Here are a few things to consider while considering term life insurance for NRIs:
- Look for a company that supports international claims: NRIs should choose an insurance company that supports international claims. It’s important to ensure that the policy provides coverage not only in the home country but also in the country where the insured lives.
- Stability of the company and how long they are in the business: It’s important to choose an insurance company that has a good track record of stability and has been in the business for a while. This ensures that the company is financially strong and has the experience to handle claims.
- COMDEX rating (80 and above is good): The COMDEX rating is a composite rating that takes into account the ratings of different rating agencies. A higher rating indicates the financial strength and stability of the insurance company.
- A knowledgeable financial professional who can help with the right product & design: It’s important to work with a financial professional who has experience working with NRIs and can help select the right policy and design for their unique needs.
- Riders like Living benefit riders (Terminal Illness, Chronic Illness, and Critical Illness riders): NRIs should look for policies that offer living benefit riders like Terminal Illness, Chronic Illness, and Critical Illness riders. These riders can provide financial support in case of a critical illness diagnosis, helping the policyholder pay for medical expenses and living expenses.
- Cost of coverage: While cost is an important factor, NRIs should not solely focus on the cheapest policy. They should consider the benefits and coverage provided by the policy and weigh it against the cost to ensure they are getting the best value for their money.
- Agent who can support you through the application process, and claim process if needed in the future. Who is committed to helping the community: NRIs should choose an agent who can guide them through the application process and support them in the claim process if needed in the future. It’s important to work with an agent who is committed to helping the community and providing excellent customer service.