I have been working in Dubai for two decades now and plan to return to and settle in India with my family, next month. I plan to buy an insurance policy for myself. What is the usual procedure to take life insurance? Can the initial premium be paid through foreign currency?
Vivek
Any Non-Resident Indian (NRI) can invest in a life insurance policy in India to meet their life goals. However, policy issuance will be subject to applicable underwriting guidelines of the company and other applicable laws.
You may purchase an insurance policy on the company’s own website or through an online aggregator by filling up the proposal form and uploading the required documents. Alternatively, you may contact an authorised sales representative of the company/an insurance consultant during your visit, in India, who can advise you to purchase the most suitable policy as per your financial goals.
Mandatory documents:
a. Proposal form
b. Copy of the passport
c. KYC requirements:
· A recent photograph
· ID & Address Proof
· Income Proof (as applicable)
· PAN / Form 60
d. Foreign Residency Supplementary Questionnaire (NRI Questionnaire)
You can make the premium payment either in Indian currency via online or offline modes, or in foreign currency via a SWIFT transaction. The maturity proceeds from a life insurance policy are generally exempt from Income Tax, subject to the conditions mentioned in Section 10(10D) of the Income Tax Act, 1961.
The writer is Chief - Operations and Customer Experience, Bajaj Allianz Life Insurance
Send your queries to insurancequeries@thehindu.co.in