Business & Investments

Living abroad is exciting, brings higher earning capacity and a flavour of new cultures. For most Indians employed in the Gulf, particularly in nations such as Kuwait and Saudi Arabia, the desire to secure a secure financial future in the backyard of their families remains a prime goal.

But with high-paying jobs, remittances and avenues for investment, one essential financial product tends to be relegated to the sidelines - life insurance. If you are an NRI working in Kuwait or Saudi Arabia, here's why this has to be the first thing on your investment list.

The Safety Net You Didn't Know You Needed

Let's face it - life is unpredictable. Regardless of how secure your employment is or how healthy you are, emergencies don't come with advance notice. When you're away from family, the emotional and financial vacuum in case of any unexpected event can be overwhelming.

Having a good NRI life insurance Kuwait or NRI life insurance in Saudi policy secures your family members from being left in the lurch. It serves as a money buffer that takes care of your family's day-to-day expenses, education and long-term aspirations even in the event of your untimely death.

It also provides you with peace of mind. Having your loved ones protected gives you a clear focus on your work overseas without worrying about what will happen the next day. 

Why Life Insurance Should Top Your Investment List

Although gold, property, mutual funds and FDs are all useful in a portfolio, none provide the peace of mind that insurance gives.

Here's why:

• Immediate Protection: Insurance offers protection from the moment your coverage becomes effective.

• Wealth Transfer: Nominees receive the full amount tax-free.

• Low Premiums, High Value: The sooner you invest, the less expensive it is.

• Financial Planning Tool: Most plans also serve as savings or investment tools.

• Cover for Liabilities: If you've availed loans overseas, your family will not be left with the burden.

Certain policies also provide riders such as critical illness or accidental death benefit, providing you with added protection at a low extra premium.

Particular Benefits for NRIs in the Gulf

Being an expat in the Middle East has its special advantages and disadvantages. The tax-free income is a major advantage, but home country laws may sometimes make it difficult to transfer assets or settle inheritance issues. That's where a life insurance policy in India comes into its own.

• Indian Jurisdiction: Your policy is regulated by Indian laws, providing you with clarity and structure.

• Currency Advantage: Pay in INR, gain on rupee appreciation over some time.

• Nominee Security: Payment directly to nominated beneficiaries with minimal paperwork.

• Global Coverage: Most plans have you covered wherever you are located.

Moreover, insurers also usually provide access to your policy online, online payment for premiums and customer support to make handling your policy simpler, even from overseas.

Selecting the Appropriate Plan

Not all policies are equal. Based on your age, health, financial objectives and dependents, you have to choose from:

• Term Plans- Pure protection at the lowest premium.

• ULIPs- Insurance plus market-linked returns.

• Endowment Plans- Guaranteed maturity benefits.

• Whole Life Insurance- Life-long cover with cash values.

Several providers now provide NRI-dedicated desks to lead you effortlessly.

If you have a particular need such as paying for a child's future education or creating a retirement corpus, a tailored plan can be designed to meet those very needs.

FAQs - Answered!

• Do I have to be present in India to purchase the policy?

 No. Several insurers permit NRIs to purchase life cover online or through approved representatives.

• Can premiums be paid using Gulf earnings?

 Yes. You can pay directly or through NRE/NRO accounts of India.

• What if I am relocating to another country?

 Your policy continues to be valid. Simply give us your updated contact information.

• Will my nominee have any legal issues?

 If your nominee is in India, the payments are made quickly. If abroad, they might need a couple of additional documents, but it's easy.

Real People, Real Stories

Rajesh, a 38-year-old engineer working in Kuwait, had purchased a term plan for 1 crore INR five years before. Unfortunately, he died of a heart issue last year. Due to his sense of planning, his wife was able to continue paying for their children's education expenses, uphold domestic spending and even invest in a small venture in his hometown in Kerala.

Above is not a unique story. It shows that we may not be able to control our destiny, but we can definitely plan for it.

Even the young NRIs in their 20s and 30s are now waking up to the need for early protection. They're securing low premiums and creating a good financial cushion at an early stage of their life.

Final Thoughts

Whether you’re stationed in Riyadh or residing in Kuwait City, prioritising NRI life insurance Saudi Arabia or NRI life insurance in Kuwait is a move you’ll never regret. It’s more than just a document – it’s a promise to your family, a commitment to their well-being, and a smart financial decision.

So, before investing in shares, land or startups the next time around, pause for a moment. Insure what is most valuable. Invest in life insurance today – because your peace of mind is worth it.

Years from now, this may well be the shrewdest financial decision you made while abroad.

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