Term Insurance for NRIs in Saudi Arabia: Coverage, Eligibility and Key Considerations

Working hard in the Kingdom of Saudi Arabia to create a bright future for your family back home is a dream of every Non-Resident Indian (NRI). However, life is unpredictable, and one never knows what may happen in the future. For people living away from their home country, it may be really stressful to deal with unexpected events. In such a situation, a good financial safety net may prove to be really handy. 

What exactly is term insurance for NRIs in Saudi Arabia?

Term Insurance for NRI in Saudi Arabia is nothing but a pure risk protection plan, which is bought from an Indian insurer. While living and working in the Kingdom of Saudi Arabia, NRIs make small regular payments (premiums) to an insurance provider in India. In exchange, the family members of the policyholder receive a huge sum of money as a lump sum payment upon the death of the insured during the policy term.

A term plan is simply a pure risk protection plan because unlike other traditional endowment plans, it does not provide any maturity benefit if the insured survives till the end of the policy term. However, the financial protection that a term plan offers comes at an amazingly affordable price. Thus, your children can still pursue their dreams and studies after college without any financial worries.

Reasons Why You Should Buy an Insurance Policy from India While Living Abroad

While purchasing term life insurance plans from India may seem odd to you, there are some really convincing reasons why you should do it:

• Costly Premiums: Term life insurance plans sold in the Gulf countries tend to be really expensive when compared to term plans bought from Indian insurers.

• Indian Rupees Claims Settlement: Since the dependents of the insured would be in India, they must have enough Indian Rupees to take care of their daily expenses. An Indian insurance plan would ensure that the nominee receives the claim amount in Indian Rupees directly without any hassles.

• 24/7 Global Protection: Most insurers offer worldwide claim settlement facilities. Thus, whether you are busy working in the Kingdom of Saudi Arabia or enjoying your holidays in your hometown, your policy will always be there to protect your family members financially.

• Easy Online Access: From filling up online registration forms to paying annual premiums, everything can be easily done from the comfort of your home while living abroad.

Basic Eligibility Criteria for NRIs Buying Term Insurance in India

Before buying an insurance plan from India, it is essential for NRIs to understand the eligibility criteria followed by insurers.

• As far as the residency status of the applicants is concerned, only eligible candidates may apply for term life insurance policies in India. The applicants should be Indian citizens holding valid Indian passports. They should also be living outside India as non-resident Indians, overseas citizens of India, or persons of Indian origin.

• Age is another crucial criterion while purchasing term insurance policies. Most insurers allow applications from people aged between 18 and 60 or 65 years. The coverage amount should be selected in such a way that it can cover a person’s financial liabilities till the age of 85 years or 99 years.

• Lastly, most insurance companies require proof of income from the applicants. Insurers want to make sure that the applicants have regular jobs with stable incomes. Thus, applicants may be required to produce documents such as salary slips from their employers in the Kingdom of Saudi Arabia, etc. Having an honest income will enable you to get a higher coverage amount.

Documents Required for Applying for Term Insurance for NRI in Saudi Arabia

Having all the required documents ready before applying for term insurance for NRI in Saudi Arabia is essential. While applying for insurance, you may be asked to provide the following documents:

• Identity Proof Documents: A duly filled and signed passport of the applicant along with the first and last pages of his or her Iqama.

• Address Proof Documents: The address proof of the applicant may include documents such as the rental agreement, electricity bill, and bank account statement from Saudi Arabia.

• Income Proof Documents: The income proof of the applicant may comprise documents such as the latest salary slips, contract of employment, and bank account statements.

• Health-related Documents: The insurance company may ask you to give details of your personal medical history. In some cases, you may be required to complete a medical examination through an online video consultation. Some insurers even ask the applicants to appear for a health checkup in the nearest authorized clinics in cities such as Riyadh and Jeddah.

Ways to Buy and Pay Your Premiums from Abroad

In this age of digitalization and technological advancements, a lot of things can be easily done from abroad without requiring people to go through the hassles of international travel. So, how exactly can you buy life insurance from abroad?

Here are some easy ways through which you can buy life insurance from India:

Researching Online and Comparing Quotes

First and foremost, you need to research online and compare quotes so that you can buy the best possible term life insurance policy.

Filling the Application Form Accurately

After selecting the most suitable term plan for yourself, filling the application form with accurate personal and medical details is of paramount importance. It is essential to give truthful information about your health and occupation since your family members will not have to face any complications while making a claim.

Completing Necessary Medical Exams

If the insurer asks for it, you need to complete the required medical examinations either at an authorized clinic or via video conferencing.

Making Timely Payments of Your Premiums

After your application is accepted, you can easily make the payments of your insurance premiums. 

• You may make the payments of your insurance policy either through your NRE or NRO accounts or through other digital modes of international money transfer.

• Setting up Automatic Debit of Your Future Premiums

• Setting up the automatic debit of your future insurance premiums will help you avoid any complications.

Looking at Things from a Bigger Perspective

When considering life insurance for NRI, it is important to look at things from a bigger perspective. Although buying life insurance policies for NRIs in India is really important, it is also essential for people to keep in mind that other traditional financial products may also be worth considering.

Apart from traditional term plans, there are various other financial instruments such as ULIPs, Endowment Plans, etc. However, a term plan is still the best option available for people looking for pure risk protection. Moreover, tax benefits offered by term life insurance plans for NRIs in India are really hard to ignore.

Your dependents will not have to pay any taxes on the claim amount that they receive from your policy. On the other hand, the premium amount that you will pay will help you save a considerable amount of taxes if you have any taxable income in India.