Unlock Your Dreams: Financial Scheme for NRI Families | Protective Insurance - 1

 

 “They should create financial security so that their family members can carry the current standard of living. Only proper insurance plans can provide them with such financial security.”

In our country, 1.8 crore Indians go abroad in search of job opportunities for their livelihood. Through them, our country gets a huge foreign exchange. From high positions in corporate companies to unorganized workers, many categories work abroad. Indians work in countries in all continents of the world except Antarctica. They are called Non-Resident Indians (NRIs).

Financial security of the family..!

The reason why they go abroad to work is to get higher salaries than in our country. There are many of them who live abroad due to work, separated from their families. Although a few of them get life insurance benefits in the countries where they work, the reality is that most of them do not get any benefits. Therefore, ensuring the financial security of their families is very important. If they die due to unusual causes abroad, the family's income is likely to stop.

In such a situation, they need to create financial security so that their family members can carry the current standard of living. Only the right insurance plans can provide them with such financial security. Insurance plans work by taking into account the mortality rates that occur according to a person's age.

Which insurance plan is the best?

Life Insurance plans are generally available in three types.

Traditional Insurance Plan:

The first is the traditional insurance plan (Endowment / Traditional Policy) plans, which provide coverage and income for the premium paid. That is why traditional insurance plans are the choice of most people. But most financial experts recommend avoiding traditional plans in insurance plans. Traditional types of insurance plans do not provide complete financial protection; moreover, they provide only about 5% income in the long run. This is less than the average inflation rate of 6 percent.

For example, a person who pays Rs. If a policy with a premium of Rs 2,000 is taken out for 25 years, the life cover is only Rs 6 lakh. If nothing happens to the policyholder until the specified maturity period, he will get back about Rs 15 lakh. On the other hand, if the policyholder dies during the policy period, he will get only the policy amount of Rs 6 lakh and the accumulated bonus amount. If the policyholder thinks that he needs more coverage like Rs 1 crore, he will have to pay Rs 32,000 per month (about Rs 3.84 lakh per year) in a traditional insurance plan. Who can afford to pay such a high premium?

This type of investment has advantages such as income tax deduction of up to ₹ 1,50,000 under section 80C under the old tax calculation method, subject to conditions, and tax exemption on the maturity amount received, so those who think of investment as the main thing can take this policy. On the contrary, those who need more coverage at a lower premium should avoid this plan.

ULIP Plans:

The Unit Linked Insurance Plan (ULIP) is the second type of insurance that invests in stocks and bonds according to the risk-taking ability of the policyholder. In this plan, the income will be available depending on the option invested. In stock market investments, the income will be returned according to the ups and downs of the market. In this type of plan, various types of fees will have to be paid. Although this type of plan is also suitable for those who need investment-based insurance, this plan is not suitable for those who need complete insurance for a large amount.

Term Life Insurance Plan:

In this plan, if a premium of Rs. 2,000 is paid per month, a 30-year-old policyholder can get coverage of up to Rs. 2 crore. However, in this plan, the policyholder will not get any money at the end of the policy. If no unfortunate incident occurs to the policyholder during the policy period, no amount will be available.

By joining this plan, which provides high financial security at a low premium, you can achieve the benefits of complete insurance. When the Anna lottery ticket was introduced, he announced, with the aim of popularizing the scheme, "If you win the lottery, it goes to your home. If you don't, it goes to the country."

The money paid in the lottery ticket is not refundable if the prize is not won. If the prize is won, the amount is huge. Similarly, in term insurance plans, the policyholder gets a huge maturity amount to protect his family in case of an accident. On the other hand, if the policyholder does not face any accident, the premium amount paid is not refundable. It is better to understand this properly and take a term insurance policy.

In the above three types of insurance plans, it is important for the policyholder to examine various factors such as his age, premium amount paid, income, coverage amount and choose the right one for him. If Indians living abroad want to get additional coverage at a lower premium, it is better to choose a term insurance plan.

A term plan will ensure that the policyholder's family gets the benefit of complete insurance. This will give the policyholder the peace of mind and courage that he will be able to protect his family after him. If the policyholder dies during the policy term, their family can invest the insurance money and live peacefully with the permanent income they receive.

The family's dream will be fulfilled without being ruined due to the death of an NRI who earns unexpected income. If there is a loan for home and family expenses, that loan can be paid off easily. All goals such as children's education, marriage, and family expenses can be met with the maturity money. It is necessary to take a term plan because of its transparency and simple procedure.

Now we have looked in detail at the advantages of a term insurance plan that helps provide complete financial security to the family. In the following sections, we will look in detail at the important things to consider while joining this plan.