Diverse insurance plans for NRIs opting for retired life in India

These days, many people are going abroad wherever they get better opportunities. Out of their earnings overseas, they would like to invest a considerable portion in their native country. In the process, they look for the best investments so that they would meet their needs after retirement. Against this backdrop, let us take a look at the plans that suit the NRIs' needs.

Hyderabad: NRIs need to get ready a list of diverse investments if they have plans for retirement in their motherland that is India. The list should include assured returns plans, Unit-linked Insurance Policies (ULIPs), investment assurance and annuity plans. A little research should be done about these plans. They should get an idea about their conditions. While taking part in the economic growth of their native countries, NRIs should aim at investments that yield good benefits in the long term. Investing in the right plan in the right way is very important.

For NRIs earning abroad, returns guaranteed policies are suitable. These plans earn more compared to fixed deposits, besides being accompanied by insurance coverage. Moreover, you have a prior idea of how much the policy yields on maturity. NRIs can take this policy for a period of over 45 years, taking advantage of the long-term opportunity.

Moreover, an arrangement can be made to get monthly, quarterly, half-yearly or yearly income in case anything happens to the policyholder. A total sum can also be claimed in one go. As a result, the policyholder gets greater financial security. Part withdrawals can be made to meet the higher education needs of children, their marriage and home loan repayments. All income under this plan is exempted under section 10 (10D) of the Income Tax Act. NRIs aged 18 to 60 can take these policies by fulfilling KYC conditions. Those holding non-residential external (NRE) accounts can claim GST refunds, which is an additional advantage.

NRIs can prefer Unit-linked Insurance Policies (ULIPs) if they want insurance and investment in one place. Part of the premium is retained for insurance protection while the remaining will be diverted for investing in the stock market. Insurance protection will start from day one of taking the plan. NRIs can avail of this plan to invest in the Indian stock market. This may generate higher income when compared to guaranteed returns plans. Long-term investments will create opportunities for good income. Funds can be changed depending on the market performance. Partial withdrawals can be made after five years. When choosing ULIPs, you have to submit the required documents as per KYC conditions. Consult the insurance firm and take a decision.

Some policies offer ULIP advantages together with guaranteed returns. NRIs investing for the first time can go for this. These plans invest 50 to 60 per cent in debt funds and the remaining in equities. So, they will ensure dual advantages of protection in debt plans and returns that come in equities. The capital guarantee plans give 100 per cent assurance for premium. In addition to these, there are pension-yielding annuity plans. With a lumpsum investment, we can get monthly, quarterly and yearly pensions. One can invest in long-term plans that give pensions after a fixed time. Some plans provide pensions instantly. NRIs unwilling to take risks can go for these plans, says Vivek Jain, Head, Investment, Policybazaar.com