As an NRI, insurance can sometimes seem to be an unclear issue. But in reality, it’s quite simple.
Most individuals require 4 types of insurance.
You require life insurance if and only if there are people who are dependent on your income stream, or on whom any liabilities you have will devolve in your absence.
So for example, if you have a spouse and children who are financially dependent on you, and in your absence they might not be able to meet their living expenses, then you should get life insurance.
A standard term plan is the best option for you. This is pure life cover and no part of your premium is invested. Premiums of term plans are the lowest in the industry, with the corresponding payout in case of death being the highest, compared to the premium. For example, a 40 year old male would most likely pay between Rs. 16,000 and Rs. 25,000 per annum, for Rs. 50 lakhs of life cover.
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