Being an Indian NRI employed in Saudi Arabia or Kuwait, life remains more or less hectic with work, family life and planning for the future finances. A crucial choice that often remains pending is purchasing life insurance. But as everybody advises – don’t wait for a good time to insure your family; the good time is now.
If you’re wondering if purchasing life insurance when abroad is a good idea, the answer is yes. But there are some things that you must and must not do if you’re looking into NRI life insurance Saudi Arabia or life insurance plans for NRIs in Kuwait.
In this blog, we’ll guide you through everything that you need to know, in plain words, just like a friend would tell you
Why NRIs Need Life Insurance
Just because you are living outside India doesn’t mean that your responsibilities have vanished. In fact, most NRIs have even greater financial obligations – home loans, elderly parents in India, children’s education and long-term retirement savings.
Life insurance assists you with:
- Securing your family in the event of an unexpected occurrence to you
- Protecting obligations such as home or personal loans
- Assuring your child’s future
- Creating long-term savings if you choose investment-linked plans
Do’s While Purchasing Life Insurance as an NRI in Saudi or Kuwait
- Purchase from a reputed Indian insurer with NRI facilities
Several popular Indian insurers – such as LIC, HDFC Life, ICICI Prudential and Max Life – issue special NRI policies. They can be purchased overseas (either online or through registered representatives) and are subject to Indian regulations, which is beneficial for settlement of claims and tax saving in India.
Search for insurers who know NRI life insurance in Saudi or life insurance plans for NRIs in Kuwait and have seamless onboarding, digital premium payments and international claim settlement.
- Make sure the policy covers life as well as critical illness
Some term insurance plans for NRIs come with riders, like critical illness, accidental death or permanent disability. These are very useful, especially if you’re working in high-risk sectors or planning to stay abroad long-term.
- Use NRE/NRO accounts for premium payment
To keep things smooth, pay premiums using your NRE or NRO account in India. This keeps your finances clean and also your policy in line with Indian tax regulations.
- Find out if your medicals can be conducted abroad
Most life insurance policies have medical tests. The silver lining? Several insurers permit NRIs in Saudi Arabia and Kuwait to have their medical check-ups in local approved hospitals or clinics.
Verify with the insurer if they facilitate this before applying. It makes things much easier.
- Update nominee details
Always state the right nominee in your policy – mostly your child or parent. Ensure the contact information and status of the relationship are stated clearly.
In the event of any untoward incident, this small step can help save your loved ones much hassle while processing the claim.
Don’ts While Purchasing Life Insurance Overseas
- Don’t depend solely on cover provided by your employer
Most NRIs employed in Saudi Arabia or Kuwait receive basic life insurance from their company. However, these are temporary and most likely not sufficient to help your family in the long term.
Purchase a personal life insurance policy that remains with you regardless of where you work or relocate next.
- Don’t wait thinking it’s “too early”
It’s easy to believe, “I’m young and healthy, I don’t need insurance now.” But things turn out differently, and the sooner you purchase, the more your premium will be reduced.
Also, you just never know when a health issue may arise and jack up your insurance rate, or disqualify you completely.
- Don’t conceal any information
While applying for a life insurance policy, be 100% honest about your health, habits (like smoking or drinking) and occupation. Any false declaration can lead to claim rejection later.
Transparency helps protect your family when it matters.
- Don’t ignore policy terms
Many people skip reading the fine print. Understand the lock-in period, premium payment frequency, policy term and payout conditions before signing.
If you are not sure, ask your agent or customer care to put it in simple terms.
Special Tips for NRIs in Saudi and Kuwait
- Opt for a policy that provides online viewability of your documents and payment history.
- If you are likely to come back to India in a few years, opt for a policy that both residents and NRIs can easily adapt to.
- Opt for term plans if you are seeking only protection, or ULIP/endowment plans in case you are seeking growth through investments as well.
- Keep a digital and physical copy of your policy and inform your family about where you have stored it.
Final Thoughts
Living in Saudi or Kuwait provides many Indian NRIs the opportunity to earn good and save for a better future. But financial planning means securing your family’s future, and that begins with the correct life insurance.
Whether you are searching for NRI life insurance in Saudi Arabia or life insurance plans for NRIs in Kuwait, use the above dos and don’ts to make the right decision for your case. Consider it not only as a cost, but as a present of peace of mind, for yourself and for the loved ones who count on you.
