DO NRIs Have the Option of Buying Retirement Plans in India
There are many financial instruments in the market to meet this need. One such option is the PENSION PLAN or Retirement Plan designed by the insurance companies to help individuals plan their retirement more effectively.
Most of the Indians living abroad in many parts of the world to make a living aim and wish to return to India at some stage in their life if not during the early age definitely once they near retirement. Hence, these people would need to plan their retirement in India accordingly.
Since, during the active work life these NRIs largely remain unaware of the financial market and options in the Indian market it is difficult for these people to plan their retirement well.
This increasing wave of NRIs wanting to invest in the Indian market has given the insurers a platform to design and capitalize on the huge potential of tapping the NRIs or the Persons of Indian Origin also known as the PIOs.
How should one go about Planning for Retirement?
1) Early Beginning: To be able to enjoy proper fruits of ones investment it is most advisable to start planning early in life. This not only reduces the financial burden during the work years but also helps plan for a very comfortable retired life.
2) Plan the Retirement: One must always plan for how much is the total amount individual would need for his family in order to maintain a certain lifestyle even after retirement keeping the increase in inflation over the years in mind.
Important Points for NRIs:
1) The first thing which needs to be calculated is the time span available for accumulate the total amount estimated as retirement fund.
2) In case of expenses which can be forecasted way before also be included into the retirement budget fund.
3) The NRIs would be needed to study the Indian market regularly in order to stay up to date with the market rates and inflation graph.
The NRIs have many options for investing in order to provide for ones retired life one of which is the insurance plans.
The insurers in order to in cash on the growing sentiments of the NRIs have designed a variety of products which provide security and returns which suit the retirement needs of the NRIs.
At present a few insurance companies have come up with Retirement Plans specially designed for NRIs. Some of the insurers are:
1) LIC
2) ICICI
3) Kotak Mahindra
4) Max Bupa Life insurance
They also offer comprehensive health plans designed especially for retired life. The NRIs have a choice of plan to be selected from depending on the country of residence, age and other relevant details.
There are certain trivial points which each NRI must know while applying for a Retirement Plan.
1) Presence while buying the policy: It is not necessary for the NRI client to be physically present at the time of buying the policy. But, in cases which involve the medical examinations if the client is not present in India, he would be required to undergo the medical tests at his own cost where ever he/she resides.
2) Payment Mode: The NRIs/PIOs can pay through the online mode by either using their NRO bank account, NRE/FCNR bank account or remittance in foreign currency.
3) Premiums: The premiums charged do not differ from that charged for Indian nationals. The premium calculation is directly linked to the risk factor involved and thus higher the risk higher would be the premium rates.
Other than the above mentioned points, the nature of policy detailing remains same for both Indian nationals and NRIs. The Retirement Plans are meant for lading a decent retired life and hence should be planned and managed accordingly.
Most of the Indians living abroad in many parts of the world to make a living aim and wish to return to India at some stage in their life if not during the early age definitely once they near retirement. Hence, these people would need to plan their retirement in India accordingly.
Since, during the active work life these NRIs largely remain unaware of the financial market and options in the Indian market it is difficult for these people to plan their retirement well.
This increasing wave of NRIs wanting to invest in the Indian market has given the insurers a platform to design and capitalize on the huge potential of tapping the NRIs or the Persons of Indian Origin also known as the PIOs.
How should one go about Planning for Retirement?
1) Early Beginning: To be able to enjoy proper fruits of ones investment it is most advisable to start planning early in life. This not only reduces the financial burden during the work years but also helps plan for a very comfortable retired life.
2) Plan the Retirement: One must always plan for how much is the total amount individual would need for his family in order to maintain a certain lifestyle even after retirement keeping the increase in inflation over the years in mind.
Important Points for NRIs:
1) The first thing which needs to be calculated is the time span available for accumulate the total amount estimated as retirement fund.
2) In case of expenses which can be forecasted way before also be included into the retirement budget fund.
3) The NRIs would be needed to study the Indian market regularly in order to stay up to date with the market rates and inflation graph.
The NRIs have many options for investing in order to provide for ones retired life one of which is the insurance plans.
The insurers in order to in cash on the growing sentiments of the NRIs have designed a variety of products which provide security and returns which suit the retirement needs of the NRIs.
At present a few insurance companies have come up with Retirement Plans specially designed for NRIs. Some of the insurers are:
1) LIC
2) ICICI
3) Kotak Mahindra
4) Max Bupa Life insurance
They also offer comprehensive health plans designed especially for retired life. The NRIs have a choice of plan to be selected from depending on the country of residence, age and other relevant details.
There are certain trivial points which each NRI must know while applying for a Retirement Plan.
1) Presence while buying the policy: It is not necessary for the NRI client to be physically present at the time of buying the policy. But, in cases which involve the medical examinations if the client is not present in India, he would be required to undergo the medical tests at his own cost where ever he/she resides.
2) Payment Mode: The NRIs/PIOs can pay through the online mode by either using their NRO bank account, NRE/FCNR bank account or remittance in foreign currency.
3) Premiums: The premiums charged do not differ from that charged for Indian nationals. The premium calculation is directly linked to the risk factor involved and thus higher the risk higher would be the premium rates.
Other than the above mentioned points, the nature of policy detailing remains same for both Indian nationals and NRIs. The Retirement Plans are meant for lading a decent retired life and hence should be planned and managed accordingly.
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