On most occasions, a visit to India is one of the most exciting events in an NRI’s calendar. And like all NRIs, I was also excited as I was finally visiting home for Christmas. I have been working in New York on a project for the last 2 years. After months of planning, shopping for family members, and numerous days spent in packing, I was all set for my Indian vacation. After a long flight, here I was in my country, at my home, eating that delicious mom-made dinner and catching up on all the fun that I missed.

After hours of conversations, everyone gradually fell asleep. Though I was tired, I couldn’t sleep as I was jet-lagged. So, I started browsing the internet. After a couple of funny videos, I came across an article on investment opportunities in India for NRIs and found it really interesting. I thought that since I was in India, it would be a great idea to make some investments that would help me plan my future. I decided to discuss with my friend Sharad, who is a CA, about the long term investment opportunities in India.  

I walked into Sharad’s office the next afternoon. After catching up on other things, I told Sharad about the article I read and how I was open to exploring investment opportunities in India. Sharad explained “As you must be aware, India is the fastest growing major economy in the world1. There couldn’t have been a better time for making investments in India. Well, there are numerous options for you to invest. But I think you should select an option that would help you get better returns and let your money grow. In fact, if you invest in Life Insurance, you get the opportunity to create wealth along with getting a life cover.” I was curious to know more about this option and so I asked Sharad to tell me more.

Sharad said, “If you invest in unit linked insurance plans (ULIPs)2 a part of your money gets invested in equity and debt which allows your money to potentially grow over a long term. It also gives you life cover. The other type of Life Insurance is term insurance. If you opt for term insurance, you get protection for yourself at a very low cost. You also get the flexibility to increase your life cover3 at key life stages. Not only that, Life Insurance also gives you tax benefits.”

I exclaimed, “You mean despite being an NRI, I can enjoy tax benefits?” Sharad explained “Absolutely! On your taxable income earned in India, you are eligible for tax benefits on the premiums you pay and also on the money you receive from your life insurance policies. Additionally, in case of term insurance, you can get tax benefits u/s 80C4. You can also claim deductions u/s 80(C)4 on Indian taxable income towards premium paid under a ULIP investment as well.

I told Sharad “The options are all quite interesting. But what if something happens to me in America? Is an Indian policy still valid?” Sharad replied, “In case of an unfortunate event, all Indian life insurance policies will be valid irrespective of the country in which the unfortunate event occurred.”

After the discussion, I realized that talking to Sharad was a good idea as now I am aware about different life insurance policies and their benefits. The discussion helped me make an informed decision and allowed me to choose the right option for a brighter future.

To calculate your term insurance premium, you can use our Online Term Insurance Plan Premium Calculator .


1http://www.business-standard.com/article/economy-policy/at-7-6-in-fy16-india-is-now-the-fastest-growing-economy-116053101080_1.html (June 1, 2016)


2Unlike traditional products, Unit linked insurance products are subject to market risk, which affect the Net Asset Values & the customer shall be responsible for his/her decision. The names of the Company, Product names or fund options do not indicate their quality or future guidance on returns. Funds do not offer guaranteed or assured returns.

3Available only under Life option of ICICI Pru iProtect Smart

4Tax benefits under the policy are subject to conditions under Section 80C, 80D, 10(10D) and other provisions of the Income Tax Act, 1961. Service tax and applicable cesses will be charged extra, as per prevailing rates. Tax laws are subject to amendments from time to time. Please consult your tax advisor for details before acting on above.

ADVT – OTH/II/1153/2016-17

ICICI Pru iProtect Smart (UIN: 105N151V01)

ICICI Pru Wealth Builder II (UIN: 105L139V01)

About The Author

ICICI Prudential Life Insurance Company Limited is one of the leading life insurance companies in India. We provide insurance plans & policies that include a range of products like term insurance, ULIPs, tax saving plans and pension & retirement plans.

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