Importance of life insurance for NRIs

Written by: Tarun Chugh

Importance of life insurance for NRIs
Indians have spread to virtually every corner of the globe and have made their mark in the chosen line of business or profession. As an Indian living abroad, it definitely makes good financial sense to connect with the roots of your lineage and make wise investments back at home, especially when the country is in a developing phase.

Whether you are pursuing a dream job abroad and at some point wish to settle back in India post retirement, or if you have ageing parents living on their own in India and are dependent on you for financial support, it is prudent to take calibrated financial decisions, especially at a time when uncertain economic conditions are prevailing in the more developed countries. It is also imperative to provide for long term security and achieve financial goals for you and your dependents. India is one of the fastest growing economies in the world and various economic estimates and research reports peg India's growth around 6% - 7% annually.

This is significantly higher as compared to other economies in the developed world where there is either nominal or no growth. This makes India an attractive investment destination for NRI's. Also, given the prevailing interest rate regime in India, an NRI will earn a lot more on his bank deposits in India as compared to his country of residence. This also makes a compelling argument for the NRI to park his money in bank deposits in India.

An NRI has various options to choose from when he / she is structuring his financial plan. There is no one-size-fits-all investment strategy that can be prescribed for an NRI as such and an ideal financial plan should have an optimum mix of various asset classes. However, we would like to lay stress on the role of insurance as an asset class for an NRI in meeting his and his family's financial goals. Life insurance products can help to address an array of financial needs and goals of an NRI as they can be customized for specific purposes.

Read more about: insurance, nri
Story first published: Monday, October 8, 2012, 10:29 [IST]
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