When an individual, planning to go abroad, purchases an insurance plan, the only concern that may stop them is the policy’s validity outside India. But worry not! Because every insurance plan is valid worldwide. It is still advised to share this with your insurer and get worldwide coverage on your life insurance policy. So, let’s look at some aspects that you should be aware of the validity of your insurance plan.
Some Points That You Should Note:
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Insurance Plan Remains in Force during Travel
If you were to pass away while traveling, your beneficiary is eligible to claim the death benefit. But the sum assured will be payable only in India. Thus, your family will have to submit the death certificate, claim form, and other such documents to the insurer in India. After this, the sum assured will be paid out in Indian currency.
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Joint Insurance Plan Vs. Individual Cover
Individual insurance plans can be customized according to individual requirements and needs, which cannot be done for joint cover. While the prices are low for joint, after the first payout, the other spouse is left with no protection. So, if your spouse requires a cover to secure your children or family, another policy has to be bought. Thus, the needs of an insurance plan vary from couple to couple. After considering the pros and cons, you and your partner can choose which plan suits you best. If you want to save up on money right now, then a joint plan is a lucrative option.
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Death & Maturity Proceedings
The death and maturity benefit can be availed as tax-free received from an insurance plan. Both can be claimed for income tax deductions under Section 10(10D) of the Income Tax Act, 1961. This gives you a huge advantage as it allows long-term savings with tax liability.
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Insurance Riders
Riders are additional perks that can be combined with your life insurance policy to increase your coverage. These riders in insurance protect you from unfortunate incidences and give a lump sum or regular payouts to secure you. Situations like accidental death, critical illness, loss of income, etc. can be covered under the add-ons which are not included in the base plan.
Now that you are aware of these points, you can easily buy a life insurance policy and be worry-free about your family’s security. But it is advised to compare plans and premium quotes before you choose the final insurance plan so that you get the best of your money’s worth.
