Demystifying Health Insurance for NRIs in India: Considerations, Benefits, and Tips

When performing financial planning for NRIs, there is still another often asked question: “I Am an NRI. Do I Need Health Insurance in India?”

A significant financial choice is to get the best health insurance available in India. You must take into account things like your age, health, the insurance coverage of your family, etc. Purchasing health insurance for NRIs might be challenging.

When they are young and healthy, many individuals choose not to purchase it, and when they are old and ill, insurance companies refuse to pay for it.

Can NRI buy Health Insurance in India?

You are permitted to get a health insurance plan in India as an NRI. Insurance firms can collect premiums in various modes, from cash to credit cards, but NRIs will require ID and address proof.

Do you need health insurance in India?

Here are some things you should consider before making a choice.

1) Duration of Stay and Family Status

You will need to consider the following-

1. How long are you planning to stay abroad?

2. What is your estimated return time?

3. Where does your family live?

4. Will your family be relocating to India/abroad in the near future?

5. What is the anticipated return date for you and your family to India?

It is a no-brainer if you are already abroad or if you are heading abroad and you anticipate returning to India in two to three. You need to buy health insurance or NRI life insurance in India.

You can purchase family floater insurance policies in India if you have financially dependent family members or elderly members who may find it difficult to obtain health insurance.

If you and your family will reside abroad for more than four to five years, you should avoid purchasing health insurance in India. Therefore, it is preferable to purchase it in the country of domicile.

2) Geographic Limitations

Many insurance products only offer coverage for areas within India. Check the specifics of your insurance. Consider changing your coverage if it doesn’t cover medical emergencies that occur abroad. You could choose to switch to an insurance company that also offers coverage overseas.

You should also take into account the fact that even if your policy does not cover you outside of India, you will be fine if you have adequate insurance overseas, whether it is provided by your work or that you have acquired.

3) Benefits of Taxation for NRI Health Insurance

A taxpayer (NRIs included) receives a tax deduction on the payment of health insurance premiums under Section 80D of the Income Tax Act. The deduction is as follows:

1. ₹25,000 for a policy that covers the policyholder, their spouse, and dependent children

2. ₹25,000 for policies that cover parents who are under 60 years of age

3. ₹50,000 for policies for parents who are senior citizen

4. ₹50,000 for policies if the principal proposer is 60 years of age or older.

It will be a good idea to acquire health insurance in India if you earn a living there and intend to return. It could be wiser to purchase a health insurance policy in India if you have financial or insurance dependents there so that your medical costs are covered and your tax burden is minimised.

4) Travel to India frequently

It can make sense to get insurance coverage in India if you often go to India for work or business, are a pilot or a member of the Merchant Navy, or if you have other special circumstances.

In an emergency, it could be helpful. Furthermore, as compared to many other nations, India’s medical facilities and level of care are better. In India, medical care is also more affordable than in many other nations. Health insurance for NRIs in India makes sense from both a health and financial standpoint.

Things NRIs should consider while buying Health Insurance in India

1. When having to provide coverage to NRIs, insurers take additional security measures. Some of them have strict claims procedures.

2. Examine the geographic coverage and its scope in terms of illness and accidents before purchasing an insurance policy.

3. According to FEMA regulations, only the amount of the total premium paid in foreign currency may be repatriated for claims.

When deciding whether to obtain insurance, NRIs should take into account the policy’s coverage, tax regulations, their residency, and the location of their intended medical care.