NRIs (Non-Resident Indians) are Indian citizens who are living abroad. They are allowed to invest in India and enjoy certain tax benefits, but they must comply with the regulations set by the Reserve Bank of India (RBI). The RBI has specific regulations that govern the investments and financial activities of NRIs.
One of the major regulations for NRIs is the Liberalized Remittance Scheme (LRS). Under the LRS, NRIs can remit up to USD 2,50,000 per year for any purpose.
This amount can be used for investment in shares, mutual funds, NRE accounts and other investments. The money can also be used for education and medical expenses. However, the remittance must be made through a bank or authorized dealer registered with the RBI.
The RBI also allows NRIs to open NRE and NRO accounts. An NRE account is a non-resident external rupee account that is denominated in Indian rupees. It can be opened by an NRI and is used to deposit their foreign earnings.
The money in this account can be freely repatriated outside India. An NRO account is a non-resident ordinary rupee account that is denominated in Indian rupees. It can be opened by an NRI and is used to deposit their income earned in India, such as rent and dividend.
The money in this account can be repatriated outside India, but there are certain restrictions on the amount that can be transferred.
In addition, the RBI has set up the Foreign Exchange Management Act (FEMA), which regulates all foreign exchange transactions. All foreign exchange transactions must comply with the provisions of FEMA.
The act also sets out regulations for investments made by NRIs in India. For example, NRIs cannot invest in real estate without prior approval from the RBI. They also need to comply with the various regulations on the repatriation of funds.
Finally, NRIs should also be aware of the taxation regulations applicable to them. NRIs are taxed differently than resident Indians, and they must ensure that they are compliant with all applicable tax laws.
Overall, NRIs should familiarise themselves with the regulations set by the RBI and FEMA when investing in India.
They should also be aware of the tax implications of their investments. Understanding these regulations will help NRIs make informed decisions about their investments and ensure compliance with the law.
In this article...
Best LIC Policies for NRIs
Let’s look at which are the best LIC policies for NRIs.
1. LIC Jeevan Akshay VI
LIC Jeevan Akshay VI is a great plan for NRIs because it provides them with the security of a guaranteed income and allows them to save on their taxes. This plan is perfect for NRIs because it is tax-free in India and offers an attractive rate of return.
The plan also has flexible payment options, which makes it even more attractive to NRIs.
It also offers a death benefit in case of the unfortunate demise of the policyholder, which helps to ensure the financial stability of their family.
Furthermore, the plan does not require any medical tests or paperwork, making it easy and convenient for NRIs to purchase and maintain. Overall, LIC Jeevan Akshay VI is a great plan for NRIs and provides them with the security and assurance they need.
2. LIC NRI Wealth Plus
LIC NRI Wealth Plus is a good LIC plan for NRIs because it offers them an opportunity to invest in the Indian market without having to be physically present in India.
It also helps NRIs save on taxes as they can make investments in the form of premium payments or lump sum payments and enjoy tax benefits under Section 80C of the Income Tax Act, 1961.
Additionally, the plan provides a range of investment options including mutual funds, stocks, bonds, and other instruments, allowing NRIs to diversify their portfolio and maximize their returns. Moreover, the plan offers death benefit and maturity benefit, providing NRIs with financial security.
Finally, the plan has a flexible payment option, allowing NRIs to pay premiums in foreign currencies. All these features make LIC NRI Wealth Plus an ideal LIC plan for NRIs.
3. LIC NRI Jeevan Shanti
LIC NRI Jeevan Shanti is a good LIC plan for NRIs because it offers numerous benefits and features. Firstly, it allows NRIs to earn attractive returns on their investments in Indian currency without having to worry about currency exchange rate fluctuations.
Secondly, it provides flexible premiums, which can be paid either annually or as a lump sum.
Thirdly, it provides guaranteed maturity benefits, which ensure that the invested amount will be returned with an additional bonus at the end of the policy term.
Furthermore, it also offers death benefits in case of the unfortunate demise of the policyholder, thus providing financial security to their family members.
Lastly, it offers tax benefits under section 80C of the Income Tax Act, 1961, which helps reduce the overall tax burden. All these features make LIC NRI Jeevan Shanti a great investment option for NRIs looking to invest in India.
4. LIC NRI Bhagya Plus
LIC NRI Bhagya Plus is a great LIC plan for NRIs. It offers a range of features that make it ideal for individuals who are non-resident Indians. The most important feature of this plan is its tax benefits.
All premiums paid in this plan are eligible for tax deductions under Section 80C of the Income Tax Act. This makes it a very attractive investment option for NRIs looking to save on taxes.
Another major benefit of this plan is its life cover. LIC NRI Bhagya Plus provides a death benefit of up to 10 times the annualized premium paid in case of death of the policyholder during the term of the policy. This ensures that the family of the policyholder is financially secure in case of any eventuality.
In addition, this plan also offers an optional Accidental Death Benefit rider that provides additional coverage in case of accidental death. The rider also pays out an additional sum assured if the policyholder is permanently disabled due to an accident.
The plan also offers flexibility with regards to premium payments. It allows the policyholder to choose from various payment options such as monthly, quarterly, half-yearly and yearly. This makes it easier for NRIs to manage their premium payments without any hassles.
Overall, LIC NRI Bhagya Plus is an excellent LIC plan for NRIs. It offers a range of benefits that make it an attractive investment option for NRIs looking to save on taxes, secure their families’ future and have greater control over their premium payments.
5. LIC New Jeevan Anand
LIC New Jeevan Anand is a great plan for NRIs as it offers several attractive features which cater to their specific needs.
It offers a combination of protection and savings, giving NRIs the assurance that their family will be taken care of even in their absence. This plan also provides an additional income stream through bonuses, and offers tax benefits.
Furthermore, its flexibility allows NRIs to make premium payments while they are abroad, and to make partial withdrawals from the fund if required. All these features make LIC New Jeevan Anand an ideal plan for NRIs.
6. LIC New Jeevan Lakshya
LIC New Jeevan Lakshya is a great plan for NRIs, offering them a secure and tax-efficient way to save money. It is a single premium, non-linked, participating life insurance plan that offers guaranteed maturity benefits as well as death benefits. The plan also provides bonuses, which can be withdrawn in part or full at any time.
One of the main advantages of this plan is its tax benefits. NRIs are eligible for tax exemption under Section 80C of the Income Tax Act. This makes LIC New Jeevan Lakshya an ideal savings option for NRIs looking for a secure and tax-efficient way to save money.
Another advantage of the plan is its flexibility.
NRIs have the option to choose the amount of premium they wish to pay, ranging from a minimum of Rs. 1,00,000 to a maximum of Rs. 10,00,000. Moreover, the policy term can be chosen from a range of 10-20 years, offering NRIs the flexibility to customize their policy according to their needs.
The plan also offers attractive bonuses, which can be withdrawn at any time.
This gives NRIs the freedom to access their money when they need it most. Additionally, the plan offers a range of riders, such as Accidental Death Benefit Rider and Accidental Permanent Total Disability Benefit Rider, providing additional protection to NRIs.
Overall, LIC New Jeevan Lakshya is a great plan for NRIs, offering them a secure and tax-efficient way to save money. It is flexible, offering attractive bonuses and riders, making it an ideal option for NRIs looking for a long-term savings plan.
7. LIC NRI Jeevan Saral
LIC NRI Jeevan Saral is a great LIC plan for NRIs because it offers several benefits, including:
Flexible premium payment options:
The plan allows NRIs to choose the premium payment frequency that suits them best. They can pay annually, semi-annually, quarterly, or monthly.
NRI policyholders can avail of tax deductions up to Rs.1.5 lakhs under Section 80C of the Income Tax Act, 1961.
The policy provides attractive returns on the premiums paid, which can be used for various needs such as retirement planning, education funding, etc.
In the event of death of the policyholder during the term of the policy, the nominee will receive the Sum Assured along with bonus, if any.
NRIs can avail of loan against the policy at attractive terms and conditions.
The policyholder can surrender the policy anytime after three years to get the surrender value.
These features make LIC NRI Jeevan Saral an ideal choice for NRIs looking for an investment plan that offers good returns and financial security.
8. LIC NRI Jeevan Pragati
LIC NRI Jeevan Pragati is a good LIC plan for NRIs because it offers a number of benefits that make it an attractive option for NRI investors.
The plan provides a high death benefit to the nominee of the policyholder, with up to 125% of the sum assured being paid out in case of death. It also provides financial security to the policyholder’s family and the opportunity to save tax in the host country.
The plan also provides a flexible premium payment option, allowing the policyholder to pay premiums in their home country and in the host country.
This makes it easier for NRIs to manage their finances while living abroad. The plan also has a money-back guarantee, providing guaranteed returns even if the policyholder dies before the maturity date.
Finally, LIC NRI Jeevan Pragati offers a range of additional benefits, such as accident and disability cover, waiver of premium on permanent disability, and medical cover. These benefits make the plan even more attractive to NRI investors.
9. LIC NRI Jeevan Nidhi
LIC NRI Jeevan Nidhi is a great LIC plan for NRIs because it offers them the opportunity to invest in an Indian insurance policy while they are living abroad.
This plan allows NRIs to enjoy the same benefits of life insurance as Indian citizens, without having to worry about currency exchange rates or repatriation of funds.
Additionally, the plan has a range of maturity and death benefits, allowing NRIs to protect their loved ones financially in case something happens to them.
The plan also provides the option of a tax-free lump sum payment at maturity, providing additional financial security for NRIs.
Overall, LIC NRI Jeevan Nidhi is an excellent LIC plan for NRIs, as it provides them with the opportunity to invest in an Indian insurance policy without having to worry about repatriation or currency exchange rates.
10. LIC NRI Jeevan Surabhi
LIC NRI Jeevan Surabhi is a good LIC plan for NRIs because it offers flexibility to the policyholder.
It is a whole life plan with guaranteed returns and flexible premium payment options. The plan provides death benefit along with survival benefits, which makes it suitable for long-term investments.
The plan also offers tax benefits to NRIs as the premiums paid are eligible for deduction under Section 80C of the Income Tax Act, 1961. Additionally, the returns earned from the plan are tax-free under Section 10(10D) of the Income Tax Act.
The plan offers liquidity benefits to the policyholder as they can avail loan against the policy, if needed. The plan also has an option to surrender the policy after 5 years and receive the fund value.
Overall, LIC NRI Jeevan Surabhi is a good LIC plan for NRIs as it offers flexibility, guaranteed returns, tax benefits, liquidity benefits and surrender value. This makes it an ideal choice for NRIs looking for a long-term investment option.
It is a great idea for NRIs (Non-Resident Indians) to get a life insurance policy. A life insurance policy provides NRIs with financial security and peace of mind as it ensures that their family will receive a lump sum payment in the event of their death.
Furthermore, these policies also provide benefits such as tax benefits and investment opportunities which can be beneficial for NRIs who are looking to save money for their future.
Additionally, having a life insurance policy gives NRIs the confidence to know that their families are financially secure and taken care of even if they are not around.
In conclusion, getting a life insurance policy is a good idea for NRIs as it provides them with financial security and peace of mind. It also offers tax benefits and investment opportunities which can be beneficial for their long-term financial plans.