I would like to know if an NRI can buy term insurance in India and also if anything happens to the person outside India, will he/she get the insured money?
Yes, most life insurance companies offer term insurance cover for NRIs. And term plans cover death outside India provided the policyholder has stated this fact to the insurance company. However, you should check and evaluate carefully, if you should buy insurance cover in India or outside. Here are a few things to consider:
Cost : Will the policy be cheaper in your country of residence?
Tax laws: It is advisable to take into consideration the tax laws in the country of residence before buying a policy in India.
You should check if additional riders are included within the premium of a basic plan or with an additional cost. It is advisable to be present in India at the time of purchase of the policy to avoid additional cost of medical examination and sending it to the insurance company. If you purchase the policy while you are in India, you would not have to bear this cost as it would generally be inbuilt into the cost of your policy.