What Are The Benefits For NRIs Buying Health Insurance In India?

Posted on: Jan 11, 2024 | 3 mins | Written by: HDFC ERGO Team

What Are The Benefits For NRIs Buying Health Insurance In India?

Non-resident Indian, or NRI, refers to an Indian citizen who lives outside India for 182 days in a financial year but maintains strong connections with the country and visits it often. According to official estimates, there are around 30 million NRIs spread across the world, representing a diverse community that transcends borders and is united by culture and ethnicity with people back home. These individuals have contributed significantly to their adopted countries while staying connected to their Indian roots. Although their lifestyle, geography, and other factors may have kept them away from their homeland, their basic needs remain the same. One of these needs is to stay financially secure during medical emergencies by having a comprehensive health insurance plan that protects them from financial burdens.

Should NRIs buy Health Insurance In India?

Many NRIs face the question of whether they should buy a health insurance policy in India. While it is necessary to have a policy in the country of residence, the dilemma arises whether they should also have a policy in India. The answer to this question depends on several factors:

1. Length of stay in the home country:

If one has to stay in India for a prolonged period, say 2 months or more, having a health insurance policy in India is wise.

2. Frequency of visits to India:

If you intend to stay abroad for 3 or 4 years without visiting India for a long break, buying a health insurance policy in India is a much wiser decision to stay financially secure.

3. Family staying back in India:

If your family stays in India while you stay abroad, investing in comprehensive family health insurance is advisable. This will help you cover the expenses of a family member during a planned hospitalization or a medical emergency.

Advantages For NRIs Having Health Insurance In India

If you are an NRI planning to get health insurance in India, you should know the benefits it can offer. Here are a few advantages you can avail of:

1. Coverage for Medical Expenses:

Health insurance can protect you against the high costs of medical treatments, hospitalization, surgeries, and other healthcare-related expenses. It can be especially valuable in the event of unexpected illnesses or emergencies when you are visiting India. If you get family or parent health insurance, it can ensure financial security for your loved ones while you are away from home.

2. Access to Quality Healthcare:

With health insurance, you can access a network of hospitals and healthcare providers in India. This ensures that you receive quality medical care when visiting the country, and the insurance can facilitate cashless hospitalization in network hospitals. HDFC ERGO has a network of 12000+ cashless hospitals where you can easily get treatment.

3. Coverage for Pre-existing Conditions:

Some health insurance policies in India offer coverage for pre-existing medical conditions after a waiting period. This can benefit NRIs with existing health concerns, as they can receive coverage for those conditions if they plan to get treatment in India after the waiting period is over.

4. Emergency Medical Evacuation:

Some health insurance policies may offer coverage for emergency medical evacuation or repatriation. This is particularly important for non-resident Indians (NRIs) who may require evacuation to India for specialized medical treatment in case of severe medical conditions or other factors, such as an environment of care and family support.

5. Family Coverage:

NRIs can extend their health insurance coverage to their family members in India. This ensures that their loved ones have access to healthcare facilities and financial protection in case of medical emergencies. Especially if someone is leaving their family behind, having a family health insurance policy in India can be very useful.

6. Tax Benefits:

Premiums paid for health insurance are eligible for tax deductions under Section 80D of the Income Tax Act in India. NRIs can avail of these tax benefits, contributing to potential savings on their taxable income. NRIs can avail income tax rebates and benefits by purchasing health insurance and paying premiums. The following benefits can be claimed:

- By purchasing health insurance coverage for the self (NRI) and family members, one can save up to ₹25,000 on the premiums paid in a year.

- The same amount of savings can be availed if insurance is purchased by the parents (up to the age of 60) of the NRI.

- In the case of parents of the NRI aged above 60 years, one can claim up to ₹75,000 on the premiums that are paid for the insurance policy.

7. Peace Of Mind:

Having health insurance provides NRIs with peace of mind as they have financial protection against unforeseen medical expenses. This peace of mind can be incredibly reassuring when living abroad, knowing that healthcare needs in India are covered.

8. Customised Plans:

NRIs can choose health insurance plans that suit their needs as insurance providers offer a variety of plans with different coverage options. This allows NRIs to select plans that align with their health requirements and preferences.

9. Facilitates Regular Health Check-ups:

Some health insurance plans include coverage for preventive healthcare services and regular health check-ups. This encourages NRIs to prioritize their health and well-being through routine screenings and preventive measures. NRIs can avail of these facilities while visiting India or even plan their visits accordingly to avail of this benefit.

10. Support During Repatriation:

In unfortunate situations where NRIs need to return to India due to health concerns, having health insurance coverage can offer financial support for medical treatments and related expenses.

Take Home Message:

It's important for NRIs to review the terms and conditions of health insurance policies carefully, understand the coverage offered, and select a plan that best suits their needs and circumstances. While there are various benefits an NRI can have with a health insurance plan in India, depending on need, income, and other parameters, one should select a premium that offers adequate coverage and gives requisite protection during times of need.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

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