Hi Basu ji,
I recently became a PR of another country. I do not have my NRI accounts created yet. I still have my Indian Savings Account which I use for transactions in India. I want to buy term insurance next month. Is it better to start a NRI account and then buy term insurance? Or can I continue to buy term insurance with my current savings account details and update the NRI status at a later point of time? I want the claim settlement process to be smooth. I (or any insured person) will not be there during the settlement process and the family members should not face problems. Please share your thoughts on this topic.
Holding savings account after your residential status change is not allowed. Hence, first open NRE or NRO account. Once it is done, then go for the term life insurance.
Even hiding your residential status may harm you in future. Hence, better to disclose all facts properly if you don’t want any claim rejection in your absence.