Inquiry Regarding: Non-Resident Indian Health Insurance
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August 2, 2025
Rajat Sen, an NRI living in the US, is seeking a health insurance plan that adequately covers his family in India. With his parents being senior citizens and having pre-existing conditions such as hypertension, diabetes, or heart ailments, it's essential to choose a plan that caters to their unique needs.
Family floater plans can be an ideal solution for Rajat Sen and his spouse. These plans cover all insured members under a single sum insured, offering financial efficiency and convenience. Compared to buying separate policies for each member, family floater plans can lead to lower combined premiums[1][2][3][4].
However, it's crucial to consider the specific healthcare requirements of each family member. If one family member has significant or chronic health issues, an individual policy might be more suitable to prevent one member's medical claims from depleting the shared floater sum insured[1][2]. In Rajat Sen's case, it would be advisable to opt for separate senior citizen-specific health insurance policies for his parents due to their unique medical needs and higher likelihood of needing medical attention[5].
The good news is that family floater plans offer tax benefits for Non-Resident Indians (NRIs) under Section 80D of the Income Tax Act. For family floater policies, the entire premium paid is eligible for deduction, simplifying tax claims. You can claim up to ₹25,000 per annum for premiums paid for family members below 60 years and up to ₹50,000 if senior citizens are covered[1][3]. If Rajat Sen takes a separate family floater policy for his parents (senior citizens), he can claim an additional deduction, effectively increasing the total tax benefit[1][3].
To make the most of his NRI status, Rajat Sen can also claim a GST refund when paying for the policy through an NRE (Non-Resident External) account, resulting in additional savings of 18 per cent[6].
One important consideration for NRIs is the quality and timeliness of medical care. New-age health insurance plans offer additional services such as 24/7 emergency support, hospitalization guidance, and on-ground claims support within 30 minutes, addressing the concerns of NRIs regarding high-quality medical care[6].
Lastly, Rajat Sen should ensure that the family-floater plan he chooses offers global coverage for both himself and his spouse under the NRI Care programme[5]. This way, he can plan health procedures in India that could be unaffordable in the US through this family-floater plan[7]. By including himself in the plan, Rajat Sen ensures his coverage on his visits to India with minimal increase in the premium[7].
In summary, Rajat Sen should consider buying a family-floater health insurance plan in India with a sum insured of around ₹1 crore. He should go for the NRI Care programme in the family-floater plan and opt for separate senior citizen-specific health insurance policies for his parents to manage costs, coverage, and tax benefits effectively. This approach offers the financial efficiency and convenience of a floater for younger members while providing adequate coverage for parents without high premiums impacting the entire family floater plan.
References:
[1] telanganatoday.com [2] policybazaar.com [3] nivabupa.com [4] partners.assetplus.in [5] article written by Joint Group CEO, PB Fintech. [6] nrilegal.com [7] moneycontrol.com
- To cater to his family's unique health needs, Rajat Sen is considering a family floater plan that covers all insured members under one sum insured, offering financial efficiency and convenience.
- Though family floater plans can lead to lower combined premiums, it's important to consider the specific healthcare requirements of each family member, as individual policies might be more suitable for those with significant health issues.
- Rajat Sen, considering his parents' unique medical needs and higher likelihood of needing medical attention, may opt for separate senior citizen-specific health insurance policies to prevent their medical claims from depleting the shared floater sum insured.
- Family floater plans also offer tax benefits for Non-Resident Indians (NRIs) under Section 80D of the Income Tax Act, allowing Rajat Sen to claim up to ₹50,000 if senior citizens like his parents are covered in the policy.
- To accumulate additional savings as an NRI, Rajat Sen can claim a GST refund when paying for the policy through an NRE account, resulting in an 18 per cent savings.
- Ensuring that the family-floater plan offers global coverage for both Rajat Sen and his spouse under the NRI Care programme is crucial for accessing high-quality medical care in India and making health procedures affordable that could be unaffordable in the US.
