Green card the much enticing residential status in countries like USA, permanent residency status in canada, blue card status in Europe to name a few offers plethora of benefits. In addition it closes plenty of investment avenues to Indians who can otherwise avail it as an NRI (say in temporary work visa rather than permanent residential status)
So, LIC policy an enticing insurance investment run by government of India is not open to green card holders. So, if you are an NRI planning to settle in foreign land it is advisable not to go for LIC policies
Why should I not go with LIC policy?
Most of these policies are life based (i.e) will give full benefits in case of unexpected event like death or say after its maturity tenure called policy term. Most of it is well above 5 years.
In case of a usa immigrant say for example the person can choose to maintain H1B status for 6 years maximum. In current scenario people file their GC on first or second month of USA arrival to get their GC 5 years down the line. In case of canada it is just 2+years to obtain a permanent residency. Considering these factors, it is advisable not to go for LIC policies
I already hold a LIC policy. What should I do?
If that be the case calculate your surrender value and this is the amount you can expect after getting GC/permanent resident status
Surrender value = (number of term paid/policy term)*Sum assured + (sum assured/1000)*bonus
For calculating bonus, refer to chart released by LIC each year
Where do I get details on LIC bonus chart?
LIC bonus details are accessible when we log into our LIC profile with online registered user account. This gets deposited once the bonus is declared on an annual basis
Is bonus taxable at India?
Though many auditor say it is taxable if surrendered before the term it is advisable to contact your auditor in India to get details on income tax policy
Is there a reliable link on LIC website that talks more on this?
Yes. There was a link in lic website talking more on this
Please refer to the following question :
Are Green Card holders and Foreign Nationals of Indian Origin treated as NRIs?
No, Green Card holders and Foreign Nationals of Indian origin are not treated as NRIs for the purpose of allowing Insurance. They are treated as Foreigners and the underwriting rules as those prescribed for foreigners will be applicable. As of date this link is not available. IF you have any questions contact LIC helpline
Got GC/Citizenship Invested in India LIC - Alert Read on :
This is GC season. Many were uncertain about their future and had their investment made in India in safe instruments like LIC policies. LIC proved to be an excellent tax saver tool, hefty bonus returns and was an enticing option around 2005-2009.
If you've already invested in LIC or planning to invest in LIC policy it would be right time to reconsider your investment. As per guidelines from LIC india investment in LIC is not open to green card holders, US Citizens.
Norms that provide full details can be obtained from LIC website
So, LIC policy an enticing insurance investment run by government of India is not open to green card holders. So, if you are an NRI planning to settle in foreign land it is advisable not to go for LIC policies
Why should I not go with LIC policy?
Most of these policies are life based (i.e) will give full benefits in case of unexpected event like death or say after its maturity tenure called policy term. Most of it is well above 5 years.
In case of a usa immigrant say for example the person can choose to maintain H1B status for 6 years maximum. In current scenario people file their GC on first or second month of USA arrival to get their GC 5 years down the line. In case of canada it is just 2+years to obtain a permanent residency. Considering these factors, it is advisable not to go for LIC policies
I already hold a LIC policy. What should I do?
If that be the case calculate your surrender value and this is the amount you can expect after getting GC/permanent resident status
Surrender value = (number of term paid/policy term)*Sum assured + (sum assured/1000)*bonus
For calculating bonus, refer to chart released by LIC each year
Where do I get details on LIC bonus chart?
LIC bonus details are accessible when we log into our LIC profile with online registered user account. This gets deposited once the bonus is declared on an annual basis
Is bonus taxable at India?
Though many auditor say it is taxable if surrendered before the term it is advisable to contact your auditor in India to get details on income tax policy
Is there a reliable link on LIC website that talks more on this?
Yes. There was a link in lic website talking more on this
Please refer to the following question :
Are Green Card holders and Foreign Nationals of Indian Origin treated as NRIs?
No, Green Card holders and Foreign Nationals of Indian origin are not treated as NRIs for the purpose of allowing Insurance. They are treated as Foreigners and the underwriting rules as those prescribed for foreigners will be applicable. As of date this link is not available. IF you have any questions contact LIC helpline
Got GC/Citizenship Invested in India LIC - Alert Read on :
This is GC season. Many were uncertain about their future and had their investment made in India in safe instruments like LIC policies. LIC proved to be an excellent tax saver tool, hefty bonus returns and was an enticing option around 2005-2009.
If you've already invested in LIC or planning to invest in LIC policy it would be right time to reconsider your investment. As per guidelines from LIC india investment in LIC is not open to green card holders, US Citizens.
Norms that provide full details can be obtained from LIC website
