Money Insurance What to skip
📋 NRI Insurance · Step 5 of 5

What to skip — ULIPs, endowment, "money-back", agent-pushed riders

The contrarian read: most agents push these because the commission is high. They're terrible products. Plus the niche cases (property in India, students abroad) where you might actually want extra cover.

AK
Amish says
In India, insurance and investment should never be in the same product. ULIPs and endowment plans bundle them and do both badly. Buy term life + invest the difference in mutual funds — every time.
Property

Property in India

₹3-8K/year for ₹50L-1Cr structure + ₹5L contents. Cheap relative to the asset, but most NRIs skip it — fire, flood, theft on a vacant property is the actual risk. Vacant + rented properties need explicit cover beyond standard.

Students

Studying abroad

Already covered by the university plan? Most US/UK universities require insurance and auto-enrol students in their own plan ($2,000–$4,000/year). That covers care on campus — but not when you fly home to visit parents between semesters. The moment you land in India, the university plan stops paying.

Indian student travel insurance covers both — medical care while studying abroad and during India trips — plus the things university plans rarely include: study interruption (forced to drop out due to illness), sponsor protection (fees keep getting paid if your parent passes), baggage and flight delays. ₹15–50K total for 1–5 years of cover. Buy in India before flying out — options narrow once you're abroad.

Travel

Traveling to India

Already covered by your US/UK employer plan? It's not enough. Most employer plans only cover emergency care abroad — and only after you pay the Indian hospital upfront, then file for reimbursement (paperwork hell). Routine visits, follow-ups, pre-existing flare-ups, and medical evacuation typically aren't covered. Some Kaiser HMO and ACA marketplace plans exclude India entirely.

Indian travel insurance closes the gap for the cost of a couple of cocktails — cashless treatment at network hospitals (no upfront pay), medical evacuation from remote areas, trip cancellation, baggage, flight delays. Single-trip ₹500-2,000; annual multi-trip ₹3-5K wins at 2+ visits a year.

Property

Property in India

₹3-8K/year for ₹50L-1Cr structure + ₹5L contents. Cheap relative to the asset, but most NRIs skip it — fire, flood, theft on a vacant property is the actual risk. Vacant + rented properties need explicit cover beyond standard.

Students

Studying abroad

Already covered by the university plan? Most US/UK universities require insurance and auto-enrol students in their own plan ($2,000–$4,000/year). That covers care on campus — but not when you fly home to visit parents between semesters. The moment you land in India, the university plan stops paying.

Indian student travel insurance covers both — medical care while studying abroad and during India trips — plus the things university plans rarely include: study interruption (forced to drop out due to illness), sponsor protection (fees keep getting paid if your parent passes), baggage and flight delays. ₹15–50K total for 1–5 years of cover. Buy in India before flying out — options narrow once you're abroad.