My uncle has listed me as a beneficiary for two LIC policies with maturity dates in 2027. I am an Indian born US citizen. I do not have OCI. How can I get the insurance money transferred to my US bank account? Can I get this amount to my US Bank account without going through the long process of opening NRE or NRO bank accounts?

I can provide my US bank information to my uncle and he can pass it on to LIC. Is this the way to get this done? I will declare this to IRS when filing tax return.

1 Answer 1


When a life insurance policy matures, the value at maturity is paid to the owner of the policy (your uncle in this instance) if the owner is still alive. You will get the proceeds of the policy only if your uncle passes away before 2027 when the policy matures, and then too only after someone in India submits a certified copy of your uncle's death certificate to LIC (Life Insurance Corporation of India, the insurance company) on your behalf and requests payment be made. Whether LIC will send a Indian-rupee denominated cheque (check for US readers) to you in the US is an open question (my guess is No), and how much your US bank will charge for cashing the cheque is another question. Much easier to go through the "long and arduous process" (actually, it is not that hard or time-consuming) of opening an NRO account in India (you don't need an NRE account) and then transferring the money to the US via normal banking channels (you will need certification from a Chartered Accountant (CA) in India that all relevant Indian taxes have been paid on the money being taken out of India). Life insurance proceeds are not taxable income in the US to the recipient (nor in India, I believe, but your NRO bank will need a CA's certificate to this effect anyway).

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