Know the Documents Required For Buying Term Insurance

To have a sound financial plan, it is imperative to have a life insurance coverage under your name. But people are not keen towards investing in a life insurance policy as most of them are complicated to understand and expensive.

Hence, if you are looking for a life insurance policy that will secure your family financially after your untimely demise, a term insurance plan is just what you need. So, what is term insurance?

A term insurance plan is the purest form of life insurance product available in the market. Term life insurance is known to offer life-long protection to you and your loved ones, especially in the face of uncertain life events. If you are planning to buy term insurance any time soon, the application process might be quick and hassle-free if you have a prior understanding of the documents needed.

In this section, we will be enlisting the documents you need when buying term insurance plans in India.

Documents to Submit when buying Term Insurance

Here’s a list of documents that you will need when buying term insurance plans in India.

  1. Official Documents for Validity Purpose (Any one of the following)
    • Copy of your passport
    • Copy of your voter’s ID
    • Copy of your job card issued by the National Rural Employment Guarantee Act (NREGA) that is signed by an authority of the State Government
    • Copy of your Aadhaar card
    • Copy of the National Population Register with details of your name, address, and Aadhaar card number
    • Any other documented notified by the Central Government of India
  1. Along with the above mentioned official documents, you also need the following (Any one)
    • Copy of your PAN card
    • Duly filled Form 60
  1. If the official document does not have your updated address, then submit one of the following documents
    • Copy of your utility bill, which is not more than two months old.
    • Copy of your property or municipal tax receipt
    • Pension of family pension payment orders (PPOs) issued to the retired
    • Employees by Government Department or PSUs (if it contains the updated address)
    • Letter of allotment of accommodation from the employer issued by the State Government or Central Government of India, statutory or regulatory individuals, PSUs, commercial banks, financial institute, or listed companies.
  1. Proof of Income – For Salaried individuals (Any one of the following)
    • Bank statement showing salary credit for the past three months
    • Latest two years of Income Tax Returns
    • Copy of Form 16
  1. Proof of Income – For Self Employed Individuals (Any one of the following)
    • Latest two years of Income Tax Returns along with computation of income
    • In case the computation of income is unavailable – Latest three years of Income Tax Returns
    • CA certified audited balance sheet and profit loss account for the past two years
    • Copy of the Form 26AS

Once you have collected all the documents that apply to you, you can proceed to buy the term insurance policy. Here’s how you can buy term insurance in India online. Just follow the steps below –

  1. Visit the insurer’s website and go to the term insurance section.
  2. First, use the term insurance calculator to determine the premiums you will have to pay for your chosen coverage.
  3. Then enter your personal information and details regarding income, age, lifestyle habits, etc. This will help the insurer determine your estimated sum assured.
  4. Once you have chosen the type of term insurance plan, you need and the coverage amount, click on proceed.
  5. Then you can opt for rider benefits as needed. Know that this will increase your premium amount.
  6. Review your policy details and proceed to make the payment.
  7. Once you have paid the premium amount, upload the requested documents.
  8. Upon verification of the documents and the application, the insurer will issue the policy in no time.

In the End

Term insurance is the most affordable life insurance product available in India. However, even though it is affordable, it should be the right kind of insurance plan for you. To evaluate this, you need to consider your current financial situation, your expenses, and your future financial objectives.

Then, you can use the term insurance calculator to determine the premium amount based on the sum assured you opted. Just know that the term insurance coverage you decide to buy should be enough to cover the finances of the family in your absence.

Gene Hanley