Although the exact list of documents may vary depending on the insurer and the individual applying, it may help to get a general idea. Here’s an extensive list for you to go through.
Documents Required for Term Insurance
For purchasing a term insurance plan, keeping the following documents ready for you may ensure a quick and hassle-free purchase of the plan -
1. Proof of Identity Document (ID) and Address
For the Know Your Customer (KYC) process, you may need to submit a valid address and ID proof. The documents verifying the same usually include-
- Aadhaar Card
- Passport
- Driving License
- Voters ID
- Job card issued by NREGA duly signed by an officer of the State Government,
- The letter issued by the National Population Register containing details of name, address
2. Age Proof
Usually, individuals between the age of 18 years to 65 years may be eligible to purchase a term insurance plan. Hence, one of the documents required for term insurance can be the age proof. You may use your PAN Card or Aadhaar Card as proof of the same. If you are planning to buy a term plan online, you may scan or click a photo of both the front and back of the Aadhar Card. If you are submitting your PAN card, only the front of the card may be acceptable.
3. Income Proof
Your income may reflect the amount of life cover you can get. Some documents needed for term insurance may be included to validate your income. The acceptable income-proof documents may include the following-
- Salary slips for the last three months
- Income Tax Returns (ITRs) of the last three years
- Bank statement reflecting your salary/income for the past six months
- Latest Form 16
- Profit and loss account and balance sheet of last three assessment years
- Form 26 AS of the last financial year
- Agricultural income certificate not older than a year
Sometimes, one of these income proofs may not suffice, and you may have to submit additional income proof to the life insurance provider.
4. Medical reports
When buying term insurance, you may be required to fill in details about your pre-existing health conditions. Medical tests may be needed by the insurer to better understand your situation while providing you with a life cover. Once you have submitted your medical reports, your life insurance provider may quote you the premium for your term plan.
5. Other Mandatory Documents
- PAN Card or Form 60
- Recent passport size Photograph
Why Is It Important to Submit Documents for Term Insurance?
The documents mentioned above can serve as evidence of the information you have provided in the application form. Here is the significance of each of them-
● Identity proof
The documents submitted as identity proof may reflect your age and gender, both of which may help determine the premium of a life insurance plan.
● Income proof
The income details you provide may be a way for insurers to confirm that your coverage needs are in line with your capacity to continue with the plan for the decided tenure.
They may do so by considering your capability to meet the premium requirements of the life insurance plan basis your current income.
● Address proof
Providing proof of where you reside may help ensure that you are a citizen of the country. Also, it may help insurance companies in factoring risks, if any; associated with your location or environment.
● Medical proof
The insurance provider may need to evaluate the insured’s health to determine any risks involved concerning their life span. Depending on the individual being insured and the policy chosen, the medical data may play a role in the approval or rejection of the policy proposal.
The documents required for term insurance and the information required by your life insurance company should be submitted with utmost care. Submitting proper documents may ensure a stress-free purchase, and in the future, a stress-free claim settlement process. If you have doubts regarding any of the documents mentioned above, you may get in touch with an insurer’s customer support team or reach out to their nearest branch.
General References-
https://www.deccanherald.com/brandspot/documents-required-to-buy-term-insurance-962990.html
https://www.bajajallianzlife.com/life-insurance-guide/term/documents-required-for-term-insurance-claims.html
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