What Are the Documents Required for a Term Plan?

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-

   1. Aadhaar Card
   2. Passport
   3. Driving License
   4. Voters ID
   5. Job card issued by NREGA duly signed by an officer of the State Government,
   6. 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

   When applying for a term insurance plan, submitting documents required for term insurance may include providing evidence of income. Depending on your profession or source of income, there are different types of proof of income. These documents give insurers a sense of your ability to pay the premiums and help them choose an appropriate coverage amount.

   For Salaried Individuals

   These documents can confirm your regular income and stability.

   1. Recent salary slips.
   2. Bank statements to show salary deposits.
   3. Form 16.
   4. Income Tax Returns (ITRs) for the last 3 years.

   For Self-Employed Professionals

   Proof of income for term insurance can include the following if you are a freelancer or own your own business:

   1. Profit and loss account of the business for the last 3 years.
   2. Balance sheet for the last 3 years.
   3. Income Tax Returns (ITRs) for the last 3 years.
   4. Bank statements to show business dealings.
   5. GST returns (if applicable).

   For NRIs

   Non-resident Indians may need:

   1. Regular deposit bank statements.
   2. Foreign employment income statements.
   3. Tax documents from the residence country.

   Do note that the specific documents required for a term plan may differ from insurer to insurer.

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

   1. PAN Card or Form 60
   2. Recent passport size Photograph

 

Why are Documents Required to Buy Term Insurance?

When buying a term insurance plan, submitting the documents required for term insurance is essential. These documents serve multiple purposes:

1. Help confirm your resident status and personal details.
2. Provides real-time information about your health for accurate risk assessment.
3. Enables quick payout to nominees in case of the life assured’s death. Typically within 30 days.

 

List of Documents Needed to File a Term Insurance Claim

When making a claim, submitting the right documents required for term insurance may help speed up the process. Commonly requested documents include:

1. Death certificate of the insured.
2. Original term insurance policy document.
3. Identity proof of nominee.
4. Claim form signed by the nominee.
5. Bank account information for the nominee.
6. Medical records, if needed.

Requirements can differ between insurers, so checking with the insurance company beforehand may be useful.

 

What to Do if You Lose or Misplace Original Documents Needed for Term Insurance?

If original documents are lost, it may be possible to provide approved duplicate copies. Some Points to consider:

1. Request a duplicate policy document from the insurer
2. Use notarized copies of identity and address proofs
3. Submit a written declaration explaining the loss
4. Keep digital copies of all documents for future reference
5. Contact customer support for guidance

Taking these steps may reduce delays and complications during policy use or claim settlement.

 

FAQs

 

1. Which income proof is required for term insurance?

Income proof may vary based on occupation and insurance policies. Salaried individuals need to submit salary slips or Form 16, self-employed applicants may provide ITRs, and NRIs may show overseas bank statements or tax documents.

 

2. How can I submit the documents required for term insurance purchase?

Documents may be submitted online using the insurer's site, by email, or in person at the branch. Scanned copies or images are also acceptable for expedited processing.

 

3. How many documents are required for a term insurance claim?

The documents required may vary depending on the insurer . Typically, it comprises the policy document, identification documents, claim form, death certificate and related medical reports.