Even if one knows what is term insurance and how purchasing it is simple, there is no workaround for the documentation involved. Without the correct documents, you risk having your protection under a term life insurance policy denied. Term insurance is a valuable tool for reducing the risk of lost income in the event of the life assured's untimely demise.

The amount assured upon their passing can assist the family in paying for future expenses such as child-rearing, educational costs, and medical costs. You can find these details and premium rates suited for your needs by accessing the online term insurance calculator.

You must have the necessary papers before purchasing term insurance, so that the insurer can provide the required coverage.

What paperwork is necessary to buy term life insurance?

What is term insurance paperwork?

When applying for term insurance, all insurance companies want to see proof of income, proof of identity, and a medical report if the policyholder is 45 years old or older.

Let's look at each of these in more detail so you can decide which documents you may provide to meet the insurance company's requirements

The importance of the documents mentioned above is as follows:

1. Income evidence:

The amount of life insurance you are eligible for depends on your income. You must therefore present verifiable evidence of your revenue.

The following documents are admissible as proof of income:

• Past three months' worth of payslip
• Returns for the three most recent assessment years (ITR)
• Bank statement from the previous six months showing your income and salaries
• Most current Form 16
• Audited balance sheet and profit & loss statement for the last three assessment years
• A copy of your employer's most recent wage certificate
• The CA Certificate (not more than 2 months old)
• Certified agricultural income (not more than 1 year old)
• Income Assessment and Land Records (current)
• AS Form 26 (last financial year)
• Mandi Recipients (last 2 months)

2. ID and proof of address:

When you purchase term insurance, the KYC process requires that you provide valid address verification. The following records can be used for this:

• Aadhaar card
• Passport
• Driver's license
• Voter identification card
• Job card provided by the National Rural Employment Guarantee Act of 2005 (NREGA), each of which has been endorsed by a state government official

3. Evidence of age:

Every term plan has a minimum and a maximum entry age. Therefore, when you purchase a term plan, you must present proof of your age. This evidence can be provided via your PAN card.

When getting term insurance, you must submit a copy of your PAN card or Form 60.

Make sure to scan or take a picture of both the front and back of the documents if you plan to upload them online to purchase term insurance. Only the face of your PAN card would do.

4. Recent passport-size photo:

You must take and upload a picture of yourself while applying for a term plan online. Consult the insurance company's rules regarding acceptable file sizes and picture formats.

You may also need the specifics of any other life insurance policies you currently own, in addition to the documentation needed for term insurance. Thus, it can be beneficial if you keep a copy of your current policy documentation on hand when you purchase a new term insurance policy.

5. Health reports:

Your medical tests can be scheduled by the insurance company on the dates and times that work for you. Blood sample collection at home would sometimes be allowed. Your medical records may be sent to the insurer by the diagnostic facility. The reports are available for viewing and downloading on the insurer's website if you'd like.

Conclusion:

When you apply for term insurance, you can upload scanned copies of the necessary documents online via the insurance provider's web portal. Alternatively, you can also find suitable premium rates by using the online term insurance calculator provided by the insurer.

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.