Term insurance is crucial to safeguard your loved ones against financial hardships due to any unforeseen event. However, buying a term insurance involves the submission of KYC and other relevant documents. Hence, you should be aware of the documents you need to furnish. You can then keep them ready and make the buying process hassle-free and rapid.
Here's a list of all the documents required for a term insurance purchase:
Your income determines the amount of life cover you can opt for. Therefore, you need to provide valid proof of your income. The documents acceptable as income proof include:
- Past three months’ salary slip
- Last three assessment years' Income Tax Returns (ITR)
- Last six months’ salary bank statement showing your salary/income
- Most recent Form 16
- Last three assessment years’ audited profit & loss account and balance sheet
- Latest salary certificate from your employer
- CA Certificate (not more than 2 months old)
- Agricultural income certificate (not more than 1 year old)
- Land records and Income Assessment (current)
- Form 26 AS (last financial year)
- Mandi Receipts (last 2 months)
ID and Address proof:
Valid address proof is essential for the KYC process when you buy a term life insurance. The following documents can serve this purpose:
- Masked Aadhaar card
- Driving license
- Voters ID
- Job card supplied by the National Rural Employment Guarantee Act 2005 (NREGA) signed by a state government officer
Every term plan features a minimum and a maximum age of entry. Hence, you have to provide confirmation of your age when you buy a term plan. Your PAN card can serve as this proof.
Submitting your PAN Card copy or Form 60 is mandatory when buying a term insurance.
If you are uploading these documents required for a term insurance online, make sure you scan/snap pictures of both the front and the back of the documents. But for your PAN card, only the front side will suffice.
Passport size recent photograph
When you buy your term plan online, you must click your photo and upload it while applying. Check the insurance provider's guidelines about the prescribed file size and picture formats. Usually, jpg, jpeg, png, and tiff formats are the norm.
Apart from these documents required for term insurance, you will also need the details of other life insurance policies you own. You have to enter the insurance providers’ names and life cover amounts when you fill out the proposal form. Hence, it will help if you kept your existing policy documents handy when you buy a new term insurance plan.
While filling up the application form, you will have to provide details about your health conditions and pre-existing diseases, if any. Based on your responses, your insurer might ask you to undergo medical checkups to assess your current health situation. Approval of your policy and your premium amount depend on such parameters.
The insurance company will arrange for your medical tests on the date and time as per your convenience. Home collection of blood samples are also permitted in some cases. The insurer will receive your medical reports from the diagnostic centre. If you want, you can view and download the reports from the insurer's website.
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 visit the nearest branch or email the documents to your insurer.
Make sure that you don't suppress any fact or provide any inaccurate information. This is vital for claim acceptance. When raising a claim, your nominee will need to provide relevant documents required for a term insurance claim. These are different from the ones you need while buying your term plan. However, your ID proofs and PAN will be required. Remember to keep your details on your term insurance policy up-to-date to enable your loved ones to receive financial support in their hours of need.