What Documents Will Be Required for a Term Insurance Plan?

Given that term plans are the purest form of any life insurance program, getting long-term financial protection for your family against the uncertainties of life can be an important decision. Having financial security for your family in your absence is significant.

This is where investing in a term plan can help in saving a lump sum amount for your family after your demise. But when it comes to buying a term policy, it is pivotal to understand everything about the application procedure.

When settling for an insurance policy, determining the kind of documents is a predominant affair. Here’s how you’d proceed with your documents when investing in a term insurance policy.

The Significant Documents Required for Purchasing a Term Insurance

If you want to invest in a term plan, here’s a list of documents you’d require.  Given below are the important documents that are necessary to buy a term insurance policy. These documents are required to purchase a term plan.

1. Officially Valid Documents (Any of these)

For officially valid documents, you would require these documents as mentioned below:

• Voter’s ID
• Passport
• Aadhaar Card
• National Population Register with details of address, Aadhaar number, and name

Alternatively, any Central Government document can help in applying for the term insurance policy.

2. Besides Officially Valid Documents, you would also require a PAN Card or Form 6.
3. Just in case the Officially Valid Documents doesn’t contain any updated address:

• You’d require the Utility Bill (that should be no more than two months) of the service provider (i.e., telephone, electricity, piped gas, postpaid mobile connection, or water)
• Property Tax Receipt or Municipal Tax Receipt
• Pension or the family PPOs or pension payment orders that have been issued to the retired one
• Employees by the PSUs or Government Department, in case they contain an address
• Letter of the allotment of accommodation from the employer that gets issued by the Central or State Government departments, regulatory or statutory bodies, scheduled banks (commercial), PSUs, financial institutions as well as the listed companies

4. Income Proof

For the Salaried Individuals:

A bank statement that shows salary credit for the current 3 months

• The recent Income Tax Returns of 2 years
• The recent year form 16

For Self Employed (Any of the mentioned ones)

• The recent Income tax returns (of 2 years) that filed in the same year alongside the Computation of income
• Most current three years income tax returns that have not been filed in the same year
• Certified balance sheet & profit-loss account for the two years
• 26 AS Form

Here’s how someone can purchase the term insurance plan & keep the documents needed for the term insurance coverage in advance.

But before Drawing a Closure,

Term insurance policies got introduced with a quintessential structure – the plan shall offer the sum assured upon the policyholder’s demise. Additionally, it also offers coverage until 65 years, and the premiums can get paid in the annual mode only. Today, you get a wide range of options like limited pay plans, the return of premium plans, staggered payout plans, increasing cover plans, and other combinations.