Can You Get Term Insurance Without Income Proof?

Ever felt held back by the "income proof required" checkbox while applying for term insurance? You’re not alone. Whether you're freelancing, a homemaker, in between jobs, or self-employed, the need for salary slips or ITRs can feel like a barrier, especially when protecting your loved ones should never wait for paperwork.

Now the truth is, you cannot get term insurance without income proof. Before approving your insurance application, insurance companies need to make sure that you will be able to make regular premium payments. However, the good news is that insurers have found alternatives to reduce the paperwork and evaluate your income digitally. This blog is your guide to navigating the system, understanding options, and securing the right cover so you can rest easy.

What is Income Proof in Term Insurance, and Why Does It Matter?

In simple terms, income proof in term insurance is documentation that shows how much you earn and how stable your income is. For term insurance, especially Term Insurance with Return of Premium (TROP), where the premiums are higher, income proof helps the insurer determine key things, such as:

• How much coverage are you eligible for?
• Whether your premium can be priced accurately based on your financial profile.

An income proof serves some crucial purposes:

• Payment Confidence: Insurers need to assess whether you can pay premiums consistently, ensuring the policy won't lapse.
• Right-Sized Coverage: It helps calibrate how much sum assured you genuinely need, versus what you can sustain.
• Claims Assurance: In the event of a claim, aligning income and coverage builds trust. This helps avoid disputes.

Commonly accepted documents include:

• Salary slips (last three months)
• ITRs (past 2–3 years)
• Form 16 or bank statements showing six months of income
• Employer-issued income certificates or CA-certified statements for self-employed individuals.

Can You Actually Buy a Term Plan Without Income Proof?

As we mentioned earlier, no you cannot buy term insurance without income proof. However, not everyone has neat, documented income records. Small business owners, gig workers, homemakers with family income support, or even people early in their careers often fall into this bracket. That doesn’t mean your family shouldn’t have a financial safety net.

Where Income Proof (salary slips and ITRs) May Not Be Mandatory

Certain term insurance options can still be available without conventional income documents, such as:

• Lower Coverage Amounts: For sum assured values in the lower range, insurers may relax documentation requirements.
• Spouse or Family-Linked Policies: If your spouse or primary earner has adequate proof and coverage, you may be able to take a complementary policy without producing your own income records.
• Simplified Entry Plans: Some term insurance plans are tailored for people in the unorganised or informal sector, where documented income is hard to show.

Important Caveats

While these options make coverage more inclusive, they do come with certain limitations:

• The sum assured ceiling may be lower, meaning you can’t opt for very high coverage without documentation.
• Premiums may sometimes be slightly adjusted to balance the higher underwriting risk.
• You might need to provide alternate proofs, such as bank statements, GST filings, or a declaration of occupation.

What Documents Can Replace Formal Income Proof?

• When traditional slips aren’t available, these alternatives could help:
• Bank Statements showing steady inflows (consulting, freelance payments, rent)
• Asset Documents (property ownership, vehicle RCs)
• Self-Employed Financials, like CA-certified profit-loss statements
• Spouse’s or Family Member's Income, in cases where they take policy ownership on your behalf.
• The key is to demonstrate financial reliability, just as you would with conventional documents.

Why This Matters, and How to Move Forward

Life doesn’t wait for documents or salary slips. But the need to protect those who rely on you can’t wait either.

Here’s how to move with confidence:

• Go for term plans that are tailored for your needs, especially if you do not have salary slips and ITRs as income proof. Insurers can assess your income via alternate digital methods.
• Use our term insurance calculator to estimate the right cover for your situation.
• Speak with an advisor, as having bank statements or asset proofs ready can still pave your way to approval.

Frequently Asked Questions

1. What can replace salary slips as income proof?

Bank statements, CA-certified statements, and assets like home ownership documents can serve as alternatives for income proof, depending on the insurer’s discretion.

2. Does missing income proof affect claims?

Missing income proof may not affect claims automatically, but a lack of documentation might lead to higher scrutiny during claims.

3. What if I’m not earning at all?

If you are not earning at all, a family member can step in as policyholder even while insuring you as the life assured. This is a common and accepted workaround.

4. Where does Bandhan Life stand?

Bandhan Life’s term plans are designed for real lives, including self-employed people and homemakers without conventional documentation, helping close that cover gap.