Essential Documents Required for Term Insurance

Securing a term insurance plan is a significant step towards protecting your family's future. However, the process can sometimes seem daunting, especially when gathering all the necessary paperwork. But don't worry! We're here to guide you through the essential documents required for term insurance, making the process simple and stress-free.

Before enjoying the peace of mind that comes with a term insurance policy, you'll need to submit a few key documents. These help insurers verify your identity, age, income, and health, ensuring everything is in order. Let’s break down the essentials:

Proof of Identity Document (ID) and Address

Here are some documents you need to prove your identity, while buying a term insurance plan. Think of these as your introduction to the insurer.

PAN Card: Your PAN card is like your financial fingerprint, essential for tax purposes and identity verification.

Aadhaar Card: Aadhaar is your all-in-one card, offering a complete snapshot of your identity and residence.

Drivers’ Licence: Your drivers' licence is a proof of age as well as residence.

Voter ID card: confirms your identity and residential address/ citizenship.

Passport: Keep your passport handy, as it is recognised as a valid ID and address proof worldwide. It can also serve as proof of your marriage if you have your spouse’s name on the passport.

Age Proof

Determining your age helps in calculating premiums and ensuring eligibility. Here are some standard documents required as age proofs when you buy term insurance:

Birth Certificate: This is the gold standard for verifying your date of birth.

PAN: Your PAN maybe your financial fingerprint, but it also can serve as your proof of birth

Class 10 marksheet/ school leaving certificate: Your Class 10 marksheet and school leaving certificate can also be considered age proofs.   

Other documents: Your driver’s licence, passport have your birthdate too and will work as proof of your age. Your marriage certificate can also double up as proof of age and marriage. It is especially useful for homemakers buying life insurance.

Income Proof

Your income proof tells the insurer about your financial capability, helping them determine the sum assured.

Salary Slips: These provide a clear picture of your regular earnings.

Income Tax Returns (ITR): A comprehensive way to showcase your income over the year.

Bank Statements: Reflect your financial transactions and stability.

Medical Reports

Depending on your age and the sum assured, you may need to submit medical reports. These help assess your health status and determine the premium.

Passport Size Recent Photograph

While you put together the documents required for buying term insurance, don’t forget your passport-size photograph. A recent photograph is needed to personalize your policy. Think of it as putting a face to the name!

Essential Documents for Filing a Term Insurance Claim

When it’s time to file a claim, having the right documents ready is crucial. Here's what you'll typically need:

Original Policy Document: Your original policy document is your contract with the insurer. It contains all your policy details and terms and conditions.

Claim Form: The claim form is the official request for the claim, which can be downloaded from your insurers website. It needs to be accurately filled to ensure that your claim is honoured.

Death Certificate: Official proof of the policyholder's death.

Medical Reports: If applicable, these document the cause of death. They can also help you claim your rider benefits, such as critical illness (comprehensive care) and waiver of premiums.  

FIR Report: In case of an accidental death, you would need to submit the First Information Report (FIR) filed with the police at the time of the accident.

ID Proof of the Claimant: To verify the identity of the person filing the claim.  

Steps to Take If You Lose Your Original Term Insurance Documents

Lost your original documents? Don’t panic! Here's what to do:

Notify the Insurer: Let your insurance company know immediately.

Request a Duplicate Policy: Submit a written request for a duplicate copy.

Provide a Lost Policy Declaration: You may need to give a notarized affidavit explaining the loss.

Pay Applicable Fees: Some insurers may charge a small fee for issuing duplicates.

Wrapping it up!

Choosing the right term insurance plan is crucial, and having the correct documents is a vital part of the process. These documents facilitate a smooth application and ensure your loved ones can easily claim the benefits when needed. Remember, a well-prepared application is the first step toward securing your family's future.

At Bandhan Life, we have simplified this process and have minimised the documentation process. We conduct our KYC using your PAN or Aadhar and can verify your income using your phone number. You won’t be asked to scan or upload any documents unless it’s absolutely necessary. Once you purchase your term plan, you can download the policy documents and medical reports by logging into our self-service platform using your registered mobile number.  

 Experience our hiccup-free journey get started now.  

Frequently Asked Questions

What is the eligibility for a term plan?

Eligibility typically includes being between 18-65 years old and meeting specific income and health criteria.

Is ITR mandatory for a term plan?

While not always mandatory, Income Tax Return (ITR) is often recommended as it provides comprehensive income proof.

Is income proof required for term insurance?

Yes, providing income proof helps determine the appropriate sum assured and premium.