Eligibility for Term Insurance - Buy Term Plan Online 2026

Written by : Knowledge Centre Team

2025-12-25

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Term life insurance is a policy that provides financial protection to your loved ones. The policy pays a death benefit to the nominees if you pass away during the policy term. You should buy a term plan as early in life as possible to benefit from lower premiums. As you age, the risk of health issues generally increases, which can affect your premium.

You must know the term insurance eligibility criteria and the documents required before planning to buy a term insurance policy.

Let us learn more about it in detail.

Key Takeaways

The sooner you purchase term insurance, the lower your premium; age indeed is money
Whether you are a young working professional or approaching retirement age, term plans are suitable at different stages of life
You do not require a degree to avail yourself of an insurance policy; you merely need to meet the insurer’s health and age conditions
Your habits and patterns, such as smoking, directly affect your premium
Keep your Aadhaar card, driving license, and ITR handy to help speed up the process

Who Should Buy a Term Life Insurance Policy?

Different life stages come with different financial responsibilities. Whether you are starting your career, building a family, or planning for long-term financial obligations, a term life insurance policy can help provide financial protection to your dependents. Understanding who should consider buying a term plan can help you assess your coverage needs more effectively.

Young People in their 20s and 30s: Term life insurance policies significantly benefit individuals who have just started working and don't have much financial burden. If you buy a term plan at an early age, you can begin securing your financial future at lower premium rates.
Newlywed Couples: Individuals who have recently married may also buy term life insurance to secure their families. The couple can further opt for a joint life insurance policy to ensure that the surviving spouse is secured if any unfortunate mishap happens to one of them.
Parents: Individuals who have kids or intend to become parents in the future can also buy a term insurance policy, especially when they are the only breadwinners of the family. This term life insurance plan will ensure that, in case of your untimely demise, the expenses of your children are financially taken care of.
Senior Citizens: There is a common myth that taking term life insurance at an older age is not worth it. However, subject to the insurer’s maximum entry age, individuals at a later stage of life may consider term insurance to cover specific financial responsibilities, such as outstanding liabilities or dependents’ needs. Term life insurance is a pure protection plan and not a retirement or investment product.

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Who is Eligible to Buy a Term Insurance Policy in India?

Before buying a term insurance policy, you must evaluate your eligibility. Different insurance companies offer different plans, and the eligibility criteria of the plans may also vary.

Listed below are a few general criteria that may be a standard requirement of most insurance companies:

Age: To be eligible to buy a term insurance plan, you must be at least 18 years old. The maximum age depends on the policy and the life insurance company.
Citizenship: The person buying a term insurance policy should be a citizen of India. However, PIOs and NRIs can also buy a term plan.
Medical Tests: It is mandatory to undergo a medical test in most cases while buying term insurance. A medical test helps the insurance company to assess any health risks that may impact the policyholder. It is considered to decide the premium of the plan.
Lifestyle Habits: The term insurance premium for the person who smokes will always be higher than for non-smokers because they are more prone to significant health perils and, hence, require more risk coverage.
Minimum Educational Qualification for Term Insurance: Surprisingly, there's no minimum education requirement mandated by law for purchasing term life insurance in India. The focus for insurers is on your insurability, which is determined by factors like health, age, lifestyle habits, and income.

Benefits of Term Life Insurance: Financial Security and Tax Savings

Term life insurance policies help you stay secure and ensure the financial security of your loved ones. A person paying premiums can claim a tax deduction of up to ₹1.5 lakhs under section 80C of the Income Tax Act. Further, if the annual premium is less than 10% of the sum assured, the benefit conferred to the nominee will be exempted under Section 10(10D).

Buying a term insurance policy is essential for a financially secure and stress-free life. They are one of the most suitable financial instruments you can opt for at any age to protect and safeguard your family.

Who is Eligible to Buy a Term Insurance Policy in India?

Before buying a term insurance policy, you must evaluate your eligibility. Insurance companies offer different plans, and eligibility criteria may vary from one plan to another.

Listed below are a few general criteria that may be a standard requirement of most insurance companies:

Age: To be eligible to buy a term insurance plan, you must be at least 18 years old. The maximum term plan age limit varies by policy and insurer.

Citizenship: The person buying a term insurance policy need not be an Indian citizen. However, Indian residents, PIOs and NRIs can also buy a term plan, subject to the insurer’s underwriting guidelines.

Medical Tests: It is generally mandatory to undergo a medical test in most cases while buying term insurance. A medical test helps the insurance company to assess health-related risks that may impact the policyholder and is used to decide the premium of the plan.
Lifestyle Habits: The term insurance premium for the person who smokes is usually higher than for non-smokers because they are more prone to significant health perils and, hence, require more risk coverage.
Minimum Educational Qualification for Term Insurance: There is no legal minimum education requirement to purchase term life insurance in India. The focus for insurers is on insurability, which is determined by factors such ashealth, age, lifestyle habits, and income.

Did You Know?

From 22 Sept 2025, GST on all individual term life insurance premiums in India was reduced from 18% to 0%, making coverage more affordable

Source: FinancialServices

Documents Required to Buy a Term Insurance Policy

Submitting the necessary documents is an essential part of buying term insurance. Listed below are a standard set of documents that you may be required to submit to the insurance company:

Documents	Type of Proof
Passport	Identity and Address Proof
Voter’s Identity Card	Identity and Address Proof
Driving License	Identity and Address Proof
Aadhaar Card	Identity and Address Proof
Latest Income Tax Returns	Financial/Income Proof

The insurance company may request additional documents based on the sum assured, age, income, and underwriting requirements while processing your term plan application

Wrapping Up

Term life insurance is a valuable financial tool that provides peace of mind by ensuring your loved ones are financially secure in the unfortunate event of your passing. It's affordable, especially when you purchase a plan at a young age, and offers significant protection benefits.

Here are the key takeaways to consider when evaluating your term life insurance needs:

Who needs it: Anyone with dependents or financial obligations should strongly consider term life insurance. This includes young professionals, couples (especially newlyweds), parents, and individuals at later stages of life, subject to the insurer’s age eligibility criteria.
Eligibility criteria: Generally, you must be at least 18 years old, and the maximum entry age is decided by the insurer and policy terms. There is no minimum education requirement, but insurers will consider your health, lifestyle habits, and income to determine your eligibility and premium amount.
Benefits: Term life insurance offers a death benefit payout to your designated beneficiary if you pass away during the policy term. This can help cover expenses, pay off debt, or ensure your family's financial future.

Remember, getting a term life insurance quote is easy and free. Don't hesitate to compare plans from different insurers to find the best coverage at an affordable price. By securing a life insurance policy, you can protect your loved ones no matter what life throws their way.

Glossary

Nominee: The person designated to receive the death benefit payout from the life insurance policy
Death Benefit: The amount paid by the insurance company to the beneficiary upon the death of the policyholder during the policy term
Sum Assured: The coverage amount paid as a death benefit to nominees if the insured dies during the policy term
Underwriting: The insurer’s process of assessing health, age, income, and risk factors to decide the premium and eligibility
Policy Term: The duration for which the term insurance cover remains active, as chosen at the time of buying the plan

FAQs Related to Term Insurance Eligibility

A person must be at least 18 years old to buy a term insurance policy in India.

Yes. You pay the premiums to the insurance company, and the company provides coverage in return. So, when you buy a term insurance plan, your income will be assessed to determine whether you can pay for the insurance policy.

There is no minimum education qualification required to buy a term insurance plan in India. Insurers mainly assess eligibility based on age, health, income, and underwriting requirements.

Insurers assess risk. They check eligibility (health, age, lifestyle) to see how likely you are to claim, which helps them set your premium.

There are no minimum salary criteria for term insurance in India, but insurers may consider income to ensure you can afford premiums.

Disclaimer - This article is issued in the general public interest and meant for general information purposes only. The views expressed in this blog are solely those of the writer and do not necessarily reflect the official policy or position of Canara HSBC Life Insurance Company Limited or any affiliated entity. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained in the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. You should consult with a qualified professional regarding your specific circumstances before taking any action based on the content provided herein.