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What All Documents Are Required To Buy A Term Insurance?

What All Documents Are Required To Buy A Term Insurance?

It is common financial knowledge that life insurance in form or another should make up an essential part of every investor portfolio. In the event of unforeseen circumstances, life insurance offers individuals and families a financial safety net to fall back on and provide for their future needs for years. However, traditional life insurance policies can often come at premiums that are too high for a considerable portion of the population.

That is why term insurance plans have increasingly gained popularity as the insurance product of choice for many. With their economical premiums, flexible tenures, add-on riders and various term insurance tax benefits, term insurance plans are both a convenient and accessible insurance product.

As with all financial products, the process of buying a term insurance plan requires a specific set of documents from the potential policyholder. Here are the essential documents required from an individual to buy a term insurance plan:

Documents Required To Buy Term Insurance

It is almost impossible to always anticipate the financial emergencies that might arise in our lives. That is why one of the most essential financial advice that can benefit all individuals:

  • Proof of Identity: First and foremost, buying a term insurance plan would require an official photo identity proof from your end. This could be in the form of common identity proofs such as Aadhaar card, passport, PAN card, driving licence or Voter ID card. In certain cases, it could also be an official letter from a public servant or authority with an attached photograph.
  • Age Proof: Most term insurance providers also ask for a document that serves as an age proof to ensure that you meet their eligible age range. These documents can be any of the identity proofs mentioned above, since they also include your date and year of birth. Apart from these, you could also consider submitting documents such as a birth certificate, school or college leaving certificate or marriage certificate.
  • Proof of Address: The next document required to buy a term insurance plan is an official proof of your permanent address. This could be presented in the form of a passport, PAN card and other documents for identity mentioned above. It could also be a ration card, bank statement as well as an electricity or telephone bill.
  • Income Proof: Term insurance policies are granted on the assurance that the policyholder will be able to pay the premiums required for the entire tenure of his or her policy. To ensure the same, term insurance providers ask policyholders for certified documents of their source and type of income.

    Income proofs also play a huge part in determining the amount of the sum assured for your term insurance plan. Most term insurance providers are known to grant coverage that can go as much as 20 times the amount of your annual income.

    Your income proofs can be submitted in various forms and documents. You can submit the salary slips received from your employer for the past 3 months or your bank statement for the past 6 months with your salary entries.

    You can also submit relevant tax-related documents such as your latest Form 16 or your Income Tax returns over the past 2-3 years. In any case, you should keep these documents handy since they can help you make the most of your term insurance tax benefits during the next tax season.

  • Medical Reports: Your term insurance premiums and overall sum assured are dependent heavily on your current medical health as well any medical risks you might face in the future. That is why your past medical records and latest medical reports make up an important part of your term insurance documentation.
  • Photographs: As with all official applications, you are also expected to submit a specific number of your latest passport size photographs for verification.

With these proofs and documents in place, any individual can easily avail the many significant benefits of term insurance. You can also save a considerable amount of money every financial year by making the most of term insurance tax benefits as they apply to your specific policy.

It is recommended to avail a term insurance plan that has the backing of a reliable financial institution, provides various benefits and offers you immense flexibility with payments.To that end, the iSelect+ Term Plan, available on Canara HSBC Oriental Bank of Commerce Life Insurance, is an excellent option. It offers policyholders a variety of add-on riders that provide greater, additional coverage and benefits for a variety of unforeseen events. It also provides you the option to choose from a range of tenures, including complete coverage up to age 80.

Speak to an insurance specialist now!

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