If you want to protect your family against the uncertainties of life, a term insurance policy might just be what you need. A term policy is an affordable life insurance plan that pays a hefty death benefit to the policyholder’s nominees. Purchasing the policy will offer peace of mind, as you know that your loved ones will be financially stable when you are not with them.
You can buy a term plan online in minutes. All you need to do is visit the website of your preferred insurance company and submit the online application form with the required information. During the application process, you need to upload specific documents as proof of your identity, income, address, and more. Here is a list of documents you can use for this purpose:
- Valid official documents (any of these)
- Voter’s ID card
- Passport
- Aadhaar card
- National Rural Employment Guarantee Act (NREGA)-issued job card that is signed by a State Government officer
- National Population Register (NPR) that contains your Aadhaar number, address, and name
- Other Central Government notified document
- Compulsory document
- Form 60/PAN card
- Other acceptable documents
It is mandatory to provide your address proof to the insurer while purchasing a term life insurance policy. If you have recently shifted to a new address and the above-mentioned documents are not updated, you can submit any of the other acceptable ones from the below list:
- Telephone, electricity, piped gas, postpaid mobile, or water bill (Cannot be over two months old)
- Family or individual pension payment orders (PPOs)
- Municipal or property tax receipt
- Letter of allotment of accommodation from your employer issued by regulatory bodies, Central or State Government branches, Public Sector Undertakings (PSUs), financial institutions, commercial banks, and any other organization listed by the insurer
- Employment document issued by PSUs or Government Departments
- Proof of income for salaried people (any one of these)
- Form 16 of the current year
- Income tax returns for the previous two years
- Bank statement with last three months’ salary credit information
- Proof of income for self-employed (any one of these)
- Income tax returns filed in the last two years, including computation of income
- Income tax returns filed in the past three years in case the computation of income is not available
- Form 26 AS
- Audited profit and loss account and balance sheet for the last two years certified by a Chartered Accountant (CA)
Why you need to submit the documents
A term policy is one of the most cost-effective plans to provide your family with a financial safety net. However, it is essential that you carefully submit all the necessary documents to get approval from the insurance provider while purchasing the term plan. These documents provide the insurer with information regarding your identity, contact details, and other required data. However, these documents have many other purposes, too. These include:
- Informing your insurance provider about your current monetary situation and health condition
- Proving that you are a resident of India
- Helping the insurer to process your application without any hassle
- Making the renewal process simple for future policy continuation
- Establishing trust between you and the insurance company
- Making the claim settlement process easier and faster
- Ensuring that the insurer cannot reject your nominee’s claim due to a lack of documentation
Once you upload all the documents, you can proceed to apply for the term plan by selecting the sum assured. You can use an online term insurance calculator to get an idea about the payable premium. Comparing different plans based on the premium will help you find an economical option.
