A term insurance plan is an affordable financial tool that can offer financial security to your loved ones in your absence. With a term insurance plan, you can get a high sum assured at comparatively lower premiums. Not just this, term insurance plans offer a bunch of other optional benefits as well like a critical illness cover, terminal illness cover, accidental death cover, permanent disability cover, and more.

If you are considering buying a term insurance policy, it is necessary to understand the process of application. You need to submit income proof for term insurance, along with some other essential documents, at the time of purchase. Keep on reading to find out what these are and why they are important.

List of documents that can be submitted as income proof for a term insurance plan​

Here are the documents that can be submitted as income proof for term insurance:

Can you buy a term insurance plan without income proof?

It is not possible to purchase term insurance plans without income proof. All insurance companies demand income proof at the time of purchase. The income statements of the applicant help the insurance provider to ascertain the right sum assured and premium for the policy. It also indicates to the insurance company how much risk an applicant entails.

Why is income proof necessary to buy a term insurance plan?

Here are some reasons why you need income proof for term insurance:

It is also essential to understand that income proof is a vital document that all insurance companies evaluate before offering you a term insurance plan. In case of any mismatch of information or if the documents are found to be forged, the insurance company can reject the claim at a later stage. Therefore, it is very important to submit honest and accurate information only. This will offer you better peace of mind and keep your family financially safe in your absence.

Other important documents required along with the income proof to buy a term insurance plan

Here are some other important documents that need to be submitted along with the income proof when you buy a term insurance plan:

To sum it up

Since it is not possible to purchase term insurance plans without income proof, it is in your best interest to submit accurate and correct information to the insurance provider. Lying or providing misleading information can put your family members through a lot of inconvenience and chaos at a trying time. Moreover, overstating or understating your income will fetch you a premium and sum assured that would not fit into your budget or future needs. Hence, to be safe and sure, always provide the right proof and documents and be truthful.

COMP/DOC/Dec/2021/2712/7137