What Documents Should I Have to Buy a Term Life Insurance Plan Online?

Looking to opt for term life insurance but unsure if you have all the required documents? The process becomes simple and convenient if you have a readily available soft copy of documents for submission. It speeds up the application and approval, allowing a smooth beginning of the premium payment process. Furthermore, prior information about the necessary documents prevents last-minute hassle as well. Hence, to aid in streamlining your term life insurance application, here is a complete article dedicated to the required documents.

Here are detailed insights into the essential documents for term life insurance: 

Identity Proof:

An official and government-approved identity proof is required to verify identity. The documents that can be submitted in this category include: 

• Aadhaar card

• Driving license 

• Passport 

• Voter ID card 

• PAN card 

• An official letter from the public service or authority, with the attached photograph.

The front and back copy of these documents is required. 

Importance: It is the essential document to ensure the policy is taken under the name of the individual the company is interacting with. It also helps verify if the names and documents of the applicant aren’t forged under someone’s name or identity. 

Age Proof:

Age can be exhibited by the documents comprising the date, month, and year of birth. Identity proof documents are applicable for birth proof if they contain relevant details. Besides this, the generally considered age proof documents include: 

• Birth certificate.

• College leaving certificate/transfer certificate/migration certificate.

• Marriage certificate.

The front and back copy of these documents is required.

Importance: These proofs are mandatory to identify the eligibility of the individual for the chosen policy. This is because there remains an age limit for opting for different types of life insurance policies. 

Address Proof:

The valid government document that includes your residential address acts as the address proof. The documents that can be used in this category are: 

• Bank statement

• Raion card

• Passport

• PAN card

• Telephone bill

• Electricity bill

• Pension Payment Orders (PPO) of retired individuals.

• Municipal or property tax receipt.

• Allotment of accommodation letter issued by the employer and authorised by financial institutions, government bodies, PSUs, or others.

The front and back copy of these documents is required.

Importance: It is used to verify if the applicant is truthful about where they live. Further, in case of any unfortunate event, finding the family members is easier with prior and accurate address availability. 

Income Proof:

The proof of income must clearly show the source of income or the presence of funds in the account of the potential policyholder. The documents eligible for income proof are: 

Salaried Individuals:

• Past six months' bank statement, comprising the salary entry (in JPEG, JPG, or PDF format; Excel and Word formats are not acceptable).

• Past three months' salary slip from the employer (in JPEG, JPG, or PDF format; Excel and Word formats are not acceptable).

• Last two years’ income tax returns.

• Recent Form 16.

• Appointment letter with the latest month's salary slip (only in the condition that the applicant is a fresher or has recently changed jobs).

Self-employed individuals:

• Last two years’ income tax returns.

• Previous two years’ audited balance sheet and profit and loss account by a certified CA.

• Tax-related documents like Form 26AS of the previous financial year.

Housewives: 

• Past six months’ savings bank account.

• Past six months’ credit card statement exhibiting the credit limit.

• Past twelve months’ home loan repayment statement aligned with the bank statement, exhibiting a debit during the same period.

• Past twelve months’ SIP statement.

• Latest Insured Declared Value (IDV) of the car owned by the housewife.

• The term insurance policy document of the husband. 

Importance: It is required to verify the income stated by you while filling out the form or during the interaction with a company employee. It is also used to verify your capability to pay the premiums for the desired insurance policy.

Medical Reports:

It includes the reports of the blood tests and other medical examinations conducted by certified laboratories. 

Importance: The medical records serve as proof that you are not hiding the already existing medical conditions. It also serves as a clear record of possible medical risks in the future. The current health status helps identify the existing expenses, too. The records have an impact on the type of policy chosen by the applicant. 

Photograph:

A few copies of the passport-sized photographs are also required. 

Note: You don't need to submit all the listed documents. Instead, one or two documents from each category will be sufficient to purchase the term insurance plan. 

Providing the documents to claim the life insurance plan is possible both online and offline. The online methods include email and mobile app-based submission. The key documents to be provided during the procedure include: 

• Original policy documents (if available).

• Original or attested copy of the death certificate of the policyholder issued by the local municipal authority.

• Death claim application form.

• NEFT mandate form attested by bank authorities, along with a cancelled cheque or bank account passbook.

• Credit and loan account statement (in case of group credit life claims only).

• Nominee’s photo identity proof, such as PAN card, Aadhaar card, voter ID card, passport, or others. 

Conclusion

The presence of the right documents with easy accessibility streamlines the term life insurance application process. The documents are required for different categories, such as verification of identity, age, proof, address, income, and physical health. Submission of accurate documents in each category is essential to ensure smooth and quick processing. Hence, get the mentioned documents ready. If you have alternative proof available, it is advisable to confirm with the insurer whether those documents are acceptable for policy issuance. For example, the iSelect Smart360 Term Plan from Canara HSBC Life Insurance requires standard KYC documents for processing. Ensuring accuracy and readiness of documents will help in smooth application.