Term insurance policies require some documents during policy application and claim settlement. Such detailed paperwork is necessary because insurance companies have to take financial risks to insure the policyholder.

Though it might differ across insurers, however, this is the most comprehensive guide about the documents required for a term plan and their importance.

Officially Valid Documents (Any of These):

• Voter’s ID Card
• Passport
• Aadhaar Card
• Form 60
• NREGA-issued Job Card signed by a State Government Official
• National Population Register, which contains details such as name, address, Aadhaar number, etc.
• Any valid document notified by the Central Government
• PAN Card (Additional Document)

1. Deemed as OVDs (Officially Valid Documents) as Per Rule 9 (18) of the PMLA Rules, 2019 (Any of these)

In a situation where the Officially Valid Documents do not contain your updated address, you can provide any of these documents.

• A utility bill which is less than two months old (phone, electricity, water, gas bill, etc.)
• Property or Municipal Tax Bill
• Employee Cards of Government sectors or PSUs (Public Service Undertakings) which have an address on them.
• Pension Payment Orders (PPOs) issued for retirement
• Accommodation allotment letters by Government sectors, PSUs, financial institutions, regulatory bodies and publicly listed companies.

Note: The address proof should typically be less than three months old for utility bills and bank statements.

2. Proof of Income/Salary

Applicable for Salaried Individuals (Any of the below listed):

• Income Tax Returns which are less than two years old
• Latest Form 16
• Bank statement with a salary credit of three months

Applicable for Self-Employed Individuals (Any of the below listed):

• Form 26AS
• The latest two years' Audit balance sheet and profit and loss account certified by a CA
• Income Tax Returns of the latest two years, along with computation of income. In case computation of income is unavailable, applicants must provide Income Tax Returns for the latest three years not filed in the same year.
• Profit and loss statement
• Bank statements showing income deposits
• Business registration proof

3. Income Tax Documents

Your income tax documents provide a detailed view of your financial health and income stability.

• ITR acknowledgement
• ITR V form
• Computation of Income
• Assessment order (if applicable)

4. Medical History and Health Records

Term insurance involves a medical evaluation to assess your health risk and determine premium rates.

• Recent Health check-up reports
• Medical history documentation
• Prescription records
• Hospital discharge summaries (if applicable)
• Records of chronic conditions
• Family medical history

5. Medical Tests and Investigations

Most insurance providers require mandatory medical tests as part of the application process

• Blood test
• Urine analysis
• ECG
• Lipid profile
• Diabetes screening
• Hepatitis screening

6. Nominee Details and Documentation

You will need to provide full details about your nominees as well when buying term insurance.

• Nominee’s identity proof
• Nominee’s address proof
• Proof of relationship such as birth certificate, marriage certificate, and affidavit (if applicable)
• Nominee’s photograph
• Signed nominee consent forms
• Nominee’s bank account details

1. NRI Applicants

• Passport and valid visa
• Overseas address proof and bank statements
• Foreign residency permit
• Income proof from foreign jurisdiction
• Foreign tax identification number

2. Freelancers and Independent Professionals

• Service contracts
• Client invoices
• Professional tax registration
• Yearly income statements

Scanned Document Upload

Digital Signatures

Video KYC (Know Your Customer)

Online Document Verification

The documents you provide while applying for a term insurance policy help confirm your identity. Given are some reasons why these documents are essential for term plans:

• Makes the process of application simple and hassle-free
• Simplifies the policy renewal process as well
• Establishes trust between the applicant and the policy company
• Helps to confirm your status as a resident of India
• Keeps the insurance provider updated with your past and current health situations
• Guarantees the policy’s  benefits to your family
• Speeds up the claim settlement process

Buying a term insurance plan requires careful preparation and documentation. By understanding and systematically collecting the required documents, you can streamline your application process and secure comprehensive life coverage for your loved ones.

Each insurance provider might have slight variations in document requirements. Always consult directly with your chosen insurance company regarding their specific documentation guidelines.