What Are the Documents Required for Buying a Term Insurance Plan?

Term insurance policies require some documents during policy application and claim settlement. Such detailed paperwork is necessary as insurance companies have to take financial risks in insuring 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.

The following is a list of all documents needed for purchasing a term insurance plan:

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.

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.

1. Documents Needed for Claims on Death Due to Health Conditions

• Original policy documents received during the purchase of the insurance plan.
  
• Duly filled form for death claim (Form A)
• Attested copy of the policyholder's death certificate provided by the local municipal authority
• Any one of the nominee’s ID proofs such as Passport, PAN Card, Aadhaar Card, Voter ID Card, etc.
• Bank account details of the nominee (bank statement/cancelled cheque)
• Form C, which states the attending physician's statement
• Medical records such as discharge slips or death summary

2. Documents Needed for Claims on Accidental Death

• All the documents mentioned above for death claims
• Original copy of FIR or Police Complaint
• Copy of Post Mortem Report

In addition, for an insurance claim on early death (death of the policyholder within three years of purchasing the policy), all the above documents, according to the nature of death, are needed.

3. Documents Needed for Maturity Claim

• Original policy documents received during the purchase of the insurance policy
• Discharge voucher issued by the insurer
• ID and age proof of the policyholder
• Bank account details of the policyholder

The documents you provide while applying for a term insurance policy help in confirming 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

• In a situation where you find that the documents required are missing, the first thing you should do is lodge an FIR about the missing document.
  
• After that, you should inform your insurance provider that the documents are missing.
• It is also crucial to apply for duplicate copies of the documents required at the concerned department and update your insurer about the same.
• In addition to this, the policyholder can also lodge a police complaint to authenticate and speed up the process of acquiring the duplicate copies.
• One can also opt for releasing an advertisement, in English or the corresponding vernacular language, to get hold of the lost documents.

A term insurance plan offers financial security to the policyholder’s family in exchange for premium payments. To ensure that one’s family has a hassle-free application and claim filing process, it is vital to know about all the documents required for a term plan and their importance.