Documents Needed For Buying Life Insurance

Documents Needed For Buying Life Insurance

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Buying a life insurance should be second nature to all of us. It is plain and simple. It is similar to wearing helmets before riding your bikes or wearing seatbelts before driving. Agreed, for the most part, one would not face any issues. But the only time you do and you do not have these precautionary measures, it can hurt you both physically and financially.

A life insurance then provides you with a safety net for any unpredictable incidents that might take place in the future. It ensures that should anything happen to a policy holder, their nominees or loved ones need not worry about the financial aspects at least. For you to buy a life insurance there are some mandatory documents that you need to furnish.

The list of documents might vary a bit from insurer to insurer. However, the general documents remain the same. Here is the list of documents that an insurer expects from you during the purchase of a life insurance.

Income Related Documents

The general rule of thumb says that one must secure a life insurance to the tune of 15 to 20 times their annual salary. For this to happen, an insurer might ask you for income related documents such as:

  • Salary slip for the previous three months.
  • The latest iteration of Form 16.
  • Income Tax Returns of the previous 2 to 3 years.
  • In the case of a Businessperson, a CA certificate would do.
  • Bank statements of the previous six months that includes the salary of the previous three months.

Address Related Documents

There is a long list of documents that qualifies for address proof. You must furnish one of them.

  • Aadhar Card.
  • Voter ID.
  • Electricity/Water/Telephone/Gas bill (not older than 3 months).
  • Bank statement for the previous 6 months.
  • Driving license, if there it contains the address.
  • License agreement.
  • Credit Card statement not older than 3 months.

ID Proof Documents

Insurers will accept any of the following documents as a proof of your ID.

  • Voter ID.
  • Aadhar Card.
  • Pan Card.

Age Proof Documents

Any of the following documents will suffice as a proof of your age.

  • Voter ID.
  • Pan Card.
  • Marriage Certificate.
  • Aadhar Card.
  • Driving License.
  • Birth Certificate.
  • Ration Card.
  • School or College leaving certificate.

Basic Eligibility to Buy a Life Insurance

The eligibility criteria again vary from an insurer to insurer. Insurers usually have a minimum entry age that one must have to be able to buy the policy. For an instance, while some companies will let you buy a life insurance policy if you are at least 18 years old, others require you to be at least 20 years old to avail the policy.

Similarly, there is a clause for maximum entry age for a policy. Most of the insurers have this limit set at 65-70 years. Apart from these, insurance providers also have a maximum age limit till which you can avail the benefits of a plan. This value is usually a bit higher than the maximum entry age of the policy. Some insurers also keep a lower limit of the sum assured that you can opt for a plan.

Why Compare Life Insurance

If you are out in the market to buy a life insurance, there are a large number of insurers with policies. Though at first, one might feel there is a large number of policies to choose from, it quickly becomes overwhelming. One can employ different methods and techniques to come to a conclusion before buying a policy. However, comparison remains the safest option.

Here are some of the more distinctive benefits of comparing a life insurance before buying.

  • More Affordable

On comparison, one can find out the quotes of similar policies from different insurers. This way, you can pick up a policy that has all the features and benefits that you are looking for without paying a higher premium.

  • Benefits

In silo, a policy might look and feel good. But when you compare different policies, you will be able to find out the benefits and features on offer. This allows you to pick up the most loaded policy at similar prices.

  • Riders

Add-ons or riders enhance the features and benefits of your policies. You will be able to find out which insurer offers better riders when you compare different policies.

Comparing life insurance policies before buying can not only save you some money but also let you enjoy better benefits.

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