What documents are required to buy term insurance?

Buying a term insurance plan is one of the most reliable ways to protect your family’s financial future. However, before approving your application, insurers must verify your financial capacity. That’s where income proof documents come in. Income proof helps insurers decide how much life cover you are eligible for, what premium amount you should pay and more. Let’s look at the essential income proof documents required for term insurance.

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Do insurers ask for income proof if I apply for ₹1 crore cover?

Yes, insurers ask for income proof when you apply for a term insurance cover. Your income helps the insurer decide how much life cover you are eligible for and what premium you need to pay.

Here’s a list of common documents you may be asked to submit as income proof:

Last 3 months’ salary slips
Last 6 months’ bank statement showing salary or income credits
Latest Form 16
Income Tax Returns (ITR) for the past 3 years
Audited profit and loss account and balance sheet
Recent salary certificate from your employer
Chartered Accountant (CA) certificate (not older than 2 months)
Land records and income assessment
Form 26AS (last financial year)
Mandi receipts (last 2 months)
Agricultural income certificate (valid up to 1 year)

If you’re not sure which income proof applies to you? Here’s a list of common documents for salaried and self-employed individuals:

Income Proof (For salaried person)

Last three months’ salary statement
The bank statement for the previous six months
The last three years' income tax returns and the recent Form 16
Rent receipt (issued in the last three months)

Income Proof (For self-employed person)

Bank statement (preceding six months)
Chartered Accountant’s Certificate issued in the last three years
ITR / Form 16 / assessment orders / Computation of Income issued in the last three years
Rent receipt (issued in the last three months)
Audited Company accounts issued in the last three years
Audited firm accounts issued in the last three years and the partnership Deed

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

When you buy a term insurance plan, the insurer will ask for your income proof. Here’s why:

Helps insurers check risk

Your income shows if you can pay premiums on time. If you have a steady income, the insurer may give you a higher cover. If your income is low or irregular, they may offer a smaller cover so the premiums don’t become too heavy.

Keeps you from being over-insured

Income proof helps the insurer suggest the right cover for you. This makes sure the policy fits your budget while still giving enough protection for your family.

Avoids claim problems later

If the details in your income proof don’t match or are false, the insurer may reject a claim in the future. Giving true and correct documents keeps your family safe and gives you peace of mind.

The Bottom Line

Financial documents are essential when buying term insurance. Be prepared to provide income proof, along with other important documents such as identity proof, address proof, and medical records. Submitting accurate documents ensures faster approval.

Frequently Asked Questions

Below are some important questions about term insurance and the essential documents required to buy term insurance.

1. Do insurers ask for income proof if I apply for ₹1 crore cover?

Yes, insurers usually require income proof when you apply for a ₹1 crore term insurance policy. This helps them verify your ability to pay premiums and assess the risk for such a high-value policy. Commonly accepted documents include salary slips, Income Tax Returns (ITR), bank statements, or Form 16.

2. What are the factors affecting your term insurance premium?

Some of the key factors that influence your insurance premiums are your age, lifestyle habits and choices, the sum insured, and the policy term. In addition, smoking affects your term insurance premiums.

3. How can I pay my term insurance premiums?

Almost every insurance company in India offers flexible premium payment options, including annual, quarterly, monthly, and bi-annual plans.

4. What are the documents required for the term insurance claiming process?

The essential documents required for raising a term insurance claim are a death certificate, policy document, medical records, police reports, beneficiary ID, and bank account details.

5. Can you buy a term insurance plan without income proof?

In most cases, you cannot buy term insurance without providing some form of proof of income. Insurers typically require proof of income to assess your ability to pay the premiums and to determine the appropriate coverage amount.

6. Do I need income proof for ₹1 crore term cover?

Yes, insurers usually require income proof when you apply for a ₹1 crore term insurance plan in India. It helps them confirm that the cover amount matches your financial capacity and lifestyle. Acceptable documents often include your salary slips, Form 16, income-tax returns (ITR), or bank statements. These details ensure that the chosen life cover is realistic and affordable for your income level.

Written by Neviya Laishram

1.7K Linkedin Followers

Reviewed by Vaibhav Kumar Kaushik

A senior editor with years of expertise, she fine-tunes content that connects, converts, and builds trust. She transforms heavy life insurance concepts into clear, aha-moment reads. Writing is her passion, and thinking ahead is second nature. When not wrangling words, she’s crushing game levels because every challenge is a puzzle waiting to be solved.