What Are the Documents Required for Term Plan?

Many investment experts worldwide have corroborated that a life insurance policy in one form or the other should be an integral part of the investment portfolio. In the event of unforeseen circumstances like sudden demise, critical illness, or an accident, life insurance gives the policyholders and their families a financial cushion to fall back on and meet their regular expenses. However, the traditional life insurance policies have a higher premium, which makes them unaffordable for many.But, not all life insurance policies are expensive. If you are looking for a robust life insurance policy with a high sum insured at an affordable cost, a term insurance policy would perfectly suit your needs. With benefits like affordable premium, flexibility to choose the tenure, add-on covers, and tax deduction, term insurance plans have become the most preferred choice of life insurance for many.When you purchase a term plan, you must know about the buying process, including the documents required for term plan. While the documents required for a term plan may vary from insurer to insurer, most companies ask for the following documents:

• The application form duly filled and signed.
• Passport-size photographs.
• Proof of identity (Aadhaar card, passport, PAN card, election card, driving licence, bank passbook with a photograph, ID issued by any central or state government body)
• Proof of residence (utility bills, ration card, passport, Aadhaar card)
• PAN card / Form 60

If any of the officially accepted documents do not contain the latest/updated address, you must submit the following documents:

• Utility bill – landline telephone, electricity bill, post-paid mobile bill, a gas bill (not more than two months old)
• Municipal tax receipt
• PPOs (Pension Payment Orders) issued by the government body to the retired employees.
• Letter of allotment of accommodation from the employer issued by statutory bodies, PSUs (public sector undertakings), scheduled commercial banks, state or central government departments.

Apart from the documents mentioned above, you must also submit income-related documents. This varies based on whether you are a salaried employee or a self-employed professional.

• Latest Form 16
• Proof of Income tax returns filed for the last two years.
• A bank account statement showing salary credit for the last three months.

• Proof of income tax returns for the last two years.
• Copy of balance sheet, profit and loss statement of the business for the last two years duly audited by a certified chartered accountant (CA).
• Form 26AS

When you compare the different term insurance plans from different insurance companies, you must check the documents required. Most insurance companies have a simple documentation process. But, it is advisable that you keep the necessary documents handy before submitting your insurance application form. This will help you avoid the last-minute hassles and ease through the purchase process without any delay.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.