Life insurance is the important aspect in financial planning. This helps to ensure family has financial assistance, even in the absence of earning member. It can help to achieve family members goals even in the absence of the earning member. One can consider a simple term plan or a life insurance + savings plan or endowment plan or money back plan. However, one need to submit a few important documents to apply for life insurance. This article outlines various documents that are required to buy a life insurance policy.
What is a Life Insurance Policy?
Life Insurance in simple terms provides risk coverage to the life insured. In case of unfortunate death of the life insured, the nominee or family members would get sum assured. There are various types of life insurance plans like term plan, endowment plan, money back plan, premium return term plan etc. One can consider appropriate plan based on the features and the need of the individual.
What documents are required to buy a Life Insurance Policy?
Since we understood what is life insurance plan, let us provide you the documents required to buy such life insurance policies.
#1 – Proposal Form
Life insurance policy application form or proposal form contains the complete details of the life insured, sum assured amount, address for communication, nominee details, pre-existing diseases etc.
If the applicant is opting for an online life insurance policy, they can just visit the insurance company portal, visit the respective policy link and fill the application form with all these details.
In case of offline plans, the applicant needs to approach the insurance company branch office or agent and get the proposal form. Such form should be duly filled and signed.
#2 – Proof of Address
Any of the following documents can be submitted for proof of address to the insurance company.
Voter’s ID Card
Bank Statement of past 6 months
One should note that in all above documents, name should be clearly mentioned.
#3 – Identify Proof (ID Proof)
Below are the eligible documents that can be considered as ID proof by insurance companies.
#4 – Income Proof
Below documents can would be considered as income proof by the insurance company.
Salary Slips for the past 3 months
Bank Statement where salary / income is credited
Income Tax Returns (ITR) for the past 1-3 years
Generally, insurance companies would issue life insurance only if the applicant has income. For some reasons, individuals might not be able to provide such documents. Due to this, IRDA has come up with Saral Term Insurance Plans where there is limited documentation needed.
#5 – Age Proof
Below documents would be considered as age proof by an insurance company to issue life insurance plans.
Voter ID Card
#6 – Passport Size photographs
Need to be provided if insurance company demands. If requested, one need to provide 2 latest photographs.
#7 – Medical reports
If the applicant has any pre-existing diseases, they might ask for medical reports to further examine. In such case, individuals need to provide any recent medical reports. If there are no latest reports available, an insurance company might force them to go for medical checkups where the cost would be borne by the insurance company.
Once you gather all documents like proposal form, age proof document, ID proofs, income proofs, passport size photographs and medical reports (if any), you can submit them to the insurance company. The process of validation by insurance company could be different among insurance companies and they might ask any additional documents.
What happens in case of submission of incomplete or incorrect documents?
If any of the documents submitted are incomplete or incorrect, the insurance company might reach to the applicant and ask to resubmit them. Failure of submission of complete or correct document would lead to the rejection of the proposal form.
If you can understand the list of documents required to purchase a life insurance policy, it would ease the entire process with the insurance company.
- ManipalCigna Launches ProHealth Prime Plan – Covers OPD expenses - July 24, 2022
- Max Life Smart Capital Guarantee Solution – Features, Eligibility and Review - July 10, 2022
- LIC Dhan Sanchay Plan 865 – Features, Eligibility and Review - June 19, 2022