Eligibility Criteria for Buying Term Insurance in India

Term insurance is an essential part of financial planning since it protects and secures your loved ones in the event of an unexpected event. In this essay, we'll review the fundamentals of term insurance and the requirements for acquiring it in India.

What exactly is a term plan?

A term insurance plan, commonly known as term life insurance, is an insurance policy that only provides life insurance.

It does not have an investment component, unlike other types of life insurance contracts. This means that the primary goal of a term plan is to safeguard your family's finances rather than to accumulate riches over time.

Eligibility for Term Insurance

To be qualified for a term plan in India, you must normally meet the following requirements:

Criteria for Age: Most insurance firms provide term policies to those between 18 and 65. The age restriction may differ slightly from one insurer to the next.

Minimum Earnings: Before issuing you a term plan, insurance companies frequently examine your yearly income. This is to guarantee that you can afford to pay the premiums. The minimum income need varies per insurance.

Health Situation: Insurance companies may require you to have a medical exam to assess your health. While some term plans do not need a medical exam for younger applicants, it becomes increasingly typical as you become older.

Who Should Get Term Insurance?

Term insurance is required for everyone who has dependents or financial obligations. If you have a family that relies on your income, a term plan can secure their financial security if you die. It is appropriate for:

Individuals who are the principal earners in their families are referred to as breadwinners.

Parents who desire to protect their children's future, including their children's schooling costs.

Individuals who have loans or obligations should guarantee that their liabilities do not burden their families.

Documents Required to Purchase a Term Plan

When acquiring a term plan in India, the following documents are usually required:

lAadhar card, PAN card, passport, or voter ID are all acceptable forms of identification.

lPassport, utility bills, or rental agreements can be used as proof of address.

lIncome documentation: pay stubs, income tax returns, or Form 16.

lMedical reports: If the insurance requires them.

Conclusion

Finally, term insurance is an important financial instrument that offers a safety net for the future of your family. It provides them financial security even if you are unable to provide for them. To be qualified for a term plan in India, you must fulfill certain age, income, and health requirements.

This insurance is essential for breadwinners, parents, and everyone with financial obligations. When acquiring a term plan, make sure you have all of the appropriate papers ready to go.