Eligibility Criteria for Buying a Term Insurance Plan

Buying a term insurance plan may help your family with financial security if something happens to you. However, you need to meet certain eligibility criteria to buy the term insurance plan. They help insurers determine the suitable coverage and premium amount for you. Understanding the eligibility criteria may help you get your documents and information ready in advance. This article guides you through the detailed eligibility criteria for buying the term insurance plan.

Age Requirements and Residency

The minimum age to buy a term insurance plan is usually 18 years. The maximum entry age often goes up to 65 years, depending on the insurer. Moreover, you must be an Indian citizen or a Non-Resident Indian (NRI) to buy a term insurance plan. Some insurers may also allow Persons of Indian Origin (PIOs) to apply. In general, proof of citizenship or residency status is also required to complete the application process.

Income and Occupation

To get the best term insurance plan, you usually need to show that you have a regular income. Insurers often ask for documents like salary slips, bank statements, or income tax returns. This information helps the insurance provider check if you can pay your premiums on time. In addition, your occupation is often considered. If you work in a job that tends to be risky, your eligibility or premium rates may be affected.

Health and Medical History

Your health is also an important factor when you apply for a term insurance plan. The insurer often asks for your medical history and details about your current health. If you are applying for a high sum assured or you are an elder applicant, a medical check-up may be needed. Moreover, you may also need to share information about any past diseases or surgeries. This information assists insurance companies in determining the premium rate and other essential aspects of insurance.

Lifestyle Habits

Your lifestyle choices, such as smoking or drinking alcohol, may impact your eligibility and premium. People with habits that increase health risks often pay higher premiums. The insurers may ask about your travel information, especially if you frequently visit areas associated with security and safety concerns.

Documentation Required to Buy a Term Insurance Plan

While you apply for a term insurance plan, you must submit the following documents:

• Proof of identity (Aadhaar card, PAN card, or passport)

• Proof of age (birth certificate or school leaving certificate)

• Proof of address (utility bill or ration card)

• Income proof (salary slip, bank statement, or income tax return)

• Recent passport-size photographs

The exact documents required may differ from one insurer to another. Therefore, it is important to check what your insurance provider needs before you apply.

Conclusion

Meeting the eligibility criteria for a term insurance plan helps you complete your application smoothly and avoid delays. Moreover, choosing a trusted provider with helpful features may make managing your insurance easier and more transparent. For example, Tata AIA provides clear terms and conditions, a simple claim process, and transparency for an enhanced user experience. In addition, always review the policy details and ask questions if you need more clarity before making your final decision.

Disclaimer: The information provided above is for informational purposes only and is not intended as professional or legal advice. The Insurance Regulatory and Development Authority of India (IRDAI) is not responsible for any decisions made based on the information.