Income proof mandatory for term insurance

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A term insurance plan is a basic type of life insurance. It provides long-term comprehensive financial protection to the survivors of the individual who is buying the policy. Term insurance plans are also affordable and easy-to-buy. While one buys a term insurance policy, insurance companies ask for certain documents. One has to comply with this process. But is income proof mandatory for term insurance? Just like any other insurance, when you buy a term plan, you must comply with the documentation process. The process, however, may vary from insurer to insurer. Check the list of documents generally most insurance companies required:

i) Proof of identity (any of these)

Driving licence

Passport

Voter ID card

PAN card

Aadhaar card

ID issued by a government body

ii) Proof of residence (any of these)

Recent utility bills

Passport

Ration card

Bank account statement

Letter from a recognised public authority

Aadhaar card

Driving license

iii) Medical reports

iv) Passport sized photographs

v) Income proof

Income proof essential

As per rules, income proof is mandatory for buying term insurance. You cannot purchase a term insurance plan without this document.

Income proof documents

The following documents are generally accepted as proof of income.

Salary slips

Bank account statement reflecting salary credit

Latest ITR

Form 16

Business account statement

Current account statement

Income certificate by your employer