Eligibility Criteria for Buying Term Insurance in India
Everybody does their best to save and invest for the future. Unfortunately, very few think about how they can secure their family’s finances regardless of what happens. Term policies serve as the ideal way to protect the financial future of your loved ones. Many people believe a few misconceptions about who can purchase a plan and what criteria they must meet. Let’s understand the eligibility criteria for term plans.
What is Term Insurance?
A term insurance plan offers life coverage to an individual for a specific period. These policies are pure life insurance products as they do not provide any maturity benefit or capital growth. In some cases, policyholders can opt to get all their premiums returned once they outlive the tenure. Individuals can enjoy high sum assured amounts for affordable premiums with term plans.
Who is eligible to purchase a Term Plan?
To prove that you are eligible to purchase the best term plan in India, you have to submit the following documents to your insurance provider:
Acceptable Identity Proofs and Residence Proofs:
|Sr. No||Documents||Identity Proofs||Address Proofs|
|2||Voter’s Identity Card issued by Election Commission of India||Y||Y|
|3||Permanent Driving License||Y||Y|
|5||Central KYC Identifier (can be accepted, if the downloaded documents are from the list of Officially Valid Documents (OVD) reflecting across Sr. No. 1 to 4 and there is no change in the address basis the document downloaded from Centralized KYC Registry (CKYCR) database as mentioned on the proposal form)||Y||Y|
Please check detailed List of documents/KYC Proofs here - https://www.hdfclife.com/customer-service/list-of-kyc-proofs
Who Should Purchase Term Insurance?
Let’s look at a few eligible individuals who should purchase term policies to safeguard their family’s finances:
Individuals who are just joining the workforce can purchase a policy to enjoy tax benefits and protect their parents from potential financial liabilities.
When you get married, you now have somebody to rely on and somebody who relies on you. Regardless of whether you’re a double-income household or not, it’s a good idea to purchase term insurance for both partners. The policy gives your loved ones a financial safety net during a truly difficult time.
Growing your family brings more responsibilities. You want to provide your child with every opportunity to fulfil their dreams. Paying for their education, hobbies and marriage all require significant planning. You should also consider getting a term plan for you and your partner to ensure financial stability for your family.
You can still purchase term insurance as long as you’re under 65. Many older people who are retiring avoid purchasing a plan as they consider it an unnecessary expense. However, the payout from such a policy can enable your spouse to live their golden years on their own terms.
As you can clearly see, there’s never a bad or wrong time to purchase insurance to look after your loved ones.
Term policies help you protect your family’s finances. They offer pocket-friendly life insurance, enabling you to leave your family without any debt. The payout from such plans can help your family replace lost income, pay off debts and maintain their standard of living. When purchasing a policy, you can choose how you want your beneficiary to receive the settlement. If you purchased a plan to replace lost income, opting for a staggered monthly payout would be ideal. On the other hand, if your main objective is to pay off debts, asking for a single lump sum payout can help your loved ones overcome their debt quickly.
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HDFC Life Insurance Company Limited. CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101.
Registered Office: Lodha Excelus, 13th Floor, Apollo Mills Compound, N.M. Joshi Marg, Mahalaxmi, Mumbai 400 011. Email: [email protected], Tel No: 1800-266-9777 (10 am to 7 pm). The name/letters “HDFC” in the name/logo of the company belongs to Housing Development Finance Corporation Limited (“HDFC Limited”) and is used by HDFC Life under an agreement entered into with HDFC Limited.
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