Can I Purchase Term Insurance Without Income Proof?

Table of Content

1. Is Income Proof Mandatory for Term Insurance?

2. Documents Required to Buy a Term Plan Without Income Proof in India

3. Documents Apart from Income Proof Accepted as a Valid Income Source

4. Why Is Income Proof Needed for Term Insurance?

5. Summary

6. FAQs on Term Insurance Comparison

When purchasing term insurance in India, insurers ask for valid income proof to assess the applicant’s financial stability and determine an appropriate sum assured. These documents help insurers ensure that they align the coverage amount and premium with the applicant's earning capacity. Commonly accepted income proofs include:

1. Salary Slips

Usually, the latest 3 to 6 months’ salary slips are required for salaried individuals. They show regular income, employment status, and deductions, helping insurers assess consistent earning ability.

2. Form 16

Issued by employers, Form 16 provides a summary of salary earned and tax deducted during the financial year. It validates declared income and tax compliance.

3. Income Tax Returns (ITR)

Self-employed professionals, business owners, and freelancers typically submit ITRs for the last 2–3 years. ITRs give a clear picture of annual income, business stability, and long-term earning trends.

4. Bank Statements

Banks accept recent bank statements (usually 6 months) to verify income inflow, savings patterns, and financial discipline. They support other income documents by confirming actual cash flow.

5. Audited Financial Statements

For business owners, lenders may require profit and loss statements and balance sheets to assess business income and financial health.

Note: These documents help insurers assess eligibility, decide the right sum assured, and confirm the applicant can afford premiums. For those opting for term insurance without income proof, insurers rely on alternative checks to ensure basic eligibility.

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Is Income Proof Mandatory for Term Insurance?

Yes, income proof is generally mandatory when buying term insurance in India. Insurers require it to assess your financial capacity, decide the sum assured, and ensure that the premium is affordable over the policy term. However, there are a few exceptions where you can buy a term plan without income proof.

• Low Sum Assured Plans

Some insurers may waive income proof for term insurance policies with a lower coverage amount, especially if the risk exposure is limited.

• Employer-Linked or Group Policies

Employers often do not require individual income documents for group term insurance, as they base coverage on employment rather than personal income.

• No Medical Exam / Simplified Issue Plans

Certain simplified plans may relax income proof requirements, though insurers usually restrict coverage amounts and may charge higher premiums.

Documents Required to Buy a Term Plan Without Income Proof in India

When buying a term insurance without income proof in India, insurers still require certain basic documents to verify your identity, age, and residency. These documents help insurer’s complete KYC checks and assess basic eligibility, even in the absence of financial records. Here are the documents required:

1. Aadhaar Card

Serves as both identity and address proof. It helps insurers verify personal details quickly through digital KYC. But this is not a Mandatory document.

2. PAN Card

Used to confirm identity and ensure tax compliance. It is mandatory for most financial transactions in India.

3. Voter ID

Acts as a valid government-issued photo ID and address proof, especially useful for individuals without Aadhaar-based KYC.

4. Passport

Accepted as proof of identity, age, and address. It is commonly used when additional verification is needed.

5. Driving License

Works as both identity and address proof and is widely accepted by insurers.

NOTE: The above all aren’t mandatory documents customer can provide anyone as per insurers requirements. Click here to check the complete list of the acceptable documents.

6. Age Proof Documents

A birth certificate, school leaving certificate, or passport may be required to verify age eligibility.

These documents are sufficient because they allow insurers to complete KYC, verify age limits, and assess basic risk factors without evaluating income.

Note: These alternatives make term insurance more accessible for individuals like students, homemakers, or freelancers who may not have formal income proof.

Documents Apart from Income Proof Accepted as a Valid Income Source

When standard income documents are unavailable, insurers might assess financial capacity using alternative records to form a broad understanding of an individual’s financial position. Such documents might help you to provide a general view of financial standing and continuity, allowing applications to be evaluated even without standard income proof.

Why Is Income Proof Needed for Term Insurance?

Income proof is needed for term insurance to help insurers assess risk and set fair premiums. It shows whether you can afford to pay premiums regularly over the policy term.

For example, someone earning ₹10 lakh annually can comfortably manage a higher premium than someone earning ₹3 lakh. Income details also help insurers decide the right sum assured, ensuring coverage matches financial capacity. By verifying income or financial strength, insurers reduce the risk of policy lapses due to non-payment and price premiums accurately.

Summary

Income proof is generally required for term insurance to assess financial stability, determine suitable coverage, and set premiums. However, term insurance without income proof may be available using alternatives documents if asked by the insurer. These options make term insurance more accessible for individuals without formal income while still helping insurers manage risk effectively.

Enjoy flexible eligibility, transparent processes, and strong claim support. Get your HDFC Life term insurance today and protect your loved ones with confidence.

FAQs on Term Insurance without Income Proof

1. Can I buy term insurance without Income Proof?

Buying a term insurance plans without income proof, though it depends on the insurer whether to offer or not. Many companies offer simplified or no-document plans that only require basic identity and address verification. These plans provide quick approval and coverage, making them ideal for individuals who cannot submit salary slips, ITRs, or other formal income documents.

2. Do self-employed individuals need to submit different income proof for term insurance?

Yes, self-employed applicants typically submit documents like ITRs, bank statements, or GST and business registration certificates instead of salary slips. These proofs help insurers verify consistent income and financial stability. By providing these alternative documents, self-employed individuals can apply for higher coverage amounts without traditional salaried income proof.

3. How can I get a term plan without income proof?

You can get term life insurance without income proof by opting for simplified or no-medical exam policies. Insurers usually require basic KYC documents like Aadhaar, PAN, or voter ID. Some plans allow lower sum assured limits without income proof, providing fast approval and essential life coverage for those with non-traditional or irregular income sources.

4. Is there a minimum income requirement to get a term plan?

Most insurers do not set a strict minimum income but evaluate your ability to pay premiums consistently. They use income proof or alternative financial documents to decide the sum assured and premium. Plans with lower coverage often waive formal income proof, making term insurance accessible even for students, homemakers, or freelancers with limited or irregular earnings.

5. Can we take term insurance for a non-salaried person?

Yes, non-salaried individuals like freelancers, business owners, or homemakers can buy term insurance. Insurers accept alternative proofs such as ITRs, bank statements, or investment and property documents to assess financial stability. Simplified or low sum assured plans further allow non-salaried applicants to get coverage without formal income documents, ensuring financial protection is accessible.