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Can I Buy A Term Insurance With Income Proof?

Published On Sep 07, 2021 6:00 PM By InsuranceDekho

Term insurance plans are affordable and easy to buy. The insurance company asks for some personal details and documents when you apply for term life insurance. One such detail is the declaration of your income. Insurance companies ask for proof of income before approving your insurance application. However, there is much confusion regarding this.

Can You Purchase A Term Insurance Plan Without Submitting Income Proof?

No, you cannot purchase a term insurance plan without income proof. It is essential, as it helps the insurance company decide the sum assured and the risk involved in insuring the applicant.

What Income Documents Do You Need To Submit For A Term Insurance Plan?

You need to submit the correct documents, as getting term insurance without income proof is not possible. The following documents are generally accepted as proof of income.

  • Salary slips of the last three months
  • Latest Income tax returns of the previous two years
  • Income certificate by your employer
  • Form 16
  • Bank statement of the previous six months

Why Is Income Proof Necessary?

The insurance companies require income proof of the applicant for financial underwriting. Insurers scrutinize these documents for the following reasons.

  • Income proofs help the insurance company decide on the sum assured or the total life coverage that can be offered to the applicant. It also helps them determine the premium rates for the policy.
  • The insurance company gauges the risk and your ability to pay the premiums on time based on the documents that you submit as proof of income.
  • It avoids the possibility of over-insurance, wherein the insured has bought coverage more than the actual cash value. This might be a hazard for the insurance company and can also result in the denial of an insurance claim.
  • In case of a discrepancy in the income declaration, the policy can lapse, and an insurance claim might be denied. Submitting income proof while purchasing the term insurance protects you against this.


Getting term insurance plans without income proof is impossible as the income of the applicant is one of the primary criteria on which the company decides whether to offer the insurance or not. Hence, you must be prepared with proof of income before you apply for term insurance.

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Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.    

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