Mandates for Buying A Term Insurance Plan

Updated On Aug 22, 2022

Perks of Term Insurance Plans
Mandates Required For Buying A Term Insurance Plan
Conclusion

Term life insurance plans are one of the most popular types of insurance policies. They are often used to protect against the financial burden of an unexpected death.

In a term life insurance, you agree to pay premiums, and the insurer agrees to pay a death benefit if you die during the term of the policy. The term is typically 10, 20, or 30 years.

If you have a family or other dependents, a term life insurance policy can help ensure that they are taken care of financially if you die unexpectedly. The death benefit can be used to cover expenses like mortgage payments, education costs, or everyday living expenses.

Perks of Term Insurance Plans

Term insurance plans are one of the most popular types of insurance policies. They offer many benefits and can be tailored to fit your needs. Here are some of the perks of term insurance plans:

They are typically less expensive than other types of insurance.
They offer death benefits that can help your loved ones financially if you die unexpectedly.
The coverage can be tailored to fit your specific needs, such as length of coverage and amount of coverage.
Some term insurance plans offer additional benefits, such as living benefits or accelerated death benefits.
Term insurance is generally easy to qualify for, even if you have health issues.
You can usually convert a term policy into a permanent policy if your needs change in the future.

Mandates Required For Buying A Term Insurance Plan

When it comes to buying a term insurance plan, there are certain mandates that you will need to adhere to to ensure that the process goes smoothly. Here are some of the key documents that you will need to have in order:

Proof of identity: This can be in the form of a valid passport or driver's license or other government-issued ID. You'll need this to prove your identity and age. Aadhar card or PAN card will also be accepted as they provide your nationality and age identification.
Proof of address: You will need to provide a recent utility bill or bank statement as proof of your current address. You can attach your Aadhar card as address proof, it will do the work for you.
Health records: The insurer will likely require you to undergo a medical examination before approving coverage, so having your health records on hand can speed up the process. The insurer will want to know about any existing health conditions that could affect your policy premiums or coverage.
Employment records: The insurer will want to see evidence of your current employment situation and income levels to determine your premium rates. Therefore, you can provide them with your monthly salary slips or other details that provide a clear picture of your salary status.
Your most recent tax return: The insurer will use this to verify your income and calculate how much coverage you can afford. Furthermore, the insurer will give you options to choose your premiums accordingly. This way it becomes easier to manage your premium payouts.
A list of your current debts and financial obligations: This will help the insurer determine how much life insurance you need to protect your loved ones financially. You should be honest while letting your insurer know about your previous debts. This helps the insurer to set an affordable premium value for you to pay.

Conclusion

Buying a term life insurance plan is the first step toward securing the lives of your loved ones. Considering all the benefits of term insurance plans it is a wise decision to get one. You can buy term life insurance easily if you have a hold of all the documents mentioned above.