In the present world of uncertainties, securing yourself from future mishaps is one of the most important tasks. Among them is securing your and your family’s financial situation for the future using different financial products available in the market. One such product is term life insurance, which is simple yet effective for putting your money in. The section below provides detailed insight into the essential documents required to buy Term Insurance, especially the financial ones and other related aspects of the policy.
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Keep all the essential documents listed below to experience a smooth and hassle-free term insurance buying process. Regardless of your chosen insurer, these documents are required by almost most providers.
Medical Records: Insurers often require medical records or a medical examination for applicants over a certain age, commonly 45 years or older. However, specific requirements can vary between insurers.
Having a financial backup to protect your family's well-being in your absence is certainly essential. The primary purpose of such a plan is to offer financial protection to the policyholder. Other than that, below are some benefits of buying a term life insurance compared to other types.
One of the most significant advantages of choosing term insurance is receiving high-value life coverage at an affordable price. For instance, if you choose a term insurance plan of ₹1 crore, you might have to pay a monthly premium of approximately ₹500 to ₹1,200, depending on the specific plan and factors such as your age, gender, income, etc. It is best to get quotes from multiple insurers for accurate and personalised premiums.
Usually, most insurers in India offer flexible policy coverage ranging between 5 to 40 years. Easily find the best plan that fits your budget, matches your long-term financial goals and ensures protection for your loved ones over an extended period.
Common riders such as accidental death, disability income, and critical illness coverage can often be added to term insurance plans. These riders offer your family extra benefits beyond the standard term policy coverage. They provide financial protection in various situations.
For example, in the event that an accident leaves you with a serious handicap, a disability income rider can offer financial support to help cover income loss and medical expenses.
To file a term life insurance claim, you will need to gather and submit the following documents:
This crucial record attests to the insured person's demise. Obtain it from the hospital or local municipal authority where the death happened.
If the nominee or beneficiary is not the spouse, proof of relationship or birth certificate for children may be required.
The term life insurance policy in copy form is needed. Details like the coverage amount and beneficiary details are included in this paper.
Provide your bank account information for the insurance payout, typically done through a cancelled cheque or a bank statement.
You must provide valid identification proof that includes voter ID, Aadhaar card, and passport.
A police report can be required if the death happened oddly or suspiciously.
If a medical condition causes the death, the insurance company may ask for medical records or reports about the disease.
The beneficiary must provide proof of their identity.
Additional documents may be requested depending on the specifics of the claim.
Traditionally, term insurance was sold offline, but now, with the predominant digital era, insurers are offering online insurance buying options in India. Follow the steps listed below to get an insight into how to buy term insurance online.
Surf through your insurer’s official website or mobile application (if any)
You have to choose and select the plan type.
Answer a few questions to determine eligibility and premium amount.
You have to pay the premium online.
That is it! You will receive your policy on the registered mail ID. Alternatively, you can easily download it from your insurer’s mobile application (if any).
Term life insurance policies are there to provide extensive financial security to your family members in your absence. So, to ensure optimal protection, you must choose a plan after proper research and comparison. Below are the different types of term insurance available in India to choose from as per your requirements and budget:
It is the basic version of the term insurance plan in India. Under this plan, you have to pay a fixed premium every year to avail of the benefits. If any unfortunate incident happens during the policy tenure, your family can file a claim to receive the lump sum amount of the policy.
The increasing term insurance witnesses the sum insured to increase gradually over the policy tenure to keep up with inflation. It increases at a certain percentage and helps you combat the rising cost of living.
If you have an existing loan, such as a home loan or other big debt, this policy can help you. It has a specific design to cater for your financial obligations. In addition, the coverage amount decreases once you clear your debts as the financial responsibilities also decrease.
Under Return of Premium Term Insurance, you will receive back the premiums you have paid once you outlive the policy tenure. It acts as a saving component and enables you to generate wealth once you outlive the tenure.
It is a flexible-term insurance policy that allows you to convert basic term insurance into more extensive life insurance coverage, such as an endowment policy or whole life plan. This policy is beneficial if you want to evolve your insurance benefits over time.
With term insurance for riders, you can customise the policy according to your specific life insurance requirements. It gives you the advantage of adding riders, such as accidental death, critical illness or disability, to receive extra protection for specific situations.
Under this term insurance plan, an employer can offer this to their employees as a part of the employee benefits package. The group term insurance plan covers a group of individuals under a single plan and is comparatively more affordable than single life insurance plans.
It is ideal for couples who want to avail themselves of life insurance benefits under one plan. Under the plan, the surviving spouse will receive the benefit in case of a demise. It is the ideal plan for you when you want to secure your family.
If you are a single parent, you can avail the term insurance for single parents. It has a specific design for single parents to ensure their child's financial requirements are met in case of any mishap with the policyholder.
ACKO, the digital-first insurance company in India, offers a unique life insurance plan, the ACKO Life Flexi Term Plan. This highly flexible plan acts as financial security for your loved ones. Here are a few reasons why you should get an ACKO Life Flexi Term Plan:
You can follow these simple steps to buy an ACKO Life Flexi Plan online:
Visit the ACKO mobile application or the ACKO website.
Log in to your account using the credentials and select the plan according to your life insurance requirements.
Answer a few questions to determine your life insurance eligibility and the premium amount.
Once eligible for the preferred plan, you can pay the premium amount online.
After paying the premium, you can review the policy that you will receive through email or download it from the application.
Please note that it is a generic process and may differ depending on your preferred plan and other details.
Financial documents are essential for both buying term insurance and submitting a claim. You may expedite the procedure and have a more seamless process by being aware of the necessary paperwork and making sure it is accurate. You must remember that purchasing term insurance is an effective investment to ensure your loved ones' financial security.
Below are some important questions about term insurance and the essential documents required to buy term insurance.
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