Eligibility Criteria for Buying Term Insurance in India

Age
Most insurance companies offer term plans to individuals between 18 and 65. So, if you fall within this age group, you can easily purchase a term insurance policy. However, some insurers also allow senior citizens over 65 to buy term plans. For them, the maximum age to which coverage is provided could be 70-75 or even 99 in some instances.
For example, the ACKO Life Flexi Term Plan is one such plan in the market that provides coverage until age 70. Minimum age entry: 18 years Maximum age entry: 65 years.
 

Income
Term plans are available to salaried, self-employed, or even unemployed people. However, you need to have a steady source of income to pay the premiums on time. The policy can lapse if you have difficulty paying premiums due to financial constraints.
 

Medical Reports
When applying for a term insurance policy, the insurance company will ask you to submit previous medical reports and undergo specific medical tests. This is done to accurately assess your health status and determine the extent of risk you pose. Based on your medical reports, insurers calculate the term insurance premiums to be charged.
 

Lifestyle Habits and Their Impact on Eligibility
Lifestyle habits play a significant role in determining eligibility for term insurance in India. Key factors include smoking, alcohol consumption, and participation in hazardous activities. 

Occupation and Profession Considerations
The applicant's occupation is another critical factor in determining term insurance eligibility and premium rates. Some occupations inherently involve higher risks, affecting the terms of coverage. High-risk jobs, such as those of firefighters, pilots, construction workers, and miners, expose individuals to dangerous environments, increasing the likelihood of injury or death. Consequently, insurers might charge higher premiums or impose stricter coverage conditions for these occupations.
 

Eligibility for Riders and Add-on Coverage
Riders are benefits that can be added to a term insurance policy to enhance coverage. Everyday riders include critical illness coverage, accidental death benefits, disability riders, and waivers of premiums. Riders are typically added at the beginning of the policy. However, many insurers now allow riders to be added on policy anniversaries, providing flexibility in policy customisation. Adding a rider usually involves paying an additional premium, calculated based on the rider's specific risk and the insured's profile.
 

Gender-Based Eligibility Criteria
Gender can influence term insurance eligibility and premium rates due to differences in life expectancy and health risk profiles between men and women. Generally, women tend to have a higher life expectancy than men, leading to lower premium rates for women as they represent a lower risk to insurers. Gender-specific health risks are also considered; for instance, women might have lower premiums for specific health conditions but may face higher rates for others.

Aadhaar card

Birth certificate

Passport

Voter ID card

Aadhaar card

PAN card

Voter ID card

Passport

Driving License

Aadhaar card

Voter ID card

Electricity/water bill

Ration card

Rental agreement

Age: You must be at least 18 to buy the term plan from ACKO. The maximum age until which you can buy this policy is 65 years. However, the coverage continues till the age of 70 years.

Education: ACKO only requires your basic education details, such as your highest qualification and college/university name. 

Occupation: Your occupation determines premiums and eligibility. High-risk jobs may require higher premiums or have exclusions. 

Income: You need a stable income source to pay insurance premiums. Your income level also guides the recommended coverage amount based on current loans, dependants and future financial responsibilities.

Other Factors: Besides the above, ACKO considers your health, lifestyle habits, hobbies, etc., when deciding eligibility.