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Last updated on: June 18, 2025

Can You Purchase Term Insurance Without Income Proof?

One of the most popular insurance plans is a term insurance plan. It is a fixed-length life insurance policy that provides a fixed lump sum amount at maturity or during the policy term to the policyholder or their dependents in case of his or her death. A valid proof of income is one of the most important documents for a term insurance policy.

You might wonder whether you can buy this plan without proof of income and what documents you require. The following sections detail all the related information on purchasing a term insurance policy.

Do insurance companies issue term insurance plans without proof of income?

Earlier, there were strict restrictions on providing proof of income before the issue of term insurance policies. However, many companies must ask for income proof to provide this plan. So, it completely depends on the insurance provider you choose.

Different companies understand the users’ needs and have focussed on the restrictions they face while purchasing term insurance plans. On the other hand, many insurance providers emphasise the provision of proof of income as there is a high risk involved in the process.

Reasons Why Income Proof Is Required for Term Insurance Issue

The following reasons highlight the importance of proof of income in term insurance purchases.

  • It assists the insurance provider in determining and assessing the capability and eligibility of the purchaser.
  • It is a useful means of finding the maximum coverage limit that can be provided to the insurance buyer. People in high-income groups receive better coverage because they are more financially sound and can pay premiums on time.
  • Income proof provides written evidence of the purchaser’s financial worth.
  • The proof gives high relief and confidence to the insurance company, indicating reduced risks and timely payment.
  • The buyer’s income levels will indicate the amount required by the policyholder’s dependents (in case of the former’s death) to meet their financial needs.
  • Financially sound people will likely get the policy at lower premium rates.
  • Lastly, income level or proof will safeguard you against being underinsured or overinsured and help you determine the most suitable plan for your family.

Necessary Documents to Submit for Term Insurance Plan

Apart from proof of income, you must submit many essential documents to buy term insurance online or offline. The following list highlights these required documents.

  • Identity Proof: A valid ID is one of the crucial documents needed to verify your identity. Acceptable ID proofs are voter ID cards, Aadhar cards, passports, driving licenses, and PAN cards. In some doubtful cases, you may need government attestation of your photograph and signature.
  • Medical Reports: Your recent and past medical reports will help insurance providers assess your health status and offer the most appropriate premium rate. The existence of any medical problem or illness will significantly impact the premium rates.
  • Address Proof: Insurance companies also validate your address provided to avoid any errors at maturity. Address proof documents include PAN card, utility bills, bank statements, passport, Aadhar card, etc. In addition to this proof, you must attach a recent passport-size photograph to complete the application process.
  • Age Proof: The insurance company will determine the premium rate based on your various metrics. Age is the most significant metric indicating eligibility for a term insurance plan. Valid age proof can be a birth certificate, college graduation degree, high school certificate, marriage certificate, or Aadhar card.
  • Financial Surrogates: Many companies ask for proof of additional income to add assurance from the buyers. People can use alternative documents if they do not have any valid income proof. These include credit card statements, bike RC, car RC, etc. However, you should ask the insurance providers if they accept these documents as valid proof of income.

Documents to be Issued as Valid Income Proof in India

You can submit several documents as valid proof of income. These documents should be recent and still valid.

  • Salary payslip of the preceding 3 months
  • CA certificate (not older than 2 months), if applicable
  • Previous 3 years’ Income Tax Return Statements
  • Current land records and income assessments
  • Recent Form 16
  • Bank statements highlighting income or salary of the last 6 months
  • Agricultural income certificate of last 1 year
  • Recent salary certificate from the employer
  • Last year’s Form 26 AS
  • Mandi receipts from the last 2 months

Term insurance policies are very popular nowadays. These standard life insurance plans provide wide coverage at low premium rates, especially for youngsters and disease-free people. Now that you know whether purchasing term insurance without proof of income is possible, the process will be much easier.

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Prem Anand
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