Documents Required to Purchase a Life Insurance Plan
A Life Insurance Policy is one of the best investment policies. Read this blog to know about the various documents you would require to buy a life insurance plan.
A Life Insurance plan comes to the rescue of a family in the absence of the family’s sole earning member. So, if the breadwinner of a family or the insured meets an unfortunate demise, the nominee of the policy receives support in the form of financial assistance. However, to procure a Life Insurance Policy, you need to submit a number of documents to the insurer. So, having enough knowledge about these documents is important if you are planning to buy a life cover soon.
In this blog, we are talking about the various documents that are required to buy a Life Insurance policy.
List of documents needed to buy a Life Insurance Policy in India
So, here is a set of documents required for a life insurance policy that you need to submit while procuring a life cover policy:
- Proof of Address – You can prove your address through your DL or driving license, your Passport and your Aadhaar Card etc.
- Proof of Income – To give your income verification you need either your bank statement, your salary slip, or the receipt of your ITR filing through which you can facilitate income proof.
- Proof of Identity – In addition to the address proof, you need to submit a document to prove your identity. This you can do by submitting your PAN card, Passport or Driving License.
- Details of Medical Reports – Medical reports are required to be submitted if the insured has any medical condition. Further, some insurance providers ask the insured to go through some tests including blood tests etc. to analyze the present medical condition of the insured, which is also required to be submitted.
- Passport-size photographs – Along with the above papers, you also need to submit a particular number of photos of pass-port size to the insurer as required.
Once you have all the above documents in place, you can apply for a Life Insurance policy and buy the same. But make sure to check the different plans so that you could buy the best policy to suit the requirements of you and your family.
Let us discuss some of the various ways that could help you to buy the best life insurance policy from the several options available in the market.
Process to buy the most apt life insurance plan
Here are some points to consider to buy the best life insurance policy in India:
- Reason to buy life insurance (your requirement) – You need an insurance either to fulfill your family’s living standard and lifestyle. Or you can buy life insurance to insure your financial security in future (if you opt for a savings plan). So the first thing to notice is to understand the requirements of your life insurance. Depending on your need as well as your expenses, savings and the investment option you are looking at, you can go for a Life insurance, Term insurance or a plan with the option of investment.
- Be aware of the several options available – Life insurance policies allow you to choose between Pure Protection Policies and Savings Plans. So, it is important to consider these available options so that you can decide better as to which plan to opt for. Here, you must note that the pure protection plan allows your family financial coverage in case of your sudden demise. On the contrary, the savings plan facilitates the insured with maturity payback along with reimbursement for death. The term life insurance policies are normally considered as pure protection plans, while ULIPs and endowment plans are considered as savings plans.
- Go for the Online Life Insurance Plans – In case of online plans, not only you can buy the plan at your comfort, but you can avoid paying the agent commission as well. Further, if you use the insurance calculator, you can calculate the premium that you might have to pay for your policy.
- Use your wisdom while choosing the nominee of the plan – This is another important aspect of buying a life insurance policy. You must choose the nominee of the policy wisely. This way, you can make sure that the money received as sum assured lands in the right hand after your death. In the case of a married policyholder, the spouse becomes the nominee by default. However the option of adding children is also there.
- Do not give wrong information – You must understand that the final premium that you must pay is decided by considering several factors. Your profession, health condition and many other aspects are considered here. If you are fit and healthy, your insurer might not ask you to go through a medical test. However, if you have any medical condition or have a history of medical issues in the family, your insurer will change the premium rate as per the condition of your health. So, it is better to state the facts rather than giving any wrong information about your details.
Read More : Top 5 Reasons You Must Buy A Term Life Insurance Policy.
As stated above, you now know the different documents required to submit to your insurer if you want to buy a life insurance policy. So, you must keep these papers ready if you want to purchase your policy without any hassles.
With all the required life insurance policy details, you can ensure smooth purchase of a life insurance policy to secure the future of your family members, even when you are not there to take care of them.