documents required for buying a life insurance policy

When purchasing a life insurance policy in India, you’ll need to provide certain documents to the insurer to complete the process. These documents help the insurer verify your identity, address, and health status. Here’s a detailed list of the typical documents required:

1. Identity Proof

• Examples:
  • Aadhaar card
  • Passport
  • Voter ID card
  • Driver's license
  • PAN card
• Purpose: This verifies your identity.

2. Address Proof

• Examples:
  • Aadhaar card
  • Passport
  • Utility bills (electricity, water, gas) with your name and address
  • Ration card
  • Bank statements with your address
• Purpose: To confirm your permanent address.

3. Photographs

• Examples:
  • Passport-sized photographs (usually 2-3)
• Purpose: Required for the policy documents.

4. Age Proof

• Examples:
  • Birth certificate
  • Passport
  • PAN card
  • School leaving certificate
• Purpose: To confirm your age for accurate premium calculation.

5. Income Proof (for higher sum assured policies)

• Examples:
  • Salary slips (for salaried individuals)
  • Income tax returns (ITR)
  • Bank statements showing salary deposits
  • Business profit and loss statements (for self-employed individuals)
• Purpose: To assess your income level, especially for policies with a high sum assured.

6. Medical Reports/Health Declaration

• Examples:
  • Medical test reports (if required by the insurer based on age or sum assured)
  • Health declaration form (provided by the insurer)
• Purpose: To evaluate your health status, which helps the insurer assess risk and determine the premiums.

7. Occupation Details

• Purpose: Some insurers require details of your occupation, especially if you work in a high-risk job (e.g., aviation, mining, etc.).

8. Nominee Details

• Examples:
  • Name and relationship of the person who will be the nominee
  • Nominee’s address proof (in some cases)
• Purpose: To designate who will receive the death benefit in case of your demise.

9. KYC (Know Your Customer) Documents

• Examples:
  • If you are buying the policy online, an e-KYC process may be followed using your Aadhaar card and PAN card.
• Purpose: This is required as part of the financial regulations to ensure the legitimacy of the transaction.

10. Bank Account Details (for Premium Payments)

• Examples:
  • Cancelled cheque
  • Bank account statement
• Purpose: To facilitate easy payment of premiums, especially for auto-debit.

Additional Documents for Special Cases:

• For Joint Life Policies: Identity and address proof of both policyholders.
• For Minors: A guardian's identity and age proof if the minor is the policyholder.
• For Critical Illness Riders or Accidental Death Benefit: Any prior medical records, if applicable.

Summary

When buying life insurance in India, you'll need a combination of identity proof, address proof, age proof, income proof, and medical details. The insurer may request additional documents based on the type of policy and coverage amount.