JOIN USDocuments required to buy term insurance
Life is uncertain and full of surprises. While some of those surprises may come as a blessing for you and your family, others may lead to an emotional and financial setback. And no setback is bigger than loss of the sole breadwinner of the family as it becomes more than just an emotional setback to the family and leaves them helpless on the financial front as well. In times like the present, where a small virus has already claimed almost 2.5 million lives across the world, while infecting another 110 million; many families have had to go through this setback. [1] So, it is only natural for you to think of financial protection for your family if something happens to you and you are no longer present to take care of them. A term life insurance plan is what you may consider to achieve that goal.
A term insurance in simple words is a type of life insurance policy that provides life cover for a certain period on payment of premium. In this scheme, if the policyholder dies during the policy term, his/her nominees/beneficiaries receive the entire sum assured as per the policy terms. In the event of the policyholder surviving the policy term and hence no claim being made, the policy lapses at the end of the policy term. The premium paid is typically not repaid in basic term insurance policies. However, these days return of premium term insurance policies are also available.
Preferred by youth, borrowers of large loans
A term insurance plan is more advantageous for younger people, say in the bracket of 20-40 years. If taken at an early age and for a longer tenure, the premium is relatively lower. It is also a good option for those who have availed a large loan that could leave their dependents in a lurch in case of their untimely demise. In such a case, the individual can buy a term insurance policy covering the outstanding loan amount and for the tenure of the loan to cover the risk. In case of the demise of the insured during the loan tenure, the family will not be suddenly burdened with repaying the loan as they can use the payout from the insurance policy to repay the loan.
How to buy a term plan
Buying a term insurance cover is relatively easy. Nowadays, it can be bought online, with just a few clicks.
The term insurance premium depends on various factors such as age, occupation, location, plan opted for, medical history, policy term etc. The life cover amount and duration of premium payment are relevant too. Further, one can also choose some rider add-ons such as critical illness benefit, waiver of premium, accident cover etc. This involves an additional premium. In case of professions that involve higher risk, the premium could be higher.
To buy a term plan, for instance from Bajaj Allianz Life Insurance, all you need to do is go to their website, Select a product of choice and go to the buy journey to fill in your personal details, select the sum assured and the policy term, upload the necessary documents and make the payment as per process specified therein.. Bajaj Allianz Life Insurance also gives you the flexibility to customize your term policy by choosing from different additional features called riders/add-on covers. For example, you could go with a critical illness cover wherein if you are diagnosed with any of the listed critical illnesses during the policy period, you will be eligible to get a lump sum payment. You could also opt for an Accidental Death Benefit cover and many such riders.
Documents needed to buy term insurance
The documentation required for buying a term plan is easy, quick and hassle-free. In case of you want to buy an online term plan, follow the process as mentioned herein above. The required documents differ from insurer to insurer and usually include:
● Age proof: Since most term plans have age limit as one of the eligibility criteria, the insurer would need a document that can serve as proof of age. Moreover, age is also important for determination of premium as it has a direct bearing on the amount. You could use any document from the following: passport, birth certificate, driver’s license, voter ID, PAN, school/college leaving certificate.
● Address proof: You would also need an official proof of your permanent address where the physical copy of your policy documents, and any other communication material in future would be sent. For proof of address, you can use passport, electricity bill, voter ID, any utility bill, telephone bill or bank statement.
● Proof of identity: Since the term insurance plan is supposed to cover the policyholder in the event of death, it is necessary to establish his/her identity. For this purpose, one can use any official document with their photo on it like passport, driver’s license, voter ID, PAN etc.
● Proof of income: An important point to note is that the sum assured that you opt for often depends on your annual income. So in order to ensure your chosen sum assured fulfils their criteria, and to ensure you would be able to make premium payments, insurers usually ask for a proof of income. You could use Form 16, salary slip, employer’s certificate or your income tax return as the income proof document.
● Other documents: Apart from these, you would also be required to furnish a passport size photo. The insurer may also ask you to submit your past medical records in certain cases. Moreover, details of the nominee who will get the insurance payout should also be furnished. It is important to furnish full names and ensure all disclosures are accurate.
It is crucial that you honestly and accurately declare existing illnesses, family health history and any other medical conditions while buying the policy. If the information you share is found to be misleading or inaccurate, the insurance company can deny the claim at a later stage. If you are looking for a convenient and hassle-free option, you could go with Bajaj Allianz Life Smart Protect Goal, A Non linked, non-participating, pure Life Term Insurance Plan that comes with different variants that can help you secure yourself and your loved ones. Some of the benefits include:
● Rs. 1 Crore Cover @ Rs. 18 per day2
● 55 critical illnesses covered1
● Child education extra cover1
● Return of premium option1
Source:
[1] https://www.worldometers.info/coronavirus/
2Above illustration is considering Male aged 25 years | Non-Smoker | Life Cover Variant | Policy term (PT)– 30 years | Premium Payment Term (PPT) – 30 years | Sum Assured opted is Rs. 1,00,00,000 | Online Channel | Annual Premium Payment Mode | Premium shown above is exclusive of Goods & Service Tax/any other applicable tax levied, subject to changes in tax laws, and any extra premium and is for illustrative purpose only.
1Product feature/benefit mentioned above are dependent on variant chosen
BJAZ-WEB-IC-00293/21