The growing awareness and knowledge amongst the masses with respect to financial planning is leading them to invest their money in secured investment avenues. One such plan which stands out amongst several other options is the term insurance or term plan.
A term insurance policy is a life insurance policy in which the policyholder is given life protection for a predetermined period, i.e., the policy term for which the policyholder has insured the sum amount. The policyholder can pay the premium amount monthly or yearly. This makes it an affordable investment promising a pure life cover for one’s family members. However, there is no maturity benefit in this plan.
But, before applying for term insurance, it is advised to research and study the different plans offered by different term insurance companies. For example, Tata AIA Life Insurance Company and many others. But one aspect which needs to be considered is the eligibility criteria. It is essential to meet the term plan eligibility criteria to get a term insurance policy. So, what are the eligibility criteria for purchasing a term insurance plan? Read more and learn about them in detail.
Who Can Apply for a Term Insurance Plan?
The term plan can be easily opted by young individuals, entrepreneurs, married couples, young parents, working women and retired individuals. There is no limitation as to who can apply for a term plan. However, there are set criteria which should be met.
Eligibility Criteria for Buying a Term Insurance Policy
The term plans have set eligibility criteria. It is essential for the applicant to adhere to and meet all the eligibility criteria to get their term insurance plan sanctioned. In case the applicant fails to meet the criteria, then the insurance service provider or the insurer has the right to terminate the allocation of the term plan to the applicant.
There are several term plans across different insurance service providers who have set eligibility criteria. For example, the Sampoorna Raksha Supreme (SRS) term insurance plan of Tata AIA life insurance company has a minimum age entry of 18 years and a maximum age entry of 65 years. Similarly, the criteria differ across policies. Thus, we have listed term insurance plan eligibility which one should adhere to buy a term insurance plan:
- Age Criteria
Applicants applying for a term plan should be minimum of 18 years and a maximum of 65 years of age. The premium paid will depend upon the age when you are applying for it.
- Habit of Smoking
The habit of smoking highly impacts the premium amount. If the person is a smoker, he is entitled to pay a higher premium amount because they are more prone to health problems.
- Submission of Documents
It is essential for the applicant to submit all the required documents for getting a term plan. The documents that are required are an Income Tax receipt, Salary slip, Bank Statement (past 6 months), Aadhar card and Pan Card. Apart from this, the insurer can request any other document depending upon the terms and policies. The applicant should ensure to arrange all the documents and submit them to the insurer.
- Medical examinations
The insurers request the applicant to go for a medical test or examination and give it in writing. This will help them in understanding the health of the person, which further decides the sum that can be insured and the premium amount. Hence, the person should be honest and fill all the required sections.
The person should be of Indian nationality at the time of purchasing the policy. However, even if the person moves abroad for work or education, then also the eligibility of the term plan will remain the same.
- Income specifications
The applicant has to submit their income slips, bank statements and bank account details in order to decide and finalise the sum to be insured as well as the payable premium amount.
Now that the readers are well aware of the eligibility criteria, buying a term plan would no more be an issue for anyone. Just adhere to these criteria and get your term plan sanctioned.