Is It Possible to Buy Term Insurance Without a Money Guarantee?

Gone are the days of worrying about the future of your family, especially if you don’t have one. Today, there are many things you can do to protect your family’s future. And one of them is a term insurance policy. Whether you’re in a high-risk job or you’re the sole earner in your family, or you just want to secure your family’s future in the event of your untimely death, term insurance can help. the best way for you.

Very good in this regard term insurance plans so it’s cheap. You can choose to pay monthly, quarterly, semi-annually, or annually. You just need to make sure that the information you are providing is correct and that you are filling out the form accordingly.

Documents required to purchase term insurance

When buying term insurance, just like any other insurance, you need to complete the paperwork. However, not all insurance companies ask for the same documents. Therefore, the type of documents may vary from one insurance company to another. Here are some of the documents that are often requested by insurance providers in India.

  • Identity proof, which can be driving license, passport, PAN card, government issued ID, voter ID card, and Aadhaar card
  • Proof of residence, such as a letter from a recognized government, recent currency, bank account, passport, credit card, Aadhaar card, driving license
  • Passport size photos
  • Medical reports
  • Proof of income like bank account statement showing salary arrears, pay slips, business account statement, ITR/Form 16, current account

Can term insurance be purchased without proof of income?

When you are planning to buy term insurance, you may come across people who will tell you that you can buy term insurance without guaranteeing money. You should know that this is completely wrong. The fact is that you need to provide proof of income to purchase term insurance because it is required.

Why is it important to provide proof of income?

When you pay regular premiums, it helps insurance companies to pay higher premiums, especially during times of crisis. And if the policy owner does not have regular income, it may cause them to not pay regularly, and this may cause the policy to fail.

Here are some of the reasons why documents, especially proof of income are verified by the underwriting department of insurance companies.

  • Proof of income helps insurers determine the guaranteed amount that can be paid to the person purchasing the policy. This also helps in deciding the cost of the plan.
  • When you provide proof of income, the insurance company will find out if you can pay the amount without fail.
  • If there is a discrepancy in the tax information, it can have an impact on the insurance cover as it can be canceled and even your claim can be rejected. However, when you provide proof of income, such things may not happen.

Why is it a good idea to buy term insurance?

Buying term insurance may not be a bad idea. It can save your family in difficult times. Why? Read on to find out why.

Affordable fees

The premiums you pay for the insurance period are cheaper compared to many other types of insurance. Also, compared to the salary, the amount guaranteed under these policies is very high.

Credit protection

When you buy term insurance, it gives your family the type of financial protection they need at that time. Even if your family has debt, they can pay it off with their income.

The need for serious illness

Apart from providing financial support on the death of the policy holder, the insured can also get cover for critical illness. Since it is extra, you have to pay some additional fees. Critical illness cover will help you get financial help if you are diagnosed with diseases like cancer, kidney failure, heart attack, etc.

Tax benefit

Under Section 80C of the Indian Income Tax Act, you are eligible for tax benefits to the extent of more than INR 1.5 lakh in a financial year.

Now if you want to buy the best long term insurance, you can go to a reliable website and compare as many insurance plans as you want. This will help you get more information and make your decision based on your preferences.

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