Term Insurance Eligibility

At times of economic and financial uncertainty and distress, it is a great reprieve to have a secure and financial net that helps you cover your unforeseen expenses. The most important investment/savings you can make to fulfill all your life goals is buying a term insurance plan. However, it is important to know what is term insurance and how it works? Also, it is suggested to be aware of the standards for term insurance eligibility as it makes the procedure of availing of the term plan of your selection more convenient and easier.

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Term Insurance Eligibility Criteria 

A term plan is a pocket-friendly, simple, and convenient form of life insurance that offers a pre-specified death benefit to the nominees/ beneficiaries of the policyholder at the time of his/her demise during the policy tenure. In this, one can get a large amount of life cover at a comparatively low rate of premium.

However, maturity benefits are not available under this scheme. This is the reason, payments of premium are low, pocket-friendly, and cost-effective. Like any other insurance product, term insurance has the eligibility parameters for a minimum and maximum entry age. Let’s discuss these criteria in detail for your smooth understanding.

Before buying a term plan of your selection, it is idyllic to confirm that you meet the criteria of eligibility for the chosen plan. Term insurance eligibility criteria vary across insurers and plans, but there are some basic parameters same for all the policies: 

  • The insurance buyer or policyholder of the term plan must be a citizen of India. PIOs and NRI can also capitalize on term policies obtainable by life insurers in India. 

  • It is obligatory for most insurance companies that the policyholder undergoes a health test before availing term insurance plan. This aids the insurance company to know the medical situations and the risks associated and also determines the amount of premium the life assured will be probable to pay. 

  • Usually, the premiums of a term insurance plan for smokers are higher in comparison to non-smokers because smoking poses a high risk of health to an individual. 

  • The life assured must always submit the requested documents to fill the application for term insurance. 

  • One can purchase a term insurance plan between 18 years of age to 65 years. It is critical to determine term plans based on different life stages. The financial objectives changes with the advancement in age, and that will need variation in the coverage accordingly. 

Minimum Entry Age  18 years 
Maximum Entry Age  60 years (confirm with the insurance company if they provide a term plan for senior citizens if you are more than 60 years)
Maximum Cover for Term Insurance  75 years 

Who are Eligible to Buy Term Insurance Plans? 

As mentioned above, the term insurance eligibility criteria are quite comprehensive because these plans are specifically considered to be manageable and meet the insurance requirements of a wide number of people and loved ones. Read on to know more about who may buy and benefit from term plans: 

  1. Young Individuals/Professionals 

    Term insurance plans help individuals who are going to join the workforce and do not have any liabilities. They offer benefits on tax and can provide an early start to planning and securing your after-retirement years. 

  2. Newly Married 

    Individuals who have just got married can also buy term insurance plan benefits. They can avail of joint term insurance plans or individual plans to make sure that in their untimely demise, the future requirements of their partner will be looked after. 

  3. Parents 

    People having children or planning a family in the future must consider buying a term insurance policy. Principally, if they are mainly the breadwinners of the family. A term insurance plan will make sure that during any unfortunate event, the educational/informative and the other requirements of your children will be protected and secured. 

  4. Senior Citizen 

    There are several parameters such as employment options for post-retirement and increasing life expectancy, that nullified the mutual belief that one does not need a term plan in old ages. Many people choose to work after getting retired and also contribute to the household salary. A term insurance plan might help you in replacing a salary in the absence of a breadwinner. Some want to support their children even after their retirement or might have some not-paid liabilities. So, this plan ensures your child’s life objectives and also takes care of your liabilities. 

Documents Required to Buy Term Insurance 

One of the important aspects of purchasing a term insurance policy is to submit the requested documents to fulfill the underwriting procedures. You can easily upload, email, or courier the documents directly to the insurer if you are purchasing a term plan online. 

  • Age Proof 

  • Income Proof 

  • Photographs 

  • Identity card 

  • Address proof

Wrapping It Up!

Term insurance plans are one of the basic, purest, and pocket-friendly forms of life insurance available in the market. The term insurance eligibility criteria are quite easy and provide a cost-effective form of insurance to a wide variety of people. At the end of the day, the unique benefits term plan offers to make it a preferred protection option for individuals at various stages of life, whether they are married, young, professionals, or working people.

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