Documents required for buying Term Insurance

Buying Term Insurance in 2026 is faster and affordable today, but one thing has not changed: the tight paperwork. As per annual audited figures submitted to IRDAI for the year FY 25-26, ABSLI settled 98.86% of these claims, and accurate documentation at the time of purchase is one of the biggest reasons claims go through smoothly.

With GST on Individual Life Insurance premiums reduced from 18% to 0% effective 22 September 2025, and the post-budget tax environment making protection more affordable, now is the time to get your documents in order and secure your family's future. This guide walks you through every document you will need.

Source: https:/lifeinsurance.adityabirlacapital.com/customer-service/claim-procedure/online-claim/

Documents required when applying for Term Insurance

When you buy Term Insurance, insurers require certain documents to verify your identity, financial stability, and health status. Here is a comprehensive list of what you typically need:

1. ID proofs

Any government-issued identification document can serve as proof of identity. Common examples include:

• Aadhaar
• PAN card
• Passport
• Voter ID
• Driving licence
  
  

2. Age proofs

Accurate age is crucial for Term Insurance as it directly affects premium calculation. Acceptable documents include your birth certificate, PAN card, passport, Aadhaar, or school leaving certificate.

3. Address proofs

Documents that confirm your current residence, such as a recent utility bill, Aadhaar, passport, ration card, or registered rent agreement.

4. Income proofs

Insurers assess your financial status to ensure the coverage amount is justifiable based on your income. This also determines the maximum sum assured you are eligible for.

Documents may include:

• Recent salary slips (usually the last 3 months) for salaried individuals
• Form 16 or income tax returns (usually the last 2-3 years)
• Bank statements (usually the last 6 months)
• Audited profit and loss statements or ITRs for self-employed applicants
  
  

5. Medical documents

Depending on your age, the sum assured, and the policy terms, you may be required to undergo a medical examination. The insurer may request specific tests to assess your health condition. Documents might include a medical examination report from an authorised centre and previous medical records if you have any significant health history.

6. Photographs and proposal form

Passport-sized photographs are generally required along with a duly filled and signed proposal form provided by the insurance company. This form collects all your personal, medical, and financial details necessary for policy issuance. Always fill the proposal form yourself. Incorrect or incomplete disclosures are among the most common reasons claims run into trouble later.

7. Additional documents (case-specific)

• NRI status proofs: Demand for NRI Term Insurance is rising sharply in 2026. If you are a non-resident Indian, you may need proof of residency abroad, passport and visa copies, and details of your occupation and income in that country.
• Occupation proofs: For high-risk professions, an employer certificate or occupation declaration may be requested. Gig workers and self-employed applicants, a fast-growing buyer segment in 2026, can typically use ITRs and bank statements as income evidence.

What is Term Insurance and how does it work?

Term Insurance is the simplest and most cost-effective form of Life Insurance. You pay a fixed premium for a chosen tenure, and if you pass away during the policy term, your nominee receives the sum assured as a lump sum, monthly income, or a combination. In 2026, a widely used adequacy benchmark is a cover of at least Rs. 1 crore, or 10 to 15 times your annual income.

Source: https:/lifeinsurance.adityabirlacapital.com/articles/term-insurance/ideal-budget-for-buying-term-insurance/

With ABSLI, a Rs. 1 crore cover starts at around Rs. 575 per month for eligible profiles under the ABSLI Super Term Plan (age 21, male, salaried, non-smoker, Level Cover, regular pay, sum assured Rs. 1 crore, policy term of 10 years, annual premium of Rs. 6,900, which averages to Rs. 575 per month), and with 0% GST now applicable on Individual Life Insurance premiums, the effective cost is lower than ever.

The documents above exist to verify three things: who you are, that the cover matches your income, and that your health status is accurately recorded, so that your family faces zero friction at claim time.

Source: https:/lifeinsurance.adityabirlacapital.com/term-insurance/absli-super-term-plan/

Why do insurers need these documents?

• Identity verification: To prevent fraud and ensure the Insurance contract is set up with the correct policyholder.
• Age verification: Age significantly influences premium rates and eligibility, so insurers need it verified accurately.
• Financial assessment: Insurers assess income to ensure the coverage amount is justifiable. This protects both you and the insurer.
• Health assessment: Medical documentation allows fair underwriting and prevents claim disputes arising from non-disclosure.

Wrapping Up

Ensuring you have all these documents ready before you apply can significantly streamline the process of buying Term Insurance. Requirements can vary slightly between insurers, so always check with your provider. Getting the paperwork right at purchase is also what protects your family at claim time, and with ABSLI settling 98.86% of individual death claims (as per annual audited figures submitted to IRDAI for the period FY26), accurate documentation plus a strong claims record is the combination your family deserves.

Ready to start? Explore ABSLI Term Plans and estimate your premium in minutes.

Product Disclaimer: ABSLI Super Term Plan (UIN: 109N153V02) is a Non-Linked Non-Participating Individual Pure Risk Premium Life Insurance Plan. Life Insurance Coverage is available in all products.

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