Are You Eligible for Term Insurance? Find Out Here

Are You Eligible for Term Insurance? Find Out Here

Buying a term insurance plan is one of the simplest ways to secure your family’s financial future. However, every insurer follows certain eligibility criteria that determine who can buy a policy and on what terms. These include factors like age, income, occupation, lifestyle, and health status, all of which influence your premium amount and coverage options. Understanding these criteria helps you make an informed choice and select a plan that fits your long-term goals.

This blog outlines the key eligibility requirements for buying term insurance and explains what applicants should know before applying.

What Is Term Insurance?

Term insurance is a type of life insurance plan that provides financial protection to your family for a fixed period. In case of the policyholder’s death during the term, the nominee receives the sum assured as a death benefit.

It is one of the most affordable forms of life insurance, offering high coverage at relatively low premiums, making it ideal for individuals seeking simple yet effective financial security.

Key Eligibility Criteria for Term Insurance

Eligibility for term insurance depends on factors such as age, income, occupation, and health. Most insurers require applicants to fall within a specific age range and have a stable income to ensure affordability of premiums. These parameters help determine policy approval and coverage amount.

Entry Age & Maximum Age Limits

Most insurers specify a minimum and maximum entry age for purchasing term insurance. Generally, the minimum age starts at 18 years, while the maximum may range from 60 to 65 years, depending on the insurer.

The policy term is often linked to the entry age, ensuring coverage continues until a reasonable maturity age, usually up to 75 or 80 years. Checking these limits helps you plan timely and adequate life cover.

Sum Assured / Coverage Limits

The sum assured, or coverage amount, is the financial benefit your nominee receives in case of your death during the policy term. The minimum and maximum coverage limits vary across insurers and are influenced by your income, occupation, and lifestyle.

Typically, insurers recommend choosing coverage that equals 10–15 times your annual income to ensure sufficient protection for your family’s future financial needs.

Policy Term / Maturity Age

The policy term determines how long your term insurance coverage remains active. It usually ranges from 10 to 40 years, depending on your age and financial goals.

The maturity age up to which coverage continues typically falls between 65 and 85 years. Selecting the right term ensures your dependents remain financially secure throughout your earning years and beyond.

Citizenship / Residential Status (INR / NRI / OCI / PIO)

Term insurance is available not only to Indian residents but also to NRIs, OCIs, and PIOs, subject to certain conditions. While most insurers allow overseas applicants to buy policies in Indian Rupees, the premium payment and medical requirements may vary based on residency.

Providing valid identification and proof of citizenship or residential status ensures smooth policy issuance and claim processing.

Documents Required for Term Insurance Eligibility

When applying for a term insurance plan, you need to submit certain documents to verify your identity, income, and medical background. These help insurers assess your eligibility and ensure a smooth approval process. Commonly required documents include proof of identity (such as PAN card, Aadhaar, or passport), proof of address (like utility bills or rental agreements), and proof of income (salary slips or ITR).

Additionally, insurers may request age proof and recent medical reports, depending on the coverage amount and your declared health status.

Submitting accurate and valid documents not only speeds up the verification process but also prevents future claim-related complications.

Why Should You Get a Term Insurance Plan?

Term insurance is one of the most reliable ways to safeguard your family’s financial future. It ensures that in your absence, your loved ones remain financially independent and secure.

Key benefits include:

• Provides financial protection to your family in case of an untimely death
• Offers high coverage at affordable premiums
• Helps maintain your family’s lifestyle and meet long-term goals
• Covers outstanding loans or liabilities
• Offers tax benefits under Sections 80C and 10(10D)
• Allows flexible policy terms and riders for added benefits
• Acts as an income replacement for dependents
• Brings peace of mind by ensuring long-term financial stability

In short, a term insurance plan offers comprehensive protection at minimal cost, making it an essential part of any responsible financial plan.

Documents Required for Buying Term Insurance Plans

To buy a term insurance plan, you need to provide documents that verify your identity, age, income, and address. These include Aadhaar card, PAN card, passport, or voter ID as identity proof; utility bills or rental agreements as address proof; and salary slips, Form 16, or ITR as income proof.

Some insurers may also request medical test reports to assess health conditions before approving the policy.

AN Nov 20/25