Can You Buy Term Insurance Without Income Proof?

Can I Buy Term Insurance Without Income Proof? In India, getting term insurance without income proof is generally not possible because insurers use income documents to decide eligibility and assess whether you can afford premiums. That said, a few limited options exist. Saral Jeevan Bima allows individuals without regular income documentation to still access basic cover using simpler eligibility criteria. Similarly, some newer plans like Bajaj Allianz iSecure II and ICICI iProtect Super allow coverage by assessing income surrogates such as average bank balances, investment portfolios, car IDV, credit scores, spending patterns, or asset ownership. However, without income proof, term insurance often comes with lower coverage, higher premiums, and stricter underwriting checks.

If you earn an income but don’t have the standard documents required like ITRs, salary slips, or CA-certified statements, but still want to protect your family’s financial future, you’re probably wondering: Is it even possible to get term insurance without income proof?

While most insurers do ask for income proof, a few products and approaches with relaxed documentation requirements do exist. In this guide, we will walk you through how term insurance without income proof works, explain the alternatives, and highlight specific term insurance options that could suit your needs.

What Is Term Insurance Without Income Proof?

Term insurance without income proof does not imply that you have no income or financial means. Instead, it means you lack the standard documentation that insurers typically require to verify your earnings, assess your eligibility, determine the appropriate coverage amount, and set premiums. 

Income Proof Documents Required to Purchase a Term Insurance Plan

For Salaried Individuals

• Salary slips (last 3 months)
• Bank statements showing salary credits (last 3 to 6 months)
• Employer-issued salary certificate or employment verification letter (common for PSU/government employees)
• Employment contract/appointment letter with CTC break-up
• Form 16 issued by the employer
• Income Tax Returns (last 2–3 years)

For Self-Employed / Business Owners

• Income Tax Returns (last 2–3 years, with CA-certified computation of income)
• Chartered Accountant (CA) certified statements, such as audited Profit & Loss account and balance sheet
• Income certificate issued by CA
• Bank statements (showing business/professional credits)

Without these income documents, insurers can’t assess your financial eligibility in the usual way, but there are specialised plans that accept alternative proofs instead.

In short, the absence of traditional income proof doesn’t shut the door completely. With income surrogates like bank balances, credit score, or asset ownership, insurers still allow some flexibility. And that’s how specific groups of people can still access term insurance without income proof.

Who Typically Qualifies for Term Insurance Without Income Proof?

• Freelancers and gig workers (just starting out)
• Small business owners or sole proprietors
• Homemakers
• Commission-based professionals (agents, brokers)
• Farmers or informal-sector earners
• Early-stage startup founders
• Seasonal workers (e.g., event-based workers, sea farers)
• Cash-based earners such as local traders, artisans, or street vendors

If you fall into one of these categories, here are the main ways you can secure coverage without the usual paperwork.

How Can You Get Term Insurance Without Income Proof?

As mentioned above, while insurers must always confirm that you can afford the cover, some now allow this through alternative evidence of financial stability rather than traditional proof.

Here are some of the main options for how to get term insurance without income proof and after this, we’ll look at specific plans that offer them.

1. Saral Jeevan Bima – The IRDAI-Standard Product

IRDAI’s October 2020 circular made it mandatory for all life insurers to offer Saral Jeevan Bima from January 2021. The regulator specifically instructed that applicants cannot be denied cover based on education, income source, or occupation, making this the only truly standardized term option for those without traditional income proofs

This plan enables term insurance without income proof by accepting financial surrogates such as average bank balances, investment records, as eligibility criteria. It’s best to confirm the requirements directly with providers like SBI Life or LIC before applying.

Unique elements of Saral Jeevan Bima:

1. Sum Assured Range: Strictly standardized at ₹5 lakh – ₹25 lakh. Normal term plans usually allow ₹25 lakh to several crores.
2. Waiting Period of 45 Days:

• Accidental Death during waiting period → Full Sum Assured.
• Non-accidental Death during waiting period → Only return of premiums. (Most term plans have no waiting period except suicide exclusion).

3. Standardization Across Insurers: Same features, wording, benefits mandated by IRDAI (unlike regular term plans where features vary).

2. Buy a Joint Term Insurance Cover

Another route to getting term insurance without income proof is opting for a joint life cover with a spouse or family member who has verifiable income. In such cases, the earning member’s financial profile determines the cover amount. A handful of insurers such as PNB MetLife, Aditya Birla Sun Life, Bajaj Allianz Life, Edelweiss Tokio Life, ICICI Prudential Life, and HDFC Life, offer this option. However, it usually comes with conditions like both applicants clearing medical checks, completing full KYC, and, in some cases, restrictions on benefit payout structures or rider availability.

If you’re curious how these plans work in practice, here’s a detailed guide on joint life insurance policies.

These strategies open the door to coverage but what specific plans are available in the market today that actually allow them? Let’s take a look.

How to Get Comprehensive Term Insurance Without Income Proof

While most term plans need traditional income proof, there are two products that cater to people with real income but limited documentation.

Bajaj Allianz Life iSecure II

• Eligibility: 18–65 years, SA ₹25L–₹1Cr.
• Variants: Life (pure cover) & ROP (return of premium; not cost-effective).
• Key Features: Early Exit Option, Instant Payout on Claim Intimation, Auto Cover Continuance, Health Management Services.
• Riders: Accidental Death, Disability, Critical Illness, Family Protect.
• Income Verification: Often waived based on CIBIL score/digital spends; otherwise accepts surrogates like bank balance, investments, car IDV, property loans.
• Best for: Those without payslips/ITRs but can show financial stability via surrogates.

ICICI Pru iProtect Super

• Eligibility: 18–55 years, Sum Assured (SA) ₹50L–₹1Cr, min income ₹3L p.a.
• Key Features: Premium Break, Smart Exit (refund of premiums after 25 years), Terminal Illness Benefit.
• Riders: Accidental Death & Disability.
• Income Verification: Same as iSecure II
• Best for: Salaried or self-employed with limited income documentation.

Should You Buy Term Insurance Without Income Proof?

In most cases, the answer is yes, you should consider it now. Waiting to file multiple years of ITRs or collect other formal proofs could leave your family financially unprotected for years. And by the time you qualify, premiums will likely be higher due to age, inflation, and policy price changes.

But, the trade-offs?

• Coverage Cap: Usually up to  ₹1 crore only.
• Slightly Higher Premiums: For example, in Bajaj Allianz’s case, a sample premium comparison shows the self-employed-friendly iSecure Plan coming in at around 8% higher than the more traditional e-Touch Plan (₹665 vs ₹614/month for a ₹50 lakh cover).

In many cases, the cost difference is small compared to the benefit of having immediate protection. Which means, getting term insurance without income proof today is often worth it, even if it offers lower cover or slightly higher premiums. And since premiums, once locked in, remain fixed for the entire policy term, the long-term pinch is usually minimal.

Drawbacks to Keep in Mind

• Risk of Staying Underinsured: If you don’t actively build income proof, you might remain underinsured for years and face hurdles in future
• Risk of Inflation on Cover: Even ₹1 crore today will buy much less two decades from now. So capped covers may not meet future needs.

Special note for seniors (50+) and retired individuals: Term insurance without income proof rarely adds value at this stage. Since retirees no longer need income replacement, they face high premiums, capped cover, and limited benefits. Better alternatives include life-cum-investment plans, annuities for steady income, senior citizen health insurance, or estate planning tools to secure financial and legacy goals.

Note for Students and Agriculturist Profiles

Currently, most insurers do not offer standard term insurance plans to:

• Students who are still pursuing their studies, even if they earn through part-time work or receive a stipend. However, those looking to cover their education loan may sometimes be offered term/credit life insurance plans, subject to documentation such as home loan papers or parents’ income proof. ICICI Prudential has this provision in their term plans.
• Agriculturists, due to the risk categorization of their occupation profile. We recommend checking directly with insurer branches to confirm whether the Saral Jeevan Bima plan can be availed in these cases, as it is one of the limited options that may be applicable.

If you’re still unsure which route works for you, getting expert insurance guidance can save time and prevent costly mistakes.

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Ditto’s Advice on Buying Term Insurance Without Income Proof

If you earn but lack the standard documents for proof, don’t wait years to qualify for a term plan. Term insurance without income proof can act as your immediate safety net, even with its coverage caps and slightly higher premiums. The real cost difference is often negligible and the benefit of having protection from day one is greater.

However, don’t stop there. Use the time after buying this plan to actively build formal income documentation through consistent bank deposits, filed ITRs, GST returns, or CA-certified statements. Once you have solid proof, upgrade to a full-cover, competitively priced standard term insurance to lock in low premiums for decades and secure the right level of protection for your family.

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