What are the Documents Required for Term Insurance Purchase and Claim?

How many times have we rummaged through drawers, searching frantically for a missing PAN or Aadhaar, documents that always seem to disappear just when we need them most? It’s frustrating, especially when it comes to something as crucial as term insurance. Whether you're buying a policy or making a claim, documentation is the backbone of the process. From ID and income proof to claim forms and death certificates, every document ensures that your policy works when it matters. Thankfully, according to Ditto, both the application and claim process can now be done 100% digitally, making things a whole lot simpler, faster, and stress-free.

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Overview

Documents Required for Term Insurance Purchase

To purchase term insurance, both individuals and entities must submit specific documents that help insurers verify identity, address, income, and financial credibility. These documents vary depending on the applicant type—individual, company, firm, trust, or Hindu Undivided Family (HUF)—and ensure proper underwriting and regulatory compliance.

Documents Required for Term Insurance (Individual Applicants)

When you apply for term insurance as an individual, insurers ask for a set of documents to assess your eligibility and underwrite the policy correctly. These documents verify your identity, address, income, and financial capacity.

Basic Documents:

• KYC Documents: Aadhaar, PAN card, Passport, Voter ID, Driving License
• Address Proof: Same as above, or utility bills and bank statements
• Income Proof (any one):
  • Latest 3-month salary slips (with Provident Fund & professional tax deduction)
  • Income Tax Returns along with Computation of income (last 2-3 years)
  • Bank statements (past 6 months showing consistent income)
  • Audited company/firm accounts (for business owners)
  • Chartered Accountant certificate
  • Rental income proof (rent agreement + rent receipts)
  • Fixed deposit or mutual fund redemption statements

• Medical History: If applicable, the insurer may request reports/prescriptions, or tests
• Nominee Details: Name, relation, percentage allocation, ID, and address proof
• Bank Account Details: Cancelled cheque or passbook copy for payout/refunds

TL;DR: To buy term insurance as an individual, you’ll need KYC documents, address proof, income proof, and bank details. Insurers may also request medical history and nominee information to complete the underwriting process.

Documents Required for Term Insurance – Companies

Companies purchasing group term insurance for employees must submit corporate documentation and authorized signatory details.

Required Documents

• Certificate of Incorporation
• Memorandum & Articles of Association
• PAN card of the company and Beneficial Owner (BO)
• Board resolution for buying insurance
• Power of Attorney for an authorized signatory
• Identity, address proof, and a photo of the authorized person
• Beneficial Owner Declaration Form
• KYC of Beneficial Owner (Photo + ID + Address)

TL;DR: Companies applying for group term insurance must provide business registration documents, PAN, board resolution, and identity proof of the authorized signatory, along with KYC details of the Beneficial Owner.

Documents Required for Term Insurance – Partnership Firms

Firms need to prove business legitimacy and consent from partners for premium payment.

Required Documents

• Registration Certificate
• PAN of the firm and the Beneficial Owner
• Partnership Deed
• Consent from partners for premium payment
• Valid ID, address proof, PAN, and photo of authorized signatory
• Beneficial Owner Declaration Form
• KYC of Beneficial Owner (Photo + ID + Address)

TL;DR: Partnership firms must submit registration proof, PAN, the partnership deed, and partner consent for premium payments, along with KYC details of the Beneficial Owner and the authorized signatory.

Documents Required for Term Insurance – Trusts & Foundations

Trusts must submit legal registration and trustee approval to validate the purchase.

Required Documents

• Certificate of Registration
• Trust Deed
• PAN of trust and Beneficial Owner
• Consent from trustees
• ID, address proof, PAN, and photo of the authorized person
• Beneficial Owner Declaration Form
• KYC of Beneficial Owner (Photo + ID + Address)

TL;DR: Trusts and foundations must provide legal registration documents, trust deed, trustee consent, PAN details, and complete KYC of both the authorized person and the Beneficial Owner to validate a term insurance purchase.

Documents Required for Term Insurance – Hindu Undivided Family (HUF)

For HUFs, the Karta acts on behalf of the family for insurance purchases.

Required Documents

• HUF Registration Certificate (if available)
• PAN of HUF and Karta
• KYC documents of Karta (Photo + ID + Address)

TL;DR: For Hindu Undivided Families (HUFs), the Karta must submit the HUF’s PAN, their own PAN, and KYC documents, and the HUF registration certificate (if available) to complete a term insurance purchase.

Income Proof Requirements for Term Insurance

Depending on your employment type and residency status, insurers may ask for different sets of documents to verify your source of income. This helps assess your financial capacity and decide the appropriate sum assured for your policy. Let’s break it down:

Salaried Individuals (Resident Indians)

• Salary slips from the last 3 months
• Income Tax Returns (ITR) or Form 16
• 6-month bank statement showing regular salary credits
• Offer letter with CTC Breakups and Company ID card

Self-employed / Business Owners

• ITRs / assessment orders/income computation for 3 years
• Audited company or firm accounts
• Partnership deed (for firms)
• Chartered Accountant’s certificate
• 6-month bank statement showing business transactions
• Fixed deposit/mutual fund redemptions
• Rent receipts

NRIs, PIOs, OCIs, Housewives, and Applicants from Special Jurisdictions

• Payslips from foreign employer
• Foreign bank statements showing salary credits (translated if not in English)

TL; DR: Income proof requirements for term insurance vary by profile. Salaried individuals need salary slips, ITRs, and bank statements; self-employed applicants must show audited accounts and business income; NRIs and others require foreign payslips and translated bank statements.

Documents Required for Term Insurance Claims

Submitting the proper documents is essential for a smooth claim process. Here's a breakdown based on the nature of the death.

1. Natural Death

In the case of a natural death (due to illness, old age, or medical condition), the nominee must provide the following mandatory documents:

• Original policy document (Not required if the policy is in dematerialised/electronic form)
• Duly filled Death Claim Form
• Death certificate issued by a local authority
• Claimant's passport-size photograph
• Personalized cancelled cheque or bank passbook of the nominee (with printed account number, IFSC code, and account holder’s name)
• Valid identity proof of the claimant
• Valid address proof of the claimant
• PAN Card or Form 60 (if PAN is unavailable)
• Employer’s Certificate (only if the life assured was employed; not applicable for pension or annuity plans)

Additional documents that may be required include:

• Medical Cause of Death Certificate (issued by the treating doctor or hospital)

2. Unnatural Death

(Accidental Death, Murder, Suicide)

If the death is due to unnatural causes, the documentation is more extensive due to the need for legal verification. The mandatory documents include:

• Original policy document (Not needed for dematerialised policies)
• Death Claim Form
• Death certificate issued by a local authority
• First Information Report (FIR)
• Claimant's passport-size photo
• Personalized cancelled cheque or bank passbook
• Claimant’s ID proof
• Claimant’s address proof
• PAN Card or Form 60

Additional documents may include:

• Panchnama or inquest report (issued by police)
• Post-mortem report (PMR)
• Police final report or charge sheet
• Chemical Viscera report (if applicable)
• Life assured’s driving license (for road accident cases)
• Newspaper clippings or eyewitness testimony (if available)

These documents help establish the exact cause and circumstances of the death, ensuring regulatory compliance and proper claim assessment.

3. Death Due to Natural Calamities or Disasters

In case the life assured dies due to a natural disaster (like floods, earthquakes, etc.), the following documents are usually needed:

• Death certificate issued by the Government or a relevant disaster authority
• Completed death claim form (with NEFT mandate details)
• Original policy document (not required if e-policy)
• Claimant's valid address proof
• Claimant's identity proof
• PAN Card or Form 60
• A passport-size photograph of the claimant
• Cancelled cheque or bank passbook of the claimant

Additional documents may be requested if identity or cause of death is difficult to verify, such as:

• Eyewitness testimony or statements from those who accompanied the deceased
• Local authority certification/notification of missing persons and their being declared dead (if the body is not recovered)

4. Death Outside India

If the death occurs abroad, the nominee will need to arrange translated and attested documentation. Required documents typically include:

• Embassy- or consulate-attested death certificate
• FIR equivalent or local police report (in case of accidental death)
• Certified English translations of all documents (if not originally in English)
• Valid passport copy of the deceased
• Proof of repatriation or cremation, if available

It's advisable to check with the insurer for jurisdiction-specific document requirements.

5. Special Scenarios and Disputes

In unique or complex situations, additional steps may be involved:

• Moratorium Period (MP): If the policy has completed 3 years, the claim is usually subject to less scrutiny and faster timeline under IRDAI's guidelines.
• Disputed Nomination / Multiple Legal Heirs: In case of conflicting nominees (e.g., multiple marriages or children from different spouses), the insurer may ask for an attested Will, Succession Certificate, or may involve court proceedings.
• Missing Policy Documents: If the original policy is lost but the policy is digital (post-2020), digital copies are accepted in most cases.
• Legal Assistance: Some complex disputes may require legal support or insurer-appointed investigators.

Always ensure the claim form is completely and correctly filled, and all KYC documents match exactly with what’s on record. Incomplete or inconsistent documentation is the number one cause of claim delays.

Why is having the necessary documentation for term insurance important?

Having the necessary documentation for term insurance is crucial for two primary reasons:

1. During Purchase: It helps the insurer accurately assess and underwrite your risk profile, verify your identity and income, and issue the policy without delay.
2. During Claim: It ensures a smooth and timely settlement of the death benefit to the nominee, especially during an emotionally difficult period. Lack of proper documentation can lead to claim delays, additional scrutiny, or even rejection in some cases.

Here are real-life examples to show the difference documentation can make in both scenarios:

1. Buying Term Insurance

a. Ravi – Has All Documents Ready
Ravi, a 35-year-old salaried software engineer, decides to purchase a term insurance plan. He submits:

• His recent 3-month salary slips
• 6 months' bank statement with salary credits
• A valid Aadhaar and PAN card
• A valid utility bill with the current address

Because all his income and identity proofs are in place, the insurer quickly verifies his details, conducts a medical test, and, after being satisfied with everything, issues the policy within 5 working days. Ravi now has ₹1 crore cover at an affordable premium, and his family is financially protected.

b. Deepak – Missing Documents
Deepak is a self-employed shop owner in a small town. He wants to buy a term plan but doesn’t have filed ITRs or a PAN card. He also cannot produce proper proof of income, except for bank statements showing occasional deposits.

Since term insurance involves long-term risk assessment, and Deepak lacks verified income and identity proofs, the insurer places his proposal on hold. He's asked to submit additional documents like a CA certificate, GST filings, or an audited balance sheet, delaying the policy issuance. If he fails to provide adequate documentation, the application may be declined.

2. Death Claim Scenario

a. Nominee Has All Documents – Smooth Claim
Priya is the nominee in her husband Arjun’s term insurance policy. Unfortunately, Arjun passes away due to a cardiac arrest. Priya submits:

• The original policy document
• Death certificate from the municipal corporation
• Hospital-issued discharge summary and necessary reports
• Her own ID proof, address proof, and PAN
• Personalized cancelled cheque for claim payout

The insurer verifies all details, finds no discrepancy, and processes the ₹1 crore sum assured within 10 days. Priya receives the funds without legal complications, helping her cover immediate financial needs and future stability.

b. Nominee Missing Key Documents – Delayed Claim
Shalini’s father, who had purchased a term insurance policy, passed away in an accident. Shalini is the nominee, but:

• She doesn’t have a copy of the policy document (policy issues pre-digitisation drive)
• The FIR and post-mortem report are pending from the police
• Her PAN is unavailable, and her address proof is outdated

Because of missing mandatory documents like the FIR and PMR (required for accidental death), the insurer cannot process the claim. Shalini must now coordinate with the police for the reports and apply for a duplicate PAN. The claim remains on hold for weeks or even months, adding emotional and financial strain during an already difficult time.

What do I do if I misplace the documents required for term insurance? Ditto’s Take

If you misplace the documents required for term insurance, don’t panic. Most insurers now accept digital copies, especially for policies purchased after 2020. These policies are often stored electronically and don’t require submission of physical originals. You can request digital copies of key documents like the policy document, proposal form, or claim form directly from your insurer’s website or customer support. For claims, insurers usually accept scanned versions of necessary proofs such as identity, address, and medical/death certificates, subject to verification and approval. Ensure the scanned documents are clear and legible.

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Conclusion

• The right documents ensure faster policy approval – Submitting complete and accurate paperwork speeds up underwriting and helps avoid unnecessary back-and-forth with the insurer.
• Proper documentation avoids claim delays – At the time of death, having all required claim documents makes the process easier for nominees during emotionally difficult times.
• Each scenario requires specific paperwork – Whether it’s a natural death, accidental death, or a claim by an NRI or company, the document checklist can vary significantly.

Need help choosing the right term plan or preparing your documentation? Talk to our advisors at Ditto – we’ll help you get it right, from start to claim.

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