Term Insurance Eligibility Details

Term Insurance Eligibility Details

It is a tremendous relief to have a safe financial net that lets you pay unanticipated costs during times of economic and financial uncertainty and suffering. Purchasing a term insurance policy is the most significant investment/savings you can make to achieve all of your life goals. Here we discuss the term insurance eligibility criteria. 

However, it’s crucial to understand what term insurance is and how it operates. It’s also a good idea to know the requirements for term insurance eligibility because it makes the process of getting the term plan of your choice more convenient and straightforward. 

Term Insurance Eligibility Criteria 

A term plan is a cost-effective, straightforward, and handy kind of life insurance that pays a pre-determined death benefit to the policyholder’s nominees/beneficiaries if he or she dies within the policy period. This allows you to receive a high quantity of life insurance for a relatively modest price.

This arrangement, however, does not offer maturity advantages. As a result, premium payments are minimal, pocket-friendly, and cost-effective. Term insurance, like any other insurance policy, includes eligibility requirements such as a minimum and maximum entrance age. Let’s take a closer look at these criteria for a better understanding.

It is ideal to ensure that you match the qualifying conditions for the term plan of your choice before purchasing it. Although the qualifying conditions for term insurance vary by insurer and plan, there are several basic elements that apply to all policies:

  • The insurance buyer or term plan policyholder must be an Indian citizen. PIOs and NRIs can also benefit from term plans offered by Indian life insurers.
  • Most insurance firms require that the policyholder undergo a health examination before purchasing a term insurance policy. This assists the insurance business in determining the medical problems and dangers involved, as well as the amount of premium the life insured is likely to pay.
  • Because smoking offers a greater risk of health to an individual, term insurance rates for smokers are often higher than for non-smokers.
  • To fill out a term insurance application, the life insured must always present the appropriate documentation.
  • A term insurance policy can be purchased between the ages of 18 and 65. Determining term plans based on various life phases is crucial. As people become older, their financial goals change, which necessitates modifications in their insurance coverage.

Who Are Eligible to Buy Term Insurance Plans? 

As previously said, term insurance eligibility requirements are rather broad because these plans are designed to be manageable and satisfy the insurance needs of a wide range of people and loved ones. Continue reading to learn more about who may purchase and profit from term plans:

Young Individuals/Professionals 

Individuals who are about to enter employment and have no responsibilities can benefit from term insurance coverage. They give tax advantages and might help you prepare for and secure your post-retirement years sooner.

Newly Married 

Individuals who have just married can also purchase term insurance coverage. They can get joint or individual term insurance plans to ensure that their partner’s future needs are met in the event of their untimely death.


People who are expecting children or planning a family may consider purchasing a term insurance policy. Especially if they are the family’s primary breadwinners. Term insurance will ensure that your children’s educational, informational, and other needs are secured in the case of a disaster.

Senior Citizen 

Several factors, including post-retirement career opportunities and rising life expectancy, have debunked the widespread idea that a term plan is unnecessary in later life. Many retirees opt to continue working and contribute to the household income. In the absence of a breadwinner, a term insurance plan might assist you to replace a paycheck. Some people desire to assist their children even after they retire, or they may have unpaid debts. As a result, this plan protects both your child’s life goals and your obligations.

Documents Required to Buy Term Insurance 

One of the most crucial components of buying a term insurance policy is submitting the required paperwork to complete the underwriting process. If you’re buying a term plan online, you may quickly upload, email, or courier the paperwork to the insurer.

  • Age Proof 
  • Address proof
  • Identity card 
  • Photographs 
  • Income Proof 

Wrapping It Up!

Term insurance policies are one of the most basic, straightforward, and cost-effective types of life insurance accessible. The qualifying requirements for term insurance are simple and give a cost-effective kind of protection to a wide range of people. Finally, the specific benefits that a term plan provides make it a popular protection solution for people of all ages, whether they are married, young, professionals, or working people.