Even though a whole life insurance policy is a great insurance plan, it is still an agreement. It is an agreement between the insurer and the life insured. So, like any other agreement, it also has a specific set of rules and criteria. And the policyholder must follow these to become eligible to purchase a plan. Here, you will know about all the major eligibility criteria to buy whole life insurance.
Eligibility Criteria for Whole Life Insurance in India
Every potential policyholder must clear the eligibility criteria of a whole life policy. Insurers only provide the final policy documents after clearing the eligibility criteria and through documentation. And if there are any errors, they don’t approve the insurance application and refund the premium payment.
So, you must verify your details well in advance before moving ahead with the purchase or application process. Below are some of the necessary criteria that every person needs to clear to become eligible for the whole life policy.
The life insured must be an Indian national to become eligible for any life insurance policy in India. Some insurers also provide insurance to NRIs and Dual Passport Holders residing in India, but they come with several extra charges.
A passport, birth certificate and ration card are enough to prove nationality.
A medical examination is a must in a whole life policy, especially with a terminal illness and health covers. They are to ensure the health condition of the policyholder before issuing the policy. It also prevents people from taking false advantage of a life insurance policy plans.
You can obtain a medical report from any practising doctor per the insurer’s criteria.
Every life insurer asks whether the life insured consumes tobacco or not. It directly affects the premium amount, and if the health conditions are worst, it can also cause insurance application rejection. And even if insurers approve the application for tobacco consumers, their premium amount will be higher.
Medical reports will be necessary to show that you are not a tobacco consumer.
The eligible age is between 18 and 60 years in a whole life policy. So, any person between these ages can purchase and enjoy the benefits of a policy. These days some new insurance policies meant for children are also available, allowing purchasing whole life insurance even for infants.
A birth certificate and legal photo IDs are necessary for proof of age.
Proof of Income
Proof of income is necessary to verify if the policyholder or the one paying for the policy has enough resources to make premium payments.
For this purpose, a bank statement of salary slip will suffice.
Policy terms refer to the chosen plan details and modes of payment in a plan. You have to choose these details and submit them to the insurer while purchasing a plan. Some of the details you must choose are term duration, premium payment term, extra covers, coverage amount and premium amount.
The necessary documents are the policy application form and any other documents the insurer requires. The documents will differ from person to person based on the covers and relaxations chosen.
These criteria ensure that the policyholder is in the right financial, physical, and legal position before purchasing a plan. Knowing these eligibility criteria will come in handy when you need to purchase a whole life insurance policy.