Term Insurance 3761 views November 11, 2018

It is necessary to submit proof of income while buying a term insurance plan. Knowing the extent and nature of income of the policyholder is important for financial underwriting purpose. Insurers screen the details submitted in the insurance proposal form to decide if they would like to accept it or not. The information shared by the customer, including health and income details, through the proposal form helps determine the maximum amount of life cover corresponding to certain premium rates that the customers can avail.

Term Insurance

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Details of income proof of the customer avoid:-

  • The possibility of over-insurance by the applicant;
  • A possibility of policy lapse;
  • Chances of the customer seeking high-risk cover.

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