👤 1️⃣ Salaried Individuals
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Private employees
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Government employees
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PSU staff
✔ Eligible with salary slips & bank statements
💼 2️⃣ Self-Employed & Business Owners
-
Traders
-
Shop owners
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Professionals (CA, doctor, engineer, advocate, etc.)
-
Freelancers with income proof
✔ ITR and bank statements required
🌍 3️⃣ NRIs / OCIs
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Allowed as per insurer guidelines
-
Income proof mandatory
-
Medicals may be in India or abroad
👩🦰 4️⃣ Housewives (Important Update)
✅ Housewives are now eligible for term insurance, but under specific conditions.
✔ Based on husband’s income
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Wife has no personal income
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Husband must be earning
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Marriage proof required
✔ Allowed sum assured
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Usually ₹25 lakh to ₹1 crore
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Generally 10–30% of husband’s approved cover
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Depends on insurer underwriting rules
✔ Premium payment
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Paid by husband from his bank account
✔ Medical tests
-
Mandatory in most cases
📌 Reason:
Homemakers have economic value — childcare, household management, and family stability have real financial cost.
🚫 Who Cannot Take Term Insurance
❌ Below 18 years of age
❌ No income earner (except housewife case above)
❌ Students without income
❌ Unemployed persons
❌ Retired individuals (mostly)
🎂 Age Eligibility
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Minimum age: 18 years
-
Maximum entry age: 60–65 years
(some plans allow up to 70)
💰 Cover Depends on Income
| Annual Income | Approx Term Cover |
|---|---|
| ₹3–5 lakh | ₹50 lakh – ₹1 crore |
| ₹6–10 lakh | ₹1 – 2 crore |
| ₹10–20 lakh | ₹2 – 4 crore |
| ₹20+ lakh | ₹5 crore+ |
(varies by insurer)
⚠️ Important Rules
✔ Policyholder must be genuine
✔ Income must be verifiable
✔ No fake income declaration
✔ No agent-paid premiums
✔ No premium financing
Wrong information = claim rejection risk.
🧠 Simple Definition
Anyone whose death can cause financial loss to the family is eligible for term insurance.
📌 Final One-Line Truth
Term insurance is not for everyone — it is only for those whose life has financial value to dependents.
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