Self-employed individuals can opt for tailored term plans that do not require income verification documents such as salary proof or Form 16. These policies now accept alternative income verification methods such as GST filings, credit histories and loan records.
Such flexibility allows self-employed people to buy term insurance without the rigid documentation previously required. Also, simplified underwriting processes and the ability to adjust coverage over time enhance accessibility, ensuring that those with variable incomes can secure adequate protection.
Insurers such as HDFC Life, and Bajaj Allianz and Max Life have customised their term plans to meet the specific needs of self-employed people. Sales of such plans are driven by young entrepreneurs. A study by Policybazaar.com shows that 74% of self-employed term insurance buyers are aged between 27 and 38, reflecting the proactive approach of younger entrepreneurs in securing their financial future.
