How to Get Term Insurance Without ITR in India (2025)
Quick overview
If you don’t have ITR (Income Tax Returns), you can still buy term insurance — but options and maximum cover may be limited. This guide explains practical alternatives insurers accept, LIC-specific notes, steps to apply, and how to improve your chances of higher cover later.
Tip: Insurance companies ask for income proof mainly to validate the requested sum assured. For smaller cover amounts, alternatives are accepted more readily.
At-a-glance
- Possible without ITR: Yes — especially for cover up to ₹20–25 lakh (varies by insurer).
- Common alternatives: Bank statements, salary certificate, employer letter, CA certificate, Form 16 (if available).
- LIC approach: More flexible on documentation for modest sums; NRIs may be accepted with passport and NRE/NRO proof.
- Higher cover (>₹50L): Insurers usually require ITR or audited accounts.
Why insurers ask for ITR
ITR helps insurers confirm declared income so they can underwrite the policy appropriately and reduce fraud. If someone claims a very high sum assured without matching income proof, insurers may reject the application or the claim later.
Document alternatives to ITR (what insurers commonly accept)
For salaried individuals
- Latest 3–6 months bank statements showing salary credits
- Employer certificate on company letterhead (salary & designation)
- Form 16 / Salary slip (if available)
For self-employed / business owners
- Bank statements (6–12 months), GST returns (if filed)
- CA certificate of income (signed & stamped)
- Business registration documents and utility bills for the office
For NRIs
NRIs can often use passport copy, visa/OCI, NRE/NRO account statements, and a letter from employer abroad. LIC and many private insurers allow premium payments from NRE/NRO accounts. Confirm country-specific restrictions — some insurers limit issuance in certain high-risk jurisdictions.
LIC-specific notes
LIC traditionally follows conservative underwriting. For modest term cover (typical retail cases), LIC may accept bank statements, salary certificates, or employer letters instead of ITR. If you’re an NRI, carry a notarized passport copy, valid visa/OCI, and NRE/NRO account statements.
- LIC policies are reliable for claim settlement but verify the underwriting checklist with your local LIC agent.
- For very large covers, LIC will request stronger proof — be prepared to file ITR or provide audited accounts.
Practical application checklist (sample)
1. Photo ID (Passport / Aadhaar / PAN)
2. Address proof (Passport / Utility bill / Driver's license)
3. Bank statements (6 months) showing income or regular credits
4. Employer letter / salary certificate OR CA certificate (for self-employed)
5. Passport & visa (NRIs) + NRE/NRO account statement
6. Medical reports (if required by insurer based on age/sum assured)
7. Filled proposal form + signed declaration
Keep scanned copies ready for the insurer portal — many insurers accept e-submissions with e-signatures.
How to increase chances of approval (without ITR)
- Start with a conservative sum assured that matches your visible income flow.
- Provide more supporting documents: bank statements, employer letter, CA certificate.
- Opt for a medical checkup if insurer requests it — passing medicals improves acceptance odds.
- Consider a term plan with Return of Premium (ROP) or limited pay options if underwriting is easier.
When you must provide ITR
Insurers typically ask for ITR when:
- The requested sum assured is high (varies by company — often >₹50 lakh).
- The applicant is self-employed and no reliable bank credit pattern exists.
- There are red flags during underwriting (e.g., large unexplained deposits).
Sample FAQ
Q: Can a fresher (no ITR) buy term insurance?
A: Yes. Freshers and first-jobbers can provide salary slips or employer letter; insurers commonly accept smaller covers without ITR.
Q: Will claim be rejected later if I buy without ITR?
A: Not if you submit accurate documents. Rejections occur when income is intentionally misrepresented. Be truthful and keep proof of premium payments and proposal form copies.
Q: Are premiums higher if I don't provide ITR?
A: Premiums are set by age, sum assured, and health. Lack of ITR doesn't automatically increase premium, but limited data may restrict the maximum cover offered.
Actionable next steps — What you should do now
- Decide a realistic sum assured based on bank credits/expenses.
- Collect alternate documents listed above. If self-employed, get a CA certificate.
- Request quotes from multiple insurers (LIC + 3 private insurers) and compare claim settlement ratio, premium and underwriting flexibility.
- Apply online or via an LIC agent and upload scanned documents. If asked for ITR and you can’t provide it, explain your situation and attach alternate proofs.
Pro tip: Once you file ITR for a year, you can request a higher cover or add riders — that expands options considerably.
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