With a lot of uncertainties around the corner, it becomes essential for everyone to have health and life insurance. Insurance is a legal contract between the policyholder and the insurance company where the company promises to protect the policyholder from a financial crisis in case of a misfortune event. But the question is: Who can take insurance? Or Do you need permission for insurance?
Based on the agreement between the company and the policyholder, if the required conditions are met at the time of claim, the insurance company has to pay the coverage to the policyholder. Insurance money is tax-free, and the policyholder or his beneficiaries may decide what to do with that amount.
Anyone meeting specific criteria for eligibility for insurance can and must have insurance plans, depending on their need. Let us now see Who is eligible for insurance.
Must-Have Insurance Type and their Eligibility Criteria
The Insurance Regulatory and Development Authority or IRDAI is a statutory body under the Ministry of Finance, Government of India, responsible for regulating and developing the Indian insurance industry. It creates the insurance eligibility criteria and guidelines and protects the policyholder's interest.
There are many insurance companies in the market selling various types of insurance. It becomes essential for us to compare, analyze who can take insurance, and check the criteria for eligibility for insurance in each case. Here are some common types of insurance and their criteria for eligibility.
Life Insurance
Life Insurance is for protecting your loved ones against any financial crisis. People tend to forget that today, they are working and earning to take care of their families. Still, any day, some unexpected event can leave their family alone in a miserable condition. So, it becomes essential for everyone to plan for the future and have their families’ future secured by having a good life insurance plan.
What are the Eligibility Criteria for Life Insurance?
Here is the eligibility criteria for life insurance:
- Age Limit for Life Insurance
From term life insurance, the minimum age barrier is 18 years . People aged 65 and 75 can take term life insurance depending on which insurance company they accept the policy. For the whole Life Insurance, people from the early age of 15 days to 75 are eligible. The term life insurance is for 10, 20, or 30 years, whereas the whole life insurance has a maturity age of 100 . Getting yourself life insurance at an early age significantly reduces the premium.
- Citizenship Criteria for Life Insurance
Anyone who has valid proof of his or her Indian citizenship, such as Income proof, ID proof, Address proof, Age proof, or Aadhar Card, meets the criteria for eligibility for Insurance. PIOs and NRIs can also take insurance in India after doing certain formalities.
- Health Conditions
Insurance companies demand complete medical tests for the policyholder to understand his health. The policyholder must be completely honest with the company about his health condition. Otherwise, there might be problems at the time of claim. Health condition is also a factor in determining the premium rates. Smokers and non-smokers have different premium rates.
- Income Proof
Some policies ask for Income proof to check for the financial stability requirements. Income proofs tell the insurance company about the policyholder’s financial responsibility and ability to pay the premium. Stable income sources are required to meet the premium obligations. People with good CIBIL scores have to pay lower premiums. For example, Reliance Health Infinity Insurance has specific discounts on premiums depending on your credit score.
Apart from these, there might be some documents that the Insurance Company may ask for.
Health Insurance
Health Insurance covers the policyholder's and his family's medical bills, depending on his policy. Health insurance is essential because we usually plan all our expenses but do not make a budget for illness or hospital visits. An unexpected illness could occur at any time and mess up our budget. So, having a health insurance policy for you and your family is advisable.
What are the Eligibility Criteria for Health Insurance?
Here are the eligibility criteria for health insurance:
- Age Limit for Health Insurance
Usually, health insurance policies are only for people between the ages of 18 and 65. However, there are some policies where senior citizens aged more than 65 and children from 90 days to 18 years can also have health insurance.
- Current Health Status
Apart from age, current health status is essential for companies before providing health insurance to anyone. The amount of health insurance coverage may also vary depending on whether the policyholder had any pre-existing medical conditions. For some policies, the eligibility criteria for insurance depend on whether there is any pre-existing medical condition.
- Medical screening
In the majority of health insurance companies, there is a whole body complete checkup where blood and urine samples are also tested. It is done to ensure that the policy applicant does not have any underlying medical issues that may cause problems in the future.
Apart from these, there might be some documents that the Health Insurance Company may ask for.
Auto Insurance
Has a policeman ever stopped you and asked for your vehicle insurance? Yes, auto insurance is essential not only to minimize your financial loss but also to escape fines. The governments of many countries have made it mandatory to have vehicle insurance. Auto insurance is also essential so that the property damage can be compensated if there is an accident.
What are the Eligibility Criteria for Auto Insurance?
Here are the eligibility criteria for auto insurance:
- Driver's Age and Experience
The minimum to get auto insurance is 18. Depending on the driver's age and experience, there are specific differences. A driver with clean driving might get better eligibility and lower premiums.
- Vehicle Type
There are different insurance for different types of vehicles. Depending on the types and the value of the vehicles the coverage and the premium costs might change.
- Documents
It is essential to have your vehicle registration certificate. You also need an Aadhar card, address proof issued by the government, and your vehicle’s recently Updated Pollution Under Control (PUC) certificate.
Home Insurance
Home insurance safeguards the house and the homeowner's belongings from financial losses due to unexpected events like fire, theft, or any natural disaster. Home Insurance provides coverage for the structure of the building, personal accidents, public liabilities, burglary, and theft. Having home insurance removes the stress from the homeowner anytime he plans to go out and leave his house and belongings alone. Renters who want to protect their belongings also opt for home insurance.
What are the Eligibility Criteria for Auto Insurance?
Here are the eligibility criteria for auto insurance:
- Property Type
Different types of properties have other criteria for eligibility for home insurance. Home insurance cannot cover properties such as kutcha houses, plots of land, or areas under construction. In housing apartments, any authorized member is eligible for home insurance.
- Location
If the property is in an area prone to disaster, it may have different criteria for eligibility for home insurance. Having security systems and guards in the locality also affects the premium cost.
Apart from these, there might be some documents that the Home Insurance Company may ask for.
Insurance is a financial product and a strategic investment for securing the future. People of all ages are eligible for either one or other insurance. People tend to take these things lightly, which might cause problems in the future. It is best to get all aspects of your life insured at the right time to enjoy it with any tension for future events. Feeling that everything will be secured for your family after you is a significant relief for anyone.
