Hurdles and solutions: What self-employed should do to get term insurance

Sum insured should be equivalent to 10-15 times income and the cover should extend until financial liabilities have been settled

With life insurers altering their income assessment criteria for the self-employed, more people from this category are opting for term policies (which are pure insurance covers). Online insurance platform Policybazaar.com witnessed a 10 per cent jump in the issuance of term insurance policies to self-employed individuals between Q2 FY22 and Q2 FY23. 

Hurdles for the self-employed

Self-employed individuals often encounter hurdles in obtaining term insurance due to the absence of standardised income proof.

“The lack of consistent documentation, unlike in the case of their salaried counterparts, can result in difficulties in proving their income. This, in turn, leads to inadequate