Term Insurance on Rental Income or Capital Gains

Short answer

Most insurers do not give term cover on rent, interest or capital gains alone.
A few insurers do accept rental income or capital gains, usually counting about half of it.
In those cases, total cover is usually capped at around 2 crore, with 3 years of ITR.

What insurers usually look at

Type of income: rental income and capital gains may be counted by a few insurers. Interest and dividend income alone are generally not accepted.
Consistency: 3 years of ITR with computation of income is usually needed.
Earned income too? If you also have salary or business income, rental income can sometimes add to your eligibility.
Minimum income: usually around 5 lakh a year of such income.

Common reasons for rejection

Applying to an insurer that counts only earned income
Income only from interest or dividends
Less than 3 years of ITR
Cover asked above the cap for unearned income

Documents usually needed

ITR with computation of income for the last 3 years
Rent agreements or capital gains statements
PAN, Aadhaar and address proof

How FFFS helps

Rules differ a lot between insurers, and a rejection stays on record. We check your case against the current underwriting rules of several insurers before you apply, then suggest the insurer and plan that fit your profile.

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Questions

I live on rent from my properties. Can I get term insurance?

Yes, with a few insurers that count rental income, usually at about half its value and with a cap of around 2 crore.

Does interest income count?

Generally not on its own. Most insurers count earned income, and a few also count rent or capital gains.

I trade shares. Do my capital gains count?

A few insurers count capital gains if they are consistent over 3 years. Some count only a small part of it.

Rules differ by insurer and change from time to time. Final acceptance, cover and premium depend on the insurer's underwriting decision. Information checked in October 2026.

Term Insurance When Your Income Is Rent or Capital Gains