When signing up for different insurance policies, your insurance agent may ask for proof of income. How do you prove this? Here are a few methods.
When applying for insurance, you can’t just submit a form and be done straight away. You’ll also need to attach some documents, such as proof of income. Otherwise, the insurer won’t have evidence of your current financial situation.
In this article, we’ll show you what counts as proof of income so you can get things moving.
The easiest way for how to show proof of income is to show your bank statements. These will display a history of your employer or clients making regular deposits into your bank account.
With online banking available at most institutions, it should be simple to log on and print statements from the relevant time frames.
This can be an excellent choice for proof of income if you’re self-employed and don’t receive a regular paycheck from an employer.
You should be saving your paystubs from up to a year ago for your own records. If you have been doing so, you can easily find and submit these as proof of income documents.
If you haven’t saved your paystubs from an employer, or you’re self-employed, you can still use this method. You can go to a paystub generator free website, enter your information, and create your own paystubs. Do note that if you choose to generate your own paystubs, you’ll have to add other documents from this list to support your claims.
W-2 or 1099 Forms
For regular employees, their employers will file a W-2 every year for them. This will show all their wages, as well as any deductions and taxes withheld. All you have to do is obtain this document from your employer and attach it with your insurance application.
Otherwise, if you’re self-employed, you won’t have a W-2. Instead, if you’ve made over $400 in a year, you’ll have to file a 1099 form. There won’t be any deductions on the 1099; only the money paid to you by clients will be shown on this form.
These are also easy forms to use for proof of income because you’re obligated by the law to have them if you’re earning money. You won’t have to go through any extra work to obtain these forms, as they’ll either already be filed for you, or you’ll have to file anyway for income taxes.
Use the Above for Proof of Income When Signing up for Insurance
When signing up for an insurance policy, now you know several ways you can provide proof of income. Whether you’re a regular employee or you’re self-employed, there are quite a few options, which means you’ll always have a way to prove your sources of income.
So pick the ones that are easiest for you to do, and you’ll have the approval for the insurance policy you’ve applied for in no time!
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