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Government Term Life Insurance Schemes
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Government Term Life Insurance Schemes

The government of India constantly works on the welfare and financial growth of the citizens of India. All governments worldwide provide their citizens with certain health and life insurance plans that can benefit them. Government-term insurance plans are available to customers nationwide with standard sum assured options, rider benefits, and coverage. With a range of term insurance plans government of India is aiming to provide its citizens with basic access to life insurance coverage at affordable premiums. In this article, we will explore all the government-term insurance plans available to the citizens of the country along with their basic features and benefits.

What Is Government Term Insurance?

Government term insurance offers a death benefit to the insured individual's family in case of the sudden demise of the policyholder. Term insurance plans offered by the state or central government to the citizens of India fall under the category of Govt Term Insurance.

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Government Term Insurance Plans Overview

We have mentioned below various government-term insurance plans that provide life coverage to your family along with various other features:

  1. Aam Aadmi Bima Yojana

    A government-sponsored scheme that offers social security to insured individuals by providing life insurance coverage at affordable premiums. The policy was designed in order to provide security to the employees of the unorganized sector of India, that is the blue-collar employees. The insured individual availing this policy must belong to a family below the poverty line with an annual income not exceeding INR 1,00,000.

    Launched

    2007

    Insurance Provider

    LIC

    Eligibility

    Minimum: 18 Years
    Maximum: 59 Years

    Premiums Paid

    INR 200 per annum paid by the state and central government

    Sum Assured

    30,000 | 37, 500 | 75,000

    Documents Required

    Aadhaar Card, Age Proof, Address Proof, Bank Account Details, Income Certificate, and Occupation Proof

    Benefits Offered

    • Provides coverage in case of natural death, accidental death, and partial or permanent disability due to accident.
    • Offers education coverage for dependent children in case of the insured individual's death.
    • The plan is available at affordable premiums and is subsidized by the government making it easy to access for individuals across economic strata.
    • Government-term insurance like Aam Aadmi Bima Yojana offers coverage against natural calamities like floods, earthquakes, and more.
    • The insurance plan offers special coverage benefits for women including maternity benefits.

    Exclusions

    The exclusions under this scheme are mentioned below:

    • Aam Aadmi Bima Yojana does not cover individuals who are employed in organized sectors such as government employees or those who work with organizations offering a provident fund.
    • The plan does not cover individuals who are income taxpayers.
    • The plan does not cover individuals who are already covered under other schemes.
    • The plan does not cover individuals over the age of 59 years.
  2. Pradhan Mantri Suraksha Bima Yojana

    The Pradhan Mantri Suraksha Bima Yojana is a government-term insurance plan available for all Indian citizens between the ages of 18 to 70 years with a bank account who give their consent to join or enable auto-debit on or before May 31st. Aadhar card would be the primary KYC for the bank account.

    Launched

    2015

    Insurance Provider

    Banks and other General Indian Insurance Companies

    Eligibility

    Minimum: 18 Years
    Maximum: 70 Years

    Premium Paid

    INR 12

    Sum Assured

    1 L | 2 L

    Benefits Offered

    • The plan offers insurance to each and every individual in the country.
    • Insured individuals are provided INR 1 Lakh in case of permanent partial disability.
    • A coverage amount of INR 2 Lakhs is provided in case of death and permanent and total disability to insured individuals.
    • The plan covers death, total and permanent loss of sight in both eyes, loss of both hands, loss of both legs or loss of one eye and one limb.
    • The plan is available at a small annual premium fee of Rs. 12 per annum which indicates that it is designed for the rural population.

    Exclusions

    • Suicide Exclusion
    • In case the accident leads to damage to hands, eyes, or legs that can be treated and restored then your claim will not be processed.
  3. Pradhan Mantri Jeevan Jyoti Bima Yojana

    Pradhan Mantri Jeevan Jyoti Bima Yojana is a government term insurance was launched in the year 2015 by the Indian government for the security of Indian citizens. The objective of the plan is to provide an affordable life insurance solution with eligibility between 18 to 50 years. The plan is available by providing minimal annual premiums to individuals across all income groups.

    Launched

    2015

    Insurance Provider

    General Insurers

    Eligibility

    Minimum: 18 years
    Maximum: 50 Years

    Premiums Paid

    INR 330/- per annum

    Sum Assured

    INR 2 L

    Benefits Offered

    • In case of the unfortunate demise of the insured individual, the nominee will receive a sum assured of 2 Lakhs.
    • The insurance policy offers an annual renewal benefit extending the benefits offered by the plan till the age of 55 years.
    • The plan offers automated premium payment when integrated with your bank account.
    • Insured individuals are eligible for tax benefits when purchasing the policy.
    • Insured individuals have the option to exit the policy temporarily and rejoin later.

    Exclusions

    • The insurance plan does not cover non-accidental death for the first 30 days after enrolling.
    • Suicide exclusion.
    • Intentional self-injury.
    • Breach of law.
  4. Pradhan Mantri Jan Dhan Yojana

    The government of India launched the Pradhan Mantri Jan Dhan Yojana in order to provide financial support to individuals who do not have access to banking services. The policy was launched in the year 2014 for individuals who are underbanked and it additionally provides life and accidental insurance to the insured individuals.

    Benefits Offered

    • In case the insured individual passes away, the legal nominee/heir is eligible for a death benefit of INR 30,000.
    • Pradhan Mantri Jan Dhan Yojana also provides accidental death benefits of INR 1,00,000 (enhanced to INR 2 Lakhs for accounts opened after 28.8.2018).
    • An overdraft facility is available up to INR 10,000 for eligible account holders.
    • One basic savings account is opened for an unbanked individual.
    • PMJDY accounts are eligible for Direct Benefit Transfer, Pradhan Mantri Jeevan Jyoti Bima Yojana, Pradhan Mantri Suraksha Bima Yojana, Atal Pension Yojana, and more.

    Exclusions

    • Suicide Exclusion
    • Breach of law
    • Intentional Self Injury

Conclusion

There are multiple government term plans that are available for individuals across different economic strata aiding in strengthening the overall financial status of the country. It is essential that all individuals from across social-economic backgrounds receive the benefits provided by these government-led initiatives. Investing in the govt term insurance plan will not only provide structured savings but also offer financial security in case of the unfortunate demise of the insured individual and aid in supporting their dependents.

Government Term Life Insurance Schemes: FAQs

1. What are government term insurance plans?

The Government term insurance plans are financial tools designed in order to safeguard individuals with low wages and families living below the poverty line. All these plans offer protection against accidental death and permanent and partial disability safeguarding the future of families.

2. Can government term insurance be purchased online?

Yes, many government term plans are available online and can be purchased via online platforms.

3. What are the sum insured options available under the government term insurance?

The various sum insured options available under the government plans are mentioned in the details provided above. In general, the sum insured options range between INR 30,000 to 2,00,000.

4. What are the exclusions of Govt term plans?

The exclusions for government term plans are as follows:

  • Suicide exclusion
  • Breach of law
  • Injuries or death due to substance abuse

5. Do insured individuals get tax benefits under the government term plans?

Government term plans not only provide insurance coverage to policyholders but also provide them with tax benefits under section 80C and section 10 (10D) as per the Income Tax Laws.

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Bindiya Sinha

Written By: Bindiya Sinha

Bindiya is a seasoned content writer specializing in keeping readers acquainted with the insurance industry, term insurance developments, and life insurance sector shifts. With an experience of 3 years in insurance, Bindiya ensures that her readers stay well informed with the insurance developments and factually correct information.