Written By: Himanshu Kumar

Himanshu Kumar

Term & Life Insurance

Himanshu is a content marketer with 2 years of experience in the life insurance sector. His motto is to make life insurance topics simple and easy to understand yet one level deeper for our readers.

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Reviewed By: Bijendra Singh

Bijendra Singh

Term Insurance

Bijendra Singh with his 9 years of experience in the term insurance sector, has been instrumental in designing customer-centric sales programs. His passion towards innovation strives to achieve organizational objectives while driving sustainable growth in the competitive insurance landscape.

Updated on Jan 19, 2026 6 min read

What is Government Term Insurance?

Government term insurance is a life insurance plan that offers a death benefit to the insured individual’s family in case of the sudden demise of the policyholder during the policy term. Term insurance plans offered by the state or central government to the citizens of India fall under the category of government term insurance.

Government-term insurance plans are available to customers nationwide with standard sum assured options, rider benefits, and coverage. With a range of best term insurance plans, the government of India is aiming to provide its citizens with basic access to the best government term insurance plan coverage at affordable premiums.

Top Government Term Insurance Plans in 2026

indiaWe have mentioned below the term plans offered by various government term insurance companies in India in 2026, along with their features:

1. Aam Aadmi Bima Yojana

   A government term insurance scheme that offers social security to insured individuals by providing life insurance coverage at affordable premiums. The policy was designed 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 Rs 1,00,000.

   Benefits of Aam Aadmi Bima Yojana

   • Provides coverage in case of natural death, accidental death, and partial or permanent disability due to an 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.

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. An Aadhar card would be the primary KYC for the bank account.

   Benefits of Pradhan Mantri Suraksha Bima Yojana

   • The plan offers insurance to every individual in the country.
   • Insured individuals are provided Rs 1 Lakh in case of permanent partial disability.
   • A coverage amount of Rs 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.

3. Pradhan Mantri Jeevan Jyoti Bima Yojana

   Pradhan Mantri Jeevan Jyoti Bima Yojana is a government term insurance launched in 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.

   Benefits of Pradhan Mantri Jeevan Jyoti Bima Yojana

   • 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.

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 of Pradhan Mantri Jan Dhan Yojana

   • In case the insured individual passes away, the legal nominee/heir is eligible for a death benefit of Rs 30,000.
   • Pradhan Mantri Jan Dhan Yojana also provides accidental death benefits of Rs 1,00,000 (enhanced to Rs 2 Lakhs for accounts opened after 28.8.2018).
   • An overdraft facility is available up to Rs 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.

Conclusion

Multiple govt. Term insurance plans are available for individuals across different economic strata, helping to strengthen the overall financial status of the country. All individuals from across socioeconomic backgrounds must receive the benefits provided by these government-led initiatives. Investing in the government 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.

If you are looking for the best government term insurance plan in 2026, you can visit PolicyX.com or call us at 1800-420-0269. We offer No Spam, No Gimmicks, and Only Expert Insurance Advice, and help you choose the government term insurance companies in India.

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