Government Life Insurance Schemes in India

6 min read • Posted on 04 June 2024

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The Indian government is dedicated to ensuring the financial security of its citizens, particularly those with lower incomes, by offering a diverse range of life insurance schemes. In this article, we will delve into the different life insurance schemes provided by the government and examine how they can positively impact you and your family. We will provide an overview of these government insurance schemes, which directly or indirectly fall under the life insurance category, explaining their benefits and significance.

The Indian government is dedicated to ensuring the financial security of its citizens, particularly those with lower incomes, by offering a diverse range of life insurance schemes. In this article, we will delve into the different life insurance schemes provided by the government and examine how they can positively impact you and your family. We will provide an overview of these government insurance schemes, which directly or indirectly fall under the life insurance category, explaining their benefits and significance.

What is Government Life Insurance Schemes?

The government of India launched government life insurance schemes for its citizens. They have launched several government insurance schemes to improve coverage for specific group populations. Many of these schemes have been launched due to the limited availability of life insurance in the country, especially in rural areas.

At their core, government life insurance schemes are sponsored by state or central governments and are intended to provide financial protection to individuals and their families in the event of unexpected death. These government insurance schemes generally offer affordable premiums while providing adequate coverage, ensuring that individuals from all walks of life have access to life insurance. By availing of these schemes, individuals and their families gain a sense of reassurance, knowing they are financially protected in the event of an unfortunate occurrence.

List of Government Life Insurance Schemes in India

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) PMJJBY is a government insurance scheme that offers one-year term life insurance coverage (renewable). It provides a death benefit to the nominee in case of the insured's death. The scheme is available to individuals aged 18 to 50 and can be enrolled through participating banks.

Highlights of Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)

Launched in	2015
Insurance Provided By	LIC and Other General Insurers
Eligibility Criteria	Minimum: 18 Years Maximum: 50 Years
Premiums Paid	INR 330 per annum
Sum Assured	INR 2 Lakh

Pradhan Mantri Suraksha Bima Yojana (PMSBY) PMSBY is an accident insurance scheme offered by the Indian government. It provides accidental death and disability coverage at an affordable premium. This government insurance scheme is open to individuals aged 18 to 70 and can be availed through participating banks.

Highlights of Pradhan Mantri Suraksha Bima Yojana (PMSBY)

Launched in	2015
Insurance Provided By	Banks and Other General Insurers
Eligibility Criteria	Minimum: 18 Years Maximum: 70 Years
Premiums Paid	INR 12 per annum
Sum Assured	INR 1 Lakh \| INR 2 Lakh

Atal Pension Yojana (APY)
APY is a pension scheme introduced by the Government of India to provide a regular income after retirement. It is aimed at the unorganized sector and offers fixed pension amounts based on the contribution made by the individual. The scheme is available to individuals between the ages of 18 to 40.

Highlights of Atal Pension Yojana (APY)

Launched in	2015
Eligibility Criteria	Minimum: 18 Years Maximum: 40 Years
Contribution Period	Min. 20 Years
Premiums Paid	Upto INR 1K per month
Monthly Pension	Upto INR 5K

Pradhan Mantri Vaya Vandana Yojana (PMVVY)
PMVVY is a pension scheme for senior citizens aged 60 years and above. It provides a regular pension income for a period of ten years. The scheme offers guaranteed returns and is administered by the Life Insurance Corporation of India (LIC) .

Highlights of Pradhan Mantri Vaya Vandana Yojana (PMVVY)

Launched in	2017
Insurance Provided By	LIC
Eligibility Criteria	Minimum: 60 Years Maximum: No Limit
Investment Amount	INR 1.5 Lakh to INR 15 Lakh
Pension Amount	INR 1K \| INR 10K

Aam Aadmi Bima Yojana (AABY)
AABY is a social security insurance scheme targeted at rural landless households. It offers life and disability coverage to the primary breadwinner of the family. The scheme is administered through various state governments and provides financial support to the insured and their families in case of death or disability.

Highlights of Aam Aadmi Bima Yojana (AABY)

Launched in	2007
Insurance Provided By	LIC
Eligibility Criteria	Minimum: 18 Years Maximum: 59 Years
Premiums Paid	INR 200 per annum paid by the state and central government
Sum Assured	INR 30K \| 37.5K \| 75K
Documents Required	Aadhaar Card, Age Proof, Address Proof, Bank Account Details, Income Certificate, and Occupation Proof

Janashree Bima Yojana (JBY)
JBY is a group insurance scheme for people below the poverty line. It provides life insurance coverage at an affordable premium. Various state governments implement the scheme and offer financial protection to the insured's family in case of the insured's demise.

Highlights of Janashree Bima Yojana (JBY)

Launched in	2000
Insurance Provided By	LIC
Eligibility Criteria	Minimum: 18 Years Maximum: 60 Years
Group Size	Minimum 25 members
Premiums Paid	INR 200 per individual
Sum Assured	INR 30K \| 37.5K \| 75K

Pradhan Mantri Jan Dhan Yojana (PMJDY)

The Government of India launched the Pradhan Mantri Jan Dhan Yojana (PMJDY) to provide financial assistance to individuals who lack access to banking services. This scheme was launched in the year 2014, and additionally, it provides life and accident insurance coverage to insured persons.

Highlights of Pradhan Mantri Jan Dhan Yojana (PMJDY)

Launched in	2014
Eligibility Criteria	Any Indian Citizen

Conclusion

These are some of the prominent government life insurance schemes in India, designed to provide financial security and support to individuals and specific target groups in different circumstances. Ensuring that individuals from diverse socio-economic backgrounds can access the advantages offered by these government-driven initiatives is of utmost importance. Investing in a government- term insurance plan enables systematic savings. It provides crucial financial security in the event of an untimely death, assisting and safeguarding the dependents of the insured individual. It is advisable to check the eligibility criteria and terms and conditions of each scheme before opting for coverage.