Home / Life Insurance / Articles / Life Insurance General / Government Life Insurance Schemes

Government Life Insurance Schemes

Q: Can a housewife get insurance?

Can a housewife get insurance? A term insurance for housewife can provide financial security to their family. It provides a lump sum payment in the event of the housewife's untimely death, which can be used to pay expenses, settle debts, or contribute to the children's secure future.

TeamAckoDec 20, 2024

With a range of insurance schemes on offer, the Indian government is committed to providing financial security to its citizens, especially those on the lower side of the income span. In this article, you will explore the various life insurance schemes offered by the government and how they can benefit you and your family. You will get an overview of these government insurance schemes falling under the life insurance category.

Govt

Contents

What is Public Life Insurance?
Government Insurance Companies
Types of Government Life Insurance Schemes in India
Explore ACKO Life Flexi Term Plan
- Key Benefits:
How to Choose the Right Government Life Insurance Policy?
Parameters Affecting Government Life Insurance Premium
How Can You Claim Against a Government Life Insurance Plan?
How to Calculate Government Life Insurance Premiums
Wrapping It Up
Frequently Asked Questions

What is Public Life Insurance?

Public Life Insurance refers to schemes launched by the government for its citizens. The Indian government has implemented several life insurance schemes through state or central-government-sponsored insurance companies providing financial security to individuals and their families in the event of unforeseen death. These initiatives aim to increase the accessibility of life insurance, particularly in rural areas.

Governments typically offer Life Insurance schemes that provide a sizable sum assured at an affordable rate to ensure that all segments of society have access to life insurance. They provide peace of mind to individuals and their families, knowing they are financially protected in an unfortunate event.

Government Insurance Companies

Under the Insurance Act of 1956, 243 companies combined to establish LIC of India on September 1st, 1956. It functions by the LIC Act of 1956, the Insurance Act of 1938, and other laws. LIC operated 2048 branch offices, 113 divisional offices, 8 zonal offices, and numerous more offices throughout India as of March 31, 2016. Here are some of the govt Insurance companies you must know:

The New India Assurance Company Limited

Sir Dorabji Tata established the business on July 23, 1919, and it was nationalised in 1973 through a merger of Indian businesses. As of March 31, 2016, the company employed 18783 people in 2329 offices. With more than 170 products that cover practically every area of the general insurance market, the company offers insurance services to its clients.

United India Insurance Company Limited

As of March 31, 2016, the company employed 16345 people throughout 2080 offices. The business offers insurance services to clients in practically every general insurance market category. The company has Rs. 200 crore in authorised capital and Rs. 150 crore in paid-up equity capital.

The Oriental Insurance Company Limited

The company employs 13923 people, and it has 1924 offices nationwide. The business serves practically every general insurance market segment by offering insurance services to its clients. The company has Rs. 200 crore in paid-up equity capital and authorised capital.

Types of Government Life Insurance Schemes in India

Here’s an overview of different government insurance schemes in India.

1. Janashree Bima Yojana (JBY)

The Government of India launched the Janashree Bima Yojana, also known as JBY, in association with Life Insurance Corporation (LIC) in the year 2000. This government insurance scheme provides life insurance coverage to people who cannot pay for expensive insurance policies. The JBY scheme offers life insurance protection to individuals belonging to certain occupational groups and their families. These include rural and urban poor people living below the poverty line, landless labourers, street vendors, weavers, craftspersons, employed women, self-employed persons, and other economically weaker sections of society.

Eligibility Criteria

People must be between the ages of 18 and 59 and be members of a vocational group or occupation approved by the nodal agency. They should also have a minimum membership number of 25 people and be just above or below the poverty level.

Features

The scheme provides a sum assured of ₹30,000 in case of death due to natural causes and ₹75,000 in case of death due to accidental causes. The beneficiary will also be paid ₹75,000 in case of total permanent disability. And ₹37,500 if the policyholder loses an eye or limb in an accident.

How to Buy JBY Policy

You can contact any designated agencies registered under the scheme, such as Self-Help Groups (SHGs) or Non-Governmental Organisations (NGOs).
You must submit the required documents and pay the premiums, which are typically very low.
You will receive a policy document once your application is processed and approved.

It's important to note that JBY is primarily designed for individuals with limited financial resources, particularly low-income sectors belonging to the 45 named occupational groups, including Handicraft Artisans, Handloom and Khadi Weavers, Lady Tailors, Carpenters, Auto Drivers and Salt Growers.

2. Pradhan Mantri Jan Dhan Yojana (PMJDY)

The Indian Government launched the Pradhan Mantri Jan Dhan Yojana (PMJDY) scheme in 2014 to help people who don't have access to banking services. The main goal of the scheme is to provide these services to those who are underbanked or unbanked. Additionally, the scheme offers life and accidental insurance to its account holders.

A. Eligibility Criteria

A person who opens a bank account for the first time using a RuPay card between August 15, 2014, and January 26, 2015. The person should normally be between the ages of 18 and 59 and the head of the household or an earner.

B. Features

A life insurance coverage of ₹30,000 is offered to eligible account holders. In addition, individuals who meet certain requirements are eligible for ₹1 lakh in accidental insurance coverage, which provides financial security in the event of accidental death or disability.

C. How to buy the policy

To avail of these benefits, follow these steps:.

Visit any bank branch or Business Correspondent (Bank Mitra) outlet.
Provide the necessary documents to open a PMJDY account.

3. Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)

The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a life insurance program initiated by the Indian government in 2015. Its goal is to provide reasonably priced life insurance coverage for all Indian citizens. The policy is renewable on an annual basis and provides a one-year term life insurance policy with coverage for death due to any reason.

Eligibility Criteria

The scheme covers eligible individuals between the ages of 18 and 50. The candidate needs to have a personal bank or post office account.

Features

₹2 lakhs in case of death due to any reason. The Life Insurance Corporation of India (LIC) and other life insurance companies have partnered with banks to offer this scheme. The annual premium for this policy is very affordable at just ₹330.

How to buy the policy

To buy Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), follow these steps:

Visit any bank branch and fill out the application form.
Submit the necessary documents, such as the nominee's name, relation, age, and Aadhaar number.
This scheme can also be accessed through the participating bank's net banking facilities. The annual premium is debited from the account holder's bank account on or before 31 May every year.

4. Pradhan Mantri Suraksha Bima Yojana (PMSBY)

Pradhan Mantri Suraksha Bima Yojana offers accidental death and disability coverage to people in India. The scheme was introduced by the Indian government in 2015 to provide affordable insurance to the underprivileged and is administered by banks and insurance companies. The annual premium for PMSBY is ₹12 and is auto-debited from the policyholder's bank account. The coverage period is from 1 June to 31 May next year. The scheme aims to increase the number of insured people in India and has been received positively since its launch.

Eligibility Criteria

Individuals who have a bank account and are between the ages of 18 and 70 are eligible, but they must link their Aadhaar card to the banking institution.

Features

Give the poor access to reasonably priced insurance, and banks and insurance providers run it. The policyholder's bank account is automatically debited for the ₹12 annual premium for PMSBY.

How to buy the policy

To purchase PMSBY, follow these steps:

Approach any participating bank or an insurance company and fill out the application form.
Submit the necessary documents, such as the nominee's name, relation, age, and Aadhaar number.

Explore ACKO Life Flexi Term Plan

If you're seeking a life insurance plan that offers both flexibility and comprehensive coverage, The ACKO Life Flexi Term Plan is can be a perfect solution. Tailored to meet your unique needs, this pure, non-linked term plan provides you with the freedom to customise your coverage. With affordable premiums, flexible payout options, and a hassle-free claim process, it ensures that you and your loved ones enjoy lasting peace of mind.

Key Benefits:

Adaptable Sum Assured: Choose the sum assured that best fits your needs.
Flexible Policy Tenure: Select the policy term that aligns with your life goals.
Affordable Premiums: Get large coverage at budget-friendly rates.
Will Creation Service: Plan ahead with the added benefit of will creation assistance.
Flexible Payout Options: Choose from a variety of payout options to suit your financial planning.
Easy Claim Process: Simplified claims for a stress-free experience when you need it the most.

How to Choose the Right Government Life Insurance Policy?

Research about different govt insurance schemes

To research various government life insurance schemes available in India to decide which one aligns best with your needs and preferences.

Understand your needs

Understanding your financial goals, dependents, and future needs is crucial in selecting the right government life insurance policy. Comparing rates and features can help you narrow down your options effectively.

Choose affordable premiums

Evaluating the affordability of premiums is a significant factor. Ensure premiums fit within your budget for long-term financial planning.

Understand the policy features

Assess the features of the policy, such as coverage options, benefits, etc., to ensure you choose the right one.

So, you can compare and buy the best government life insurance plan by checking these details.

Parameters Affecting Government Life Insurance Premium

The following are the parameters to consider when choosing a government policy:

Age

As you age, the risk associated with life insurance increases, which leads to higher premiums. Therefore, making an early purchase can result in significant cost savings.

Lifestyle

Individuals who live high-risk lives typically pay higher premiums for life insurance. This is true for persons who smoke, have high-risk occupations, enjoy adventure sports, and so forth.

Amount of Coverage

The amount of risk, liability, or possible loss that insurance protects is known as insurance coverage. It aids people in recovering from monetary losses brought on by events like auto accidents, property damage, or unforeseen medical problems.

Policy type

The type of life insurance also has a significant impact on premiums. As term insurance like Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) only offers temporary coverage, their premiums are lower. Additionally, the premium often remains constant over the term. Permanent plans are more expensive and have no expiration dates.

How Can You Claim Against a Government Life Insurance Plan?

You can claim your government life insurance plan with these steps:

Notifying the insurer and informing them about the demise of the policyholder
Requesting and obtaining the claim forms
Filling out the form and completing the claim
Collecting and submitting the required documents, including the policyholder's death certificate
Verifying the claim and, after approval, following up in case of delays

How to Calculate Government Life Insurance Premiums

You can calculate the government life insurance plan by following these steps:

Determining the coverage amount
Understanding the premiums
Calculating the premium using the rates and tables
Making the payment through an authorised platform

Wrapping It Up

The Indian government has rolled out various state and central-sponsored life insurance schemes, each designed to safeguard the future of its citizens. Your ability to make a well-informed decision depends on familiarity with these options. Understanding the details of government life insurance plans is crucial before purchasing.

Frequently Asked Questions

Here’s a list of common questions and answers related to Government-backed life insurance schemes.

Is it possible to purchase government insurance online?

Yes, it’s possible to purchase a few government-backed insurance plans online.

What is the sum insured in the case of government medical insurance plans?

The sum insured varies based on the plan terms and coverage benefits. Thus, check the sum insured for each plan.

Are there any limitations of government insurance plans?

Generally, government insurance plans do not cover cosmetic procedures. Before purchasing a policy, consult the policy document for the covered medical schemes and other policy limitations.

Who is eligible for these government life insurance schemes?

Eligibility criteria can vary depending on the specific scheme, but typically, individuals between the ages of 18 and 50 are eligible to apply. Some schemes may have additional requirements related to income or employment status as well.

Are there any tax benefits associated with these government life insurance schemes?

Yes, premiums paid towards these schemes are eligible for tax deductions under Sec 80C, up to a certain limit. Additionally, benefits received from these schemes may be tax-exempt under Section 10(10D) of the Income Tax Act. However, it's always best to consult a tax professional for specific advice related to your personal situation.

Can a housewife get insurance?

A term insurance for housewife can provide financial security to their family. It provides a lump sum payment in the event of the housewife's untimely death, which can be used to pay expenses, settle debts, or contribute to the children's secure future.

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on industry experience and several secondary sources on the internet, and is subject to changes.