Life Insurance For Indian Army: What's The Deal?

Life insurance is a crucial consideration for members of the Indian Army, given the risky nature of their jobs. While regular life insurance policies often exclude military personnel, there are specialised options available to them. The Indian Army provides life insurance to its members, with varying levels of coverage depending on rank. Officers are typically insured for a higher amount than jawans, and the coverage extends to both death and disability. In addition to the Indian Army's offerings, private insurers also provide life insurance products tailored specifically for military personnel, such as HDFC Life Shaurya and Aviva Suraksha. These plans offer comprehensive protection to service members and their families, addressing their unique needs and challenges.

Indian Army Life Insurance benefits

The Indian Armed Forces are often deployed to remote locations, away from their families, and are always at high risk of losing their lives. Given the risky nature of their jobs, insurers tend to refrain from providing life insurance coverage to military personnel. However, there are several life insurance benefits available to the Indian Army, offered by both the government and private insurers.

Army Group Insurance Fund

The Army Group Insurance Fund is an insurance fund created by the Armed Forces specifically for their staff. The premium is deducted directly from the salary of cadres, and the coverage value varies depending on an individual's rank in the army, as well as other factors such as age and health. Officers in the Indian Army can opt for life insurance coverage of up to 40 lakhs INR, while Jawans are eligible for a life cover of 20 lakhs INR. This cover provides financial relief to the families of army personnel in case of unexpected death during a war or battle, and the insured may also receive compensation upon superannuation.

Life Insurance by Private Insurers

Some of the top private insurers in India offer life insurance products specifically designed for members of the Armed Forces. These include:

• HDFC Life Shaurya: This policy is offered to military personnel and ex-servicemen, as well as members of the Indian Navy, paramilitary organisations, Border Security Force, and more. It offers long-term protection and helps with different financial requirements. The plan has a unique tracking mechanism, easy renewals, and a simple claims process.
• Aviva Suraksha: An umbrella policy with various products for the investment, retirement, and child protection needs of military personnel. It offers coverage in war-like situations and hostilities, with simplified claim settlement and minimal documentation.
• DHFL Pramerica Prahri: A life insurance cover available exclusively for military personnel, providing coverage for war and warlike situations.

Other Types of Life Insurance for the Armed Forces

In addition to the above, the Armed Forces can also avail of the following types of life insurance:

• Term Insurance Plan: The most affordable and efficient life insurance plan, offering death benefits with the option to add riders such as Waiver of Premium or Critical Illness coverage.
• ULIP (Unit Linked Insurance Plan): Provides double benefits of life cover and investments, with both death and maturity benefits, and the option to pay premiums for a limited period.
• Endowment Plan: Safeguards funds and provides a life cover along with safe returns, offering a dual advantage of safety and insurance.
• Retirement Plan: A pension/retirement plan can provide financial benefits to soldiers upon their retirement from duty.

Army Group Insurance Fund (AGIF)

The Army Group Insurance Fund (AGIF) is a welfare initiative by the Government of India for all Army personnel. It is a compulsory, contributory, self-sustaining group scheme that is run at Army Headquarters by the AGIF. The insurance fund was created without any tie-up with the Life Insurance Corporation of India (LIC) or any other insurance service providers in the country. The premium for this coverage is deducted directly from the salary of cadres.

The coverage value depends on an individual’s rank in the army, as well as other factors such as age and health. Officers in the Indian Army can opt for life insurance coverage up to Rs. 40 lakhs, while Jawans are eligible for a life cover of Rs. 20 lakhs. Jawans need to pay an annual premium of Rs. 2,000, while officers need to pay Rs. 4,000 per year. This cover provides financial relief to the families of army personnel in case of unexpected death during a war or battle. The life insured may also receive adequate compensation under this cover even during the time of superannuation.

The AGIF also provides House Building Advance loans to its members, which are disbursed by private and public sector banks. These loans have more affordable interest rates, an easy and minimal documentation process, and convenient repayment facilities. The AGI home loans can be availed at an interest rate as low as 6.90%, subject to change as per RBI guidelines. The loan amount is calculated based on the salary, the value of the house being purchased, and available subsidies. The AGIF home loan can also be used to finance home repairs.

The AGIF also provides a scholarship scheme that offers a sum of Rs. 40,000 annually for the education of wards of officers, JCOs, and ORs in twelve AWES institutions.

Private insurers offering life insurance to military personnel

Regular life insurance policies generally exclude military personnel due to the risky nature of their jobs. However, there are several top private insurers in India that have started offering products specifically designed for members of the Indian Armed Forces.

HDFC Life Shaurya

HDFC Life Insurance company offers the Shaurya plan, which is specially designed for military personnel and ex-servicemen. This long-term policy provides financial protection for the family of military personnel since their lives are at high risk. The following categories of military/armed forces personnel are eligible for this policy:

• Indian Army/Navy/Air Force/Indian Coast Guard/Territorial Army
• Paramilitary Organisations/Assam Rifles
• CRPF Members/CISF Members
• Special Frontier Force Members
• Border Security Force/Indo-Tibetian Border Police Members
• Sashastra Seema Bal Members
• Railway Protection Force Members
• National Security Guards Members
• Reserve Police Forces/State Police Forces Members
• Fire Services Members
• Civilians Defence Employees who draw salary from defence budgets
• Armed Forces Run School Employees

Aviva Suraksha

Aviva India's Suraksha is an umbrella policy that contains various products specifically designed for the benefit of Armed Forces personnel. It contains various covers for the investment, retirement, and child protection needs of military personnel. The coverage provided by this policy ensures that policyholders and their families are protected from mortality arising out of warlike situations. The claim settlement process and other requirements are simplified to ensure that the needs of the dependents are adequately covered during a time of unfortunate events.

DHFL Pramerica Prahri

This policy is offered by Pramerica Life Insurance Limited and is exclusively designed for the Armed Forces of India. This plan provides financial coverage to the army personnel's family in case of any war or warlike situation. This policy also provides multiple payout options. One great feature of this insurance company is that their sales team comprises ex-servicemen and family members of defence personnel.

Aviva India

Aviva India also provides retirement benefits for army personnel. If they buy an Aviva Income Suraksha plan, they can get a guaranteed regular monthly payout. Policyholders can also change the monthly payouts as per their needs. This policy also has tax benefits under sections 80C and 10(10D).

Pramerica Life Rakshak Smart, Pramerica Life Magnum Assure, and Pramerica Life Smart Income

These are the three variants of the Pramerica Life Prahri policy.

Life insurance for ex-servicemen

Life insurance is crucial for ex-servicemen in the Indian Armed Forces, who risk their lives to protect the country and its citizens. While regular life insurance policies may exclude military personnel due to the risky nature of their job, there are several insurance plans specifically designed for ex-servicemen. These policies provide financial security for ex-servicemen and their families, helping them meet their investment, retirement, and child education needs. Here is a detailed overview of life insurance plans for ex-servicemen in India:

Types of Life Insurance for Ex-Servicemen:

• Term Insurance Plan: This is the most affordable and efficient type of life insurance. While it only provides death benefits, ex-servicemen can add riders such as Waiver of Premium or Critical Illness coverage.
• ULIP (Unit Linked Insurance Plan): ULIPs offer dual benefits of life cover and investments. Ex-servicemen can enjoy both death and maturity benefits, with the option to pay premiums for a limited period.
• Endowment Plan: Endowment plans are ideal for ex-servicemen who want to safeguard their funds and receive safe returns, along with life cover.
• Retirement Plan: A pension or retirement plan can provide ex-servicemen with financial stability after their retirement from the Armed Forces. These plans offer retirement benefits in the form of savings plans.

Life Insurance Providers for Ex-Servicemen:

• HDFC Life Shaurya: HDFC Life has a dedicated initiative called Shaurya, which offers insurance solutions for ex-servicemen. Their team includes ex-Armed forces personnel who understand the unique needs of ex-servicemen and their families. The Shaurya plan provides long-term protection and financial solutions, such as higher education or marriage of children, and wealth creation.
• Aviva Suraksha: Aviva India offers Suraksha, an umbrella policy with various products for ex-servicemen's investment, retirement, and child protection needs. It provides coverage for mortality arising from warlike situations and simplifies the claim settlement process.
• DHFL Pramerica Prahri: This life insurance cover is exclusively designed for the welfare of ex-servicemen in India. It provides coverage for war and warlike situations, helping them and their families plan their finances effectively.
• Aditya Birla Sun Life Insurance (ABSLI) PARAKRAM: PARAKRAM is an initiative by Aditya Birla Sun Life Insurance to protect those who protect the nation. Their financial solutions are tailored to address the special needs of ex-servicemen and their families, with insurance cover even in war-like situations and hostilities. ABSLI offers various plans such as Assured Income Plus, Assured Savings Plan, and Wealth Aspire Plan.

Benefits of Life Insurance for Ex-Servicemen:

• Protection for Families: Ex-servicemen's families receive financial stability and peace of mind, knowing that their loved ones are taken care of in the event of their demise.
• Investments and Wealth Creation: Life insurance plans can offer dual benefits of life cover and wealth creation opportunities, such as ULIPs and endowment plans.
• Customized Solutions: Insurance providers often have teams that include ex-servicemen, ensuring a personalized understanding of their unique needs and lifestyle.
• Simplified Claims Process: Many insurance plans for ex-servicemen offer simplified and quick claims processes, minimal documentation, and waiver of death certificates in case of casualty in field locations.

Life insurance forsection for Indian Army personnel based in India

Life insurance is a crucial consideration for Indian Army personnel, given the risks associated with their profession. The Indian Army recognises this and provides comprehensive life insurance coverage for its staff. This insurance is intended to protect both the servicemen and their families in case ofsection for Indian Army personnel based in India.

Army Group Insurance Fund (AGIF)

The Indian Army has established the Army Group Insurance Fund (AGIF) to provide life insurance coverage for its personnel. This fund is managed and administered by the army itself, independent of external insurance providers. The coverage offered by AGIF varies based on rank, with officers eligible for higher sums insured than jawans. As of 2021, officers can avail of life insurance coverage of up to 40 lakhs Indian rupees, while jawans are covered for up to 20 lakhs rupees. The premium amount for officers is 4,000 rupees annually, and for jawans, it is 2,000 rupees per year.

It is worth noting that these coverage amounts have increased over time. In 2011, the Indian Army enhanced the AGIF coverage, raising the limit for officers to 40 lakhs and for jawans to 20 lakhs. Prior to this, officers were provided with insurance coverage of 30 lakhs, while Personnel Below Officer Ranks (PBORs) had coverage of 15 lakhs.

Private Insurers

In addition to the AGIF, Indian Army personnel can also seek life insurance coverage from private insurers. Some of the top private insurance companies in India have designed specific products for members of the armed forces, recognising the unique risks and challenges of their profession.

One such product is HDFC Life Shaurya, which offers life insurance coverage for military personnel, including ex-servicemen. This policy is available to members of the Indian Army, Indian Navy, paramilitary organisations, Border Security Force, and other civilian defence employees. HDFC Life Shaurya provides long-term protection and is designed to cater to the financial requirements of army members and their families. It offers a simplified claims process and requires minimal documentation.

Another option is Aviva Suraksha, an umbrella policy with various products tailored for the armed forces. It offers coverage for investment, retirement, and child protection needs, ensuring protection from mortality arising out of war-like situations. Aviva Suraksha also provides a simplified claims process and requires minimal documentation.

DHFL Pramerica Prahri is a life insurance policy exclusively designed for the welfare of members of the Indian Armed Forces, providing coverage for war and warlike situations.

Importance of Life Insurance for Indian Army Personnel

The nature of the Indian Army's work, including counter-insurgency operations and disaster relief efforts, exposes personnel to significant risks. Life insurance is essential to safeguarding the financial future of servicemen and their families in the event of unforeseen circumstances, including death or disability during service.

Life insurance coverage provides peace of mind and financial security, ensuring that the basic needs of the servicemen's families are met, and enabling them to focus on their duties with reduced stress and increased motivation.

Frequently asked questions