Government Life Insurance Schemes in India 2025

Did you know that nearly 25% of urban Indians still do not have life insurance? This leaves many families financially vulnerable in case of unexpected loss. The situation is even more concerning in rural India, where life insurance ownership remains just one-third of urban levels.

That’s why the government has introduced several low-cost, easy-to-access life insurance schemes that act as a safety net, especially for low-income households, rural residents, and public sector employees.

For this guide, we reviewed official government notifications, IRDAI circulars, EPFO guidelines, and scheme brochures to break down the benefits, eligibility, and claim processes of popular plans.

By the end of this article, you’ll know exactly which government schemes you qualify for, how they work, and why you may still need a personal term plan to secure your family’s long-term future.

Still confused about which life insurance plan is the most suitable option for your needs? WhatsApp us or book a free call to get advice from our IRDAI-certified advisors now.

List of Popular Government Life Insurance Plans Available in India

1) Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)

A government-backed group term life insurance designed to provide affordable financial protection (₹2 lakh cover) to families in case of death, especially targeting low-income and unorganized sector workers, with the bank or post office serving as the master policyholder.

Who is Eligible:

Indian residents aged 18 to 50 with a bank/post office account can continue to cover up to age 55 if they joined before 50.

What's Covered:

The nominee receives ₹2 lakh if the insured passes away during policy tenure, whether the cause is natural or accidental. This payout will be in addition to any other life insurance policy’s payout that the person’s nominees may receive.

What's Not Covered:

Death from any non-accidental cause within the first 30 days is not covered. However, accidental death is covered from day one.

How Does it Work:

1 year cover (June 1 to May 31), renewable annually; ₹436 per year auto-debited from bank. Enrollment via bank or post office; no medical exam required. Simple claims process via submitting a claim and death proof.

2) Postal Life Insurance (PLI)

Oldest government life insurance targeted at the government/public sector and certain professional groups, focusing on higher sum assured and savings-oriented plans.

Who is Eligible:

Central/state government employees, defense and paramilitary forces, PSU staff, local bodies, government-aided institutions, RBI, public sector banks, autonomous bodies, and specified professionals (doctors, engineers, lawyers, etc.).

What's Covered:

Wide range of plans (endowment, whole life, child policies, etc.) with sum assured of up to ₹50 lakhs. Options for loan and group cover are also available, and bonuses are paid on maturity or death.

What's Not Covered:

Exclusions depend on the specific PLI product, generally including suicide during the first year, fraudulent claims, and non-payment of premium.

How Does it Work:

Premium payment depends on age, plan type, and sum assured. Eligible professionals and employees can apply online or at post offices to get regular updates and claim bonuses.

3) Rural Postal Life Insurance (RPLI)

Affordable insurance for rural residents to extend government-backed life insurance benefits to underserved populations.

Who is Eligible:

Rural population, including government/private employees, military forces, civic body employees, and families.

What's Covered:

Multiple plans like whole life, endowment, anticipated, and child policies with cover up to ₹10 lakh.

What's Not Covered:

Same as the PLI scheme.

How Does it Work:

Policy options offer a choice of plans to fit needs. Premiums vary; schemes can be bought via local post offices with easy claim/payout processes.

4) Employees’ Deposit‑Linked Insurance Scheme (EDLI)

Life insurance for EPFO members, providing lump sum benefits to dependents if an EPF subscriber dies during service.

Who is Eligible:

All EPF-registered employees in organizations with 20+ staff. The maximum benefit is capped at ₹7 lakh, with salaries up to ₹15,000, but EDLI covers all EPF members regardless of salary.

Note: The ₹15,000 figure is used for calculating the maximum benefit, not for determining eligibility.

What's Covered:

Death due to any cause (at work or elsewhere) while in service. The payout is 30 times the average monthly salary (capped at ₹15,000) for the last 12 months, plus an additional bonus of ₹2.5 lakh.

What's Not Covered:

There are no general exclusions under the EDLI scheme for death caused by suicide, intoxication, or hazardous activities. While an employer's alternative group insurance might have these exclusions, the government-mandated EDLI does not..

How Does it Work:

No registration is required, as the employer makes the contribution, and claims are processed by the EPFO upon submission of Form 5 IF, the death certificate, and nominee proof..

Note: As of February 2025, new rules ensure a minimum benefit of ₹50,000 for members who die within one year of service. The benefit also applies if the employee dies within six months of their last contribution, as long as they were still on the company's payroll.

5) Central Government Employees Group Insurance Scheme (CGEGIS)

Mandatory group insurance and savings for all regular central government employees, providing financial support on death/retirement.

Who is Eligible:

All regular central government staff.

What's Covered:

Death in service (sum assured varies by employee group), savings component paid on retirement.

What's Not Covered:

Not available to some re-employed defense personnel who are already insured under armed forces schemes.

How Does it Work:

Monthly subscription deducted from salary (varies by group/level of employee). On death, the nominee gets an insurance amount; on retirement, the employee gets accumulated savings.

6) Army Group Insurance Fund (AGIF), Army Postal Life Insurance (APLI), and Defense Salary Packages (DSPs)

Special Postal Life Insurance covers for armed forces and defense personnel, offering tailored benefits and flexible payouts.

Who is Eligible:

All ranks in the army, navy, air force, paramilitary services, BSF, CISF, Assam Rifles, and the defense civilian staff; eligibility for premiums on salary deduction.

What's Covered:

Sum assured from ₹20,000 to ₹20 lakh; includes term plans and other options, coverage for war/accident, and lump-sum payment upon death in service. Some plans may include additional financial benefits for dependents.

Quick Note: The actual sum assured for group insurance is much higher and varies by rank and service. For example, under the Army Group Insurance scheme, life cover can be ₹50 lakh for officers and ₹25 lakh for Junior Commissioned Officers (JCOs)/Other Ranks (ORs).

What's Not Covered:

General insurance exclusions such as suicide, fraud, non-payment, and deaths outside the policy scope.

How Does it Work:

Post offices or APS units do not handle the application process for mandatory group schemes like AGIF. Instead, personnel are enrolled automatically and contributions are deducted directly from their pay.

How to Apply for Government Life Insurance?

To apply for Government life insurance schemes in India, eligibility is essential, and most schemes are based on employment status or group membership, such as being a government employee, EPF subscriber, or account holder in a bank or post office. Entry into these schemes is usually automatic for eligible members, with applications facilitated through institutions, employers, or local offices.

Here’s a step-by-step guide to apply for government life insurance schemes in India: 

• Eligibility Criteria: Must meet specific age, occupation, or group membership conditions (e.g., government or PSU employee, rural resident, EPF subscriber, bank account holder).
• Automatic Enrollment: For schemes like EDLI and CGEGIS, enrollment happens automatically upon joining EPFO or a government job, with monthly premiums deducted from salary.
• For Bank or Post Office Schemes (e.g., PMJJBY, PLI, RPLI):
• Applicants need to submit a simple enrollment form at a bank, post office, or employer’s office (physical or online).
• Basic KYC (ID proof, account details, nominee) required.
• Auto-debit of the annual premium from the linked account ensures continuous coverage.
• For Defense and Army Insurance Plans: Personnel apply via APS or designated defense offices; forms and premiums are managed through salary deduction or direct payment.
• Claims and Renewal: Most schemes renew automatically if eligibility and premium payments continue; claims require submission of death/maturity documents to the sponsoring office.

Government life insurance aims for inclusivity and minimal paperwork, making life cover accessible for eligible groups.

How to File a Claim for a Government Life Insurance Policy?

STEP 1: Inform the Insurance Company

Notify the insurer or dedicated employee assistance office about the claim. The sooner you do it, the better. This can be done online, by visiting the nearest branch, or through the customer support helpline of the selected insurer. The nominee should ideally inform the insurer within 24–48 hours in case of death claims. 

STEP 2: Submit the Required Documents

After informing the insurer, you will be asked to submit a set of documents. Here’s what is usually required:

For Death Claims: 

• Death certificate (original or attested) 
• Policy document Claim form (available on the insurer’s website or at the branch) 
• Identity & address proof of the nominee 
• Medical records (if applicable) 
• FIR/postmortem report (in case of accidental death)

For Maturity Claims: 

• Original policy document 
• Discharge form (provided by the insurer) 
• ID and address proof 
• Bank details for payout

Remember: Many schemes, such as Army Group Insurance, pay a maturity benefit (the accumulated savings portion) only upon retirement or separation from service, not as a standard, in-service claim.

STEP 3: Claim Verification by the Insurer

The insurer begins verification after you submit the required documents. They may:

• Cross-check all medical records
• Validate nominee details
• Investigate in case of accidental or early death claims

STEP 4: Claim Decision & Payout

If everything is in order, the insurer will approve your claim and also release the payout. As per IRDAI guidelines, a claim must be settled within 15 days of receiving documents.

If further investigation is needed, the process should be completed within an additional 30 days (total 45 days), and the decision communicated.

Note: In case there is a delay in settling claims on the insurer’s part (i.e., the insurer pushes the window of time pre-set by the IRDAI for settling life insurance claims), the provider is liable to pay interest (pre-decided by the IRDAI and mentioned in the policy document) on the base sum assured to the claimant.

STEP 5: Payment to the Nominee/Policyholder

The approved claim amount will be directly credited to the nominee's or policyholder’s bank account.

You can easily track the status of your claim via:

• Insurer’s official website/app
• Customer care helpline
• Email/SMS alerts

Documents Required for the Life Insurance Claim Process

As discussed above, you need the following documents to ensure a smooth claim process:

• Death Certificate: An official proof of the policyholder's demise.
• Policy Document: An original policy or a copy.
• Identity Proof: Aadhaar card, PAN card, etc.
• Medical Records: In case of death due to illness.

However, the specific requirements for documents may vary by insurer.

How to Choose the Right Government Life Insurance Policy? (Ditto’s Take)

Government life insurance policies are often free or come at a very low cost, providing basic coverage to reach large sections of the population with minimal barriers. They serve as excellent safety nets, especially for vulnerable groups and those with limited access to private insurance.

Choosing the right government life insurance policy depends largely on your eligibility and specific needs, but Ditto emphasizes an important perspective: while government schemes like PMJJBY or EDLI are generally affordable and accessible, they do not replace the need for a personal term insurance plan.

This plan type is fully customizable and allows you to choose the coverage amount, tenure, riders, and beneficiaries based on your unique financial goals and family requirements. You have complete control over the policy features and renewal terms, which government schemes lack.

Why Choose Ditto for Life Insurance?

At Ditto, we’ve assisted over 7,00,000 customers with choosing the right term insurance policy. Here’s why customers like Ajay love us:

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Final Thoughts 

Government life insurance schemes in India play a key role in ensuring financial security for citizens, especially those from lower-income groups, rural areas, and employees in public service. While these schemes offer affordable and hassle-free coverage, here are some takeaways to consider: 

• These policies are primarily designed as social security measures, offering limited sums assured and fixed benefits.
• They are excellent as a baseline layer of protection, especially for vulnerable groups or first-time policyholders.
• For long-term financial security and higher coverage, individuals should also invest in a personal term insurance plan, which provides flexibility, customization, and adequate protection for family goals.

Still confused about which life insurance plan is the most suitable option for your needs? WhatsApp us or book a free call to get advice from our IRDAI-certified advisors now.

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