Life Insurance for Armed Forces

Various types of defence personnel life insurance are available: Air Force Life Insurance, Navy Life Insurance, Paramilitary Life Insurance, and Term Insurance for Defence Personnel. Let's understand them in detail.

Importance of Life Insurance for Armed Forces

The Armed Forces, the country's backbone in tight security, deserve to be committed to their families and pay attention to their needs. They must purchase life insurance because they are more vulnerable to death, given the nature of their jobs. Therefore, their policies are designed to offer coverage for their loved ones/families. Below are a few more important reasons why the Indian Armed Forces need Life Insurance:

• Protection for Families - Soldiers spend extended periods away from their families and constantly face life-threatening risks. In such cases, a life insurance plan ensures their loved ones remain financially secure. If anything happens to the soldier, the payout from the policy provides the family with financial stability, helping them manage expenses and maintain their lifestyle.

• Investments - As an Armed Forces member, you may not have the time to track market investments. Life insurance plans such as ULIPs and Endowment Policies offer dual benefits. Along with life cover, they help you grow your wealth over time, making it easier to meet long-term financial goals.

Types of Life Insurance for Armed Forces

Below are the various types of life insurances that the Armed Forces can avail to:

• Term Insurance Plan - Term Life Insurance is the most affordable and efficient life insurance plan for any individual. Although it only provides death benefits, you can add riders as per your suitability, like Waiver of Premium, Critical Illness etc.

• ULIP (Unit Linked Insurance Plan) - With ULIP, you get double benefits of life cover and investments in a single money. As a person from the armed forces, you get both death and maturity benefits in ULIP, and you also get the option of paying premiums for a limited period. 

• Endowment Plan - As a person from the Armed Forces, it can get difficult to keep a track of where your money goes. Therefore, an endowment plan safeguards your funds and provides a life cover along with safe returns, which acts as a dual advantage of safety and insurance in the same plan. 

• Retirement Plan - A pension/retirement plan for Armed Forces personnel can become a financial arrangement once the soldier successfully retires from his line of duty. This plan provides retirement benefits to the soldier through a savings plan.

Air Force Life Insurance

The lives of air force members are always at immense risk. Considering this, insurance companies have developed special life insurance plans for them. They are offered various options, such as term life insurance plans, endowment plans, child education funds, disability benefits, and wealth creation plans.

Navy Life Insurance

This plan is specially designed for Navy personnel. This plan provides financial coverage to the beneficiary in case the insured passes away. This plan also provides coverage for disabilities. Additionally, it provides coverage to the policyholder's family in case of war or war-like situations.

Paramilitary Life Insurance

This plan is for members of the Indian Paramilitary Force and provides coverage for all wars and war-like situations. The plans are flexible, customizable, and available in different forms, such as term life insurance, endowment, and wealth creation.

Term Insurance for Defence Personnel

Term insurance is probably the simplest and purest life insurance offered at affordable premium costs. A term life insurance plan provides financial coverage to the policyholder's beneficiary in case of the policyholder's death.  

While regular term insurance plans can serve the common people well, they may not be sufficient to provide coverage for the high-risk lives of the defence people. Term plans for defence personnel are specially designed considering the high-risk factor of their life with coverage extended to wars and war-like situations.

Insurance Coverage Offered by Private Insurers

The private insurance providers of India also offer life insurance plans for armed forces. Some of them have been listed below:

1. Aviva Suraksha

   This policy provides various options for military personnel, such as investment, retirement, child protection, and wealth creation. It is designed to provide financial coverage to the family of the army personnel in case they die in any war or war-like situation.

   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 needed. This policy also has tax benefits under sections 80C and 10(10D).

2. Pramerica Life Prahri

   Pramerica Life Insurance Limited offers this policy, which is exclusively designed only for the Armed Forces of India. This plan provides financial coverage to the army personnel's family in case of any war or a war-like situation. This policy also provides multiple payout options. One great feature of this insurance company is that its sales team comprises ex-servicemen and family members of defense personnel.

   The beneficiary can receive a lump sum benefit payable immediately upon the unfortunate death of the army personnel. They also have monthly recurring payment options that pay the beneficiary a monthly sum from the death of the army personnel until the policy term. Finally, a lump sum benefit is payable at the scheduled maturity of the policy.

   Pramerica Life Prahri provides the following three variants:

   • Pramerica Life Rakshak Smart

   • Pramerica Life Magnum Assure

   • Pramerica Life Smart Income

3. HDFC Life Shaurya

   This policy is offered by the HDFC Life Insurance company. HDFC Life Shaurya plan 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 Military/ Armed forces Personnel are eligible for this policy:

   • Indian Army/Navy/Air Force/Indian Coast Guard/Territorial Army

   • Paramilitary Organizations/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 defense budgets

   • Armed Forces Run School Employees

Wrapping It Up:

The armed forces in India risk their own lives for the country's welfare and that of its people. So, they must get life insurance policies for the financial safety of their families. This will give them peace of mind while on the war front and, consequently, provide financial support to their families if they lose their lives in service to the country.

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