Every individual must have life insurance coverage no matter what his or her profession is. Insurers often tend to refrain from providing life insurance coverage to individuals who are in relatively risky jobs. If an individual’s profession involves a higher level of risk associated with injuries or death, it may become difficult to find a good life insurance plan. Police personnel and even members of the Armed Forces often face such difficulties. While it could be challenging for them to get coverage under a regular life insurance coverage, they may subscribe to plans specifically designed for them. 

Why Do Armed Forces Personnel Need insurance?

Defence Personnel should opt for an insurance plan because it provides comprehensive protection to him/her and his/her family. The requirements of the servicemen are carefully studied and insurance solutions are designed according to the specific needs of every servicemen. Insurance plans for Defence Personnel provide insurance protection during war & war like situations.

Army Group Insurance Fund

This insurance fund is specially created by the Armed Forces for their staff. A similar insurance fund is also offered by the navy and the air force for their respective staff members. This 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 could vary depending on an individual’s rank in the army combined with certain other factors such as age, health aspects, etc.

At present, the officers in the Indian Army can opt for life insurance coverage up to Rs. 40 lakhs. Jawans are eligible for a life cover of Rs. 20 lakhs. To avail this coverage from the Army, Jawans need to pay a premium of Rs. 2,000 per year. Officers need to pay a premium of 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.

Armed Forces Insurance by Private Insurers

Regular life insurance policies generally exclude military personnel and even police personnel due to the risky nature of their jobs. Some of the top private insurers in the market, however, have started offering products designed specifically for members of the Armed Forces. Below-mentioned list provides a short description about the life insurance covers available in the market for Armed Forces:

  1. HDFC Life Shaurya: HDFC offers this life cover that’s specifically for military personnel as well as ex-servicemen in the country. HDFC’s staff is known to carry an in-depth understanding of military personnel and their lifestyle. This policy can be used for the long-term protection of army members specifically to help with their different financial requirements. Apart from the members of the Indian Army, other service personnel including Indian Navy, Paramilitary organisations, Border Security Force, Fire Services, employees of schools run by Armed Forces, etc., may also avail benefits under this policy.

  • Eligibility - Following servicemen can avail protection under Shaurya - Insurance Solutions for Indian Defence/ Armed Forces Personnel (includes U.N. Missions):

    • Indian Army

    • Indian Navy

    • Indian Air Force

    • Indian Coast Guard

    • Territorial Army

    • Assam Rifles

    • Paramilitary Organizations

    • CRPF

    • CISF

    • Special Frontier Force

    • Border Security Force

    • Sashastra Seema Bal

    • Indo-Tibetian Border Police

    • Railway Protection Force

    • Employees of Schools Operated by the Armed Forces

    • National Security Guards

    • Reserve Police Forces

    • State Police Forces

    • Fire Services

    • Any other civilian defence employees who receive their salaries from the defence budget

  • Benefits – Following are some of the benefits offered by HDFC Life Shaurya 

    • Tracking System - The plan has a unique tracking mechanism, which ensures that the Company is in touch with the policyholder even if he/she moves to a new location.

    • Easy Renewals - It is very easy to make renewal payments. Servicemen can make payments via Net Banking, SI-ECS, Branch, Auto Debit or a website which has the client login option.

    • After-sales Service - All the policyholders can enjoy personalized after sales service. The team providing this service is comprised of ex-servicemen.

    • Easy to Avail - Defence Personnel do not have to travel anywhere to avail an insurance plan under the Shaurya initiative. They can apply for a plan easily at any of the bank’s 429 branches that are spread across the country.

    • Easy Claims Process - The claims process is very simple and requires minimal documentation. In case of casualty on field, then no death certificate is required and claim is processed based on the initial report and DP letter written by either the Commanding Officer or someone at an equivalent post.

  • Reasons to buy HDFC Life Shaurya Plan - Defence personnel should opt for an insurance plan under the Shaurya initiative of HDFC Life because it provides comprehensive protection to him/her and his/her family. HDFC Life is a well-known life insurance Company and it has a presence all over India, which makes it easy to avail insurance policies offered by it from any part of the country. To ensure complete understanding of the requirements of the servicemen, the company has a dedicated team of professionals with defence background and ex-servicemen working on the Shaurya initiative. The life insurance plan caters to specific needs of every serviceman. Insurance plans under Shaurya are transparent, simple and pocket friendly. The best part about Shaurya plans are that they provide insurance protection during terrorism, war like situation and hostilities.

  1. Aviva Suraksha: Suraksha is an umbrella policy that contains various products specifically designed for the benefit of Armed Forces. It contains various covers for the investment, retirement, and child protection needs of the military personnel in the country. 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 event.

    • Benefits of Aviva Suraksha

      • Insurance cover in war-like situations & hostilities

      • Product offerings designed to meet specific needs of Armed Forces personnel

      • Range of products from guaranteed investment, retirement solutions, and child protection

      • Special medical & financial guidelines aimed to meet the needs of the Armed Forces

      • Excellent online self-service system to manage your policy anytime anywhere

      • Ease in renewal payment through Electronic Clearance Service (ECS) / National Automated Clearing House (NACH), Direct Debit, Branch Network, and Net Banking

      • Facility to service policy through our branches in India

      • Personalized after sales service by dedicated and trained sales team comprising of Ex- Servicemen and/or their family members

      • Simplified Claim Process

      • Minimum Documentation

      • Waiver of Death Certificate in case of untimely demise in field location. Claims are processed based on the DO letter from Commanding Officer

      • Prompt claim settlement within 4 working days of receiving required documents

  2. DHFL Pramerica Prahri: This is another life insurance cover available for military personnel who dedicate their lives for the welfare of the country. This policy is designed exclusively for the welfare of members of the Armed Forces in India. The products available under this policy provide coverage for war and warlike situations. The protection offered by this cover helps military personnel and their family members plan their finances effectively.

Top Insurance Mistakes to be Avoided by Armed Forces Personnel

  1. Combining Insurance with Investment – Armed forces personnel could get tempted to buy products which combine insurance with investment. The problem is that such products often do a poor job on both fronts. The better approach is to separate your insurance and investment products.

  2. Dependency on Insurance Agents - While buying insurance, you should always remember that the incentives and aims of insurance agents might not coincide with your own.

  3. Confusing Insurance with Tax Planning - The amount of insurance you buy should be determined by the risks you face, and not the limits prescribed in the tax code.

  4. Forgetting to Revisit Insurance Needs - As you grow financially in life, so will your insurance needs. For instance, for every child you have, you need to increase your life cover. Conversely, as you grow older and your retirement fund accumulates, your need for insurance decreases.

  5. Ignoring Disability Insurance - Don’t forget disability insurance Life insurance provides your family with funds in case you pass away but doesn’t apply if you are disabled and unable to work. So, make sure you buy adequate disability cover.

  6. Don’t Over-Insure Small Risks - The question you should be asking is: is this a risk that will change my life fundamentally if the worse happens or will it just cause a temporary financial loss?

  7. Buy life insurance for a spouse or children only if needed - In a dual-income household, it is important to protect the earning capacity of both spouses. But your small, non-earning children will not pass the criteria for being insured.

Additional Reading: What Are the Different Types of Life Insurance Policies?


  1. Why should a person from the armed forces buy a life insurance plan?

There is a higher risk to life for people in the armed forces. This creates a need to safeguard the family’s financial future even in case of the person’s death. Life insurance plans can help protect the life insured as well as the family in unforeseen circumstances.

  1. Which is the best life insurance for armed forces?

The personnel from the armed forces have limited options when it comes to life insurance. They must evaluate all the available options and assess their requirements against the options in the market.

  1. Does life insurance cover the war situations for armed forces?

Yes. Some of the life insurance covers offer benefits even in case of war like situations or emergencies. This way, the armed forces personnel can get appropriate benefits in case such a situation arises.

End Note

Members of the Armed Forces play a major role in protecting the welfare of the country. When it comes to life insurance for armed forces, members who are not part of the active service will not have any issues in getting regular life insurance covers available in the market. These plans provide adequate coverage to meet their financial requirements.