LIC Aam Aadmi Bima Yojana: Features And Benefits

Life Insurance Corporation (LIC) is one of the largest public sector undertaking companies in India. LIC offers a huge variety of insurance plans for Indian citizens at affordable costs. One of the most popular LIC policies that focus on the financially poor citizens is the Aam Aadmi Bima Yojana. It is a social security scheme launched by LIC on October 2, 2007, that aims to provide financial coverage to low-income families in India. Low-income families seldom have any savings as all of their income goes into their living expenses, so dealing with unfortunate circumstances such as the death or disability of an earning member of the family may be financially devastating. The Aam Aadmi Bima Yojana seeks to provide coverage to low-income families during times like these.

There are some specific eligibility criteria that a person must pass in order to be eligible for enrolment in the Aam Aadmi Bima Yojana scheme:

Age: In order to be eligible under this scheme, one must be between 18 and 59 years of age. 

Income: People who fall under the ‘Below Poverty Line (BPL)’, are eligible for this scheme. Moreover, rural people living in landless households are also eligible under this scheme. 

Members Covered: Only one member of the family, who is an earning member will be covered under this scheme. 

The following are the main features of the Aam Aadmi Bima Yojana:

Affordable Premiums: The premiums for the Aam Aadmi Bima Yojana are extremely affordable so that low-income families do not have to think twice about buying the policy. In some cases, the government also covers half the cost of premiums. 

Coverage Offered: The Aam Aadmi Bima Yojana provides the following coverage options for people enrolled under the policy: 

Natural Death: In case of the death of the policyholder due to natural causes, LIC will pay out ₹30,000 to the beneficiaries of the policy.

Disability: In case the policyholder is involved in an accident which causes them disability, their ability to provide for their family is disrupted. In case of partial disability, LIC pays out ₹37,500 to the beneficiaries. In the case of total permanent disability, a payout of ₹75,000 is given to the beneficiaries. 

Accidental Death: In the case of the accidental and unexpected death of the policyholder, a claim amount of ₹75,000 would be paid out to the beneficiaries. 

Scholarship Benefit: Under this policy, two eligible children studying in classes 9th to 12th can receive ₹100 as a scholarship every month.

Online Registration: LIC provides its users with the option to register and pay the premiums for the Aam Aadmi Bima Policy online through the official LIC website. Otherwise, you can visit the nodal agency at your designated location to enrol for this scheme offline. The documents required in order to register for this policy include an application form, identity proof, income certificate, address proof, nominee application form, etc.

While the Aam Aadmi Bima Policy provides coverage for natural/accidental death, as well as partial or total disability, there are also certain exclusions under this policy that are not covered:

• Self-inflicted injuries and attempted suicide

• Death/disability arising out of participating in dangerous sports

• Death/disabilty due to war-like situations 

• Death/disability due to substance abuse 

• Death/disability arising out of illegal activities

Disclaimer: All of the above information has been recorded at the time of writing and the policy details are subject to change in the future. Please visit the official LIC website to know more about the Aam Aadmi Bima Yojana.