Insurance for Disabled is Difficult in India?

Is getting insurance for disabled is difficult in India? Not anymore.

The plight of disability in India is not new. With a humongous population, unfortunately, our country has the largest number of disabled people in the world. Despite several initiatives taken by the government to improve the conditions of disabled people in the last few decades, sadly, they still have to fight a lot to mingle with mainstream of our country.

India still has a long way to go. However, it’s never too late to start. In recent time, worldwide insurance companies have come up and are working to improve the conditions of the handicapped people. Many initiatives have been taken to facilitate the physically disabled people with all the basic amenities of life to enrich them with a standard lifestyle.

Insurance Plans for the disabled introduced by the Life Insurance Corporation of India

LIC, one of the leading insurers in India has also extended its hand towards the interest of disabled people by launching Jeevan Adhar plan in 1996. Subsequently, LIC policy Jiwan Vishwas that give benefits to people who were unable to draw benefits from Jeevan Adhar.


These plans are tailor made for disabled dependents. They provide regular flow of income to the policy holder.

Till now, Jeevan Adhar and Jeevan Vishwas are the loan plans that are specially designed for the physically challenged people in our country.

Although both the plans have been introduced for the assistance of handicapped people, it has its own pros and cons. If we talk about Jeevan Adhar, it was launched by LIC initially, but the rules were very stringent. The disability norms were ruled under the section 11A of Income Tax Act, which eventually failed to cater to the needs of those who had a lower degree of disability. So, in order to bridge this gap, Jeevan Vishwas came into existence under which those handicapped dependents were benefited who was not able to meet the criteria of Jeevan Adhar.

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What Sets Them Apart

If we give some insight on the key features and benefits offered by the policies, then the eligibility conditions of the policies are more or less same, except some few major differences. LIC Jeevan Adhar is basically a whole life insurance plan while LIC Jeevan Vishwas is an endowment plan catering to the financial needs of the disabled dependents in India.

Condition of eligibility of LIC’s “Jeevan Adhar Plan”
Minimum Maximum
Sum Assured 50,000 No limit
Policy Term (years) 10 40
Term of Payment of Premium 1 Equal to Policy Term
Age of the Policyholder (entry) 22 65
Age of Maturity 75
Premium 800 No limits
Mode of premium payment Single, Yearly, Half-yearly, Quarterly, Monthly

.

Eligibility Condition in LIC Jeevan Vishwas
Minimum Maximum
Sum Assured 50,000 No limit
Policy Tenure(in years) 10 40
Premium Payment Term 1 Equal to Policy Term
Entry age of the Policyholder 22 65
Maturity Age 75
Premium 800 No limits
Payment Mode Single, Yearly, Half-yearly, Quarterly, Monthly

Insurance for Disabled

Benefits Offered by the Policies

If we discuss about the benefits offered by the two plans, then it includes death benefits, maturity benefits, and income-tax benefit.

LIC Jeevan Adhar does not offer any maturity benefit as it is whole life insurance plan. On the other hand, under LIC Jeevan Vishwas, maturity benefit is offered as 20% of the sum assured as lump sum and the remaining 80% of the sum assured with the guaranteed additional bonuses and terminal bonus is utilized to provide an annuity to the disabled dependent.

The death benefit offered under LIC Jeevan Adhar includes 20% of the sum assured + guaranteed bonus+ terminal bonus (if any) is paid to the nominee as the lump sum amount and the remaining 80% of the sum assured is utilized to pay the annuity for 15 years and above depending upon the age of the handicapped dependent.

As compared to this, the death benefit offered under LIC Jeevan Vishwas includes 20% of the sum assured is paid as a lump-sum amount and the rest 80% of the sum assured + Guaranteed addition+ terminal addition is utilized to pay the annuity for the physically challenged dependents.

Besides this, LIC Jeevan Adhar and LIC Jeevan Vishwas offer a tax benefit to the insured under section 80DD and under section 80C of Income Tax Act.

Which one is More Beneficial?

In comparison to Jeevan Adhar, there are numerous benefits in Jeevan Vishwas. Firstly, it offers maturity benefit, which assures the payment within a specific period and secondly, the annuity in Jeevan Vishwas offers many options now. In order to avail the maximum benefits, one can select the plans according to the requirements of his/her handicapped dependents.

The Final Verdict

The insurance sector in our country is evolving rapidly. As there are a lot of ways to bring changes to the lives of the disabled dependents and their families, Life Insurance Corporation of India has made a significant step to provide them with a life of financial independence in case of any unfortunate event in future.


Disclaimer: All blog posts of getmoneyrich.com are for information only. No blog posts should be considered as an investment advice or as a recommendation. The user must self-analyse all securities before investing in one.

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