The government of India has launched several schemes for the public of India. Among these schemes, two renowned insurance schemes offer insurance coverage at low premium rates- Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY).
Let’s look into these schemes in a detailed manner below:
Pradhan Mantri Suraksha Bima Yojana (PMSBY)?
Pradhan Mantri Suraksha Bima Yojana (PMSBY) is an accident insurance scheme that covers accidental death, permanent or partial disability. The scheme is offered by the public sector as well as general insurance companies.
The benefits of PMSBY can be availed by individuals between the age of 18 and 70 years. The applicants should have bank accounts since the premiums for this scheme will be deducted from their respective savings account.
The total amount of Rs 2 lakhs can be claimed from this policy. The premium rate of this policy is Rs 12 per annum.
Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)?
Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a term insurance plan that offers life insurance coverage in case of the insured’s death. The scheme is offered through life insurance companies and banks.
The benefits of PMJJBY can be availed by individuals between the age of 18 and 50 years. The applicants who have bank accounts are eligible for this scheme. A total amount of Rs 2 lakh is paid to the nominee of the policy after the death of the insured member.
Revised premium structure of PMJJBY is stated below:
- June, July, and August: Annual Premium of Rs 330 is to be paid
- September, October, and November: The premium amount of Rs 258 is to be paid
- December, January, and February: The premium amount of Rs 172 is to be paid
- March, April, and May: The premium amount of Rs 86 is to be paid.
Similarities between PMSBY and PMJJBY
| Aspects | Similarities |
| Eligibility Criteria | Must be an Indian resident and should have a savings bank account |
| Scheme type | Government-backed insurance schemes |
| Policy period | One year. Starting from 1st June to May 31st of next year |
| Sum assured amount | Rs 2 lakhs |
| Payment mode | The premium will be directly auto-debited from your savings bank account that is linked to the scheme |
| Entry age | 18 years |
| Tax benefits | The premium amount paid by the policyholder is tax-free |
| Buying the scheme | The schemes are sold via insurance companies as well as participating public and private sector banks. |
| Lapse of the policy | The policy will not lapse in case the premium amount is not paid |
| Re-joining | If the policy gets terminated due to inadequate bank account balance, it can be restored by paying the outstanding premium amount |
| Benefit | In case of the death of the insured, the nominee or legal heir will receive the benefit amount |
| Number of policies | An individual can hold only one policy. If you have multiple bank accounts, you can avail of the coverage from anyone account (savings account) only. |
| Refund | The money will not be refunded in case there is no claim raised. |
Differences between PMSBY and PMJJBY
| Aspects | Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) | Pradhan Mantri Suraksha Bima Yojana (PMSBY) |
| Type of scheme | Life insurance term plan | Personal accident insurance plan |
| Nature of Insurance | Life insurance policy | General insurance policy |
| Coverage offered | Death during the coverage period is covered. This can be death due to accident or owing to natural causes | Covers accidental death, permanent total disablement, or permanent partial disablement |
| Age limit | 18 to 50 years. | 18 to 70 years. |
| Maximum age of paying the premium | 50 years. However, it can be extended until they reach the age of 55 years provided that they pay the premium each year | 70 years |
| Benefits available | If the insured dies during the term of the policy, the sum assured amount of Rs 2 lakhs is paid to the nominee or legal heir of the policy | ● The sum insured of Rs 2 lakhs is paid in case of accidental death or permanent total disablement.
● Rs 1 lakh is paid for the permanent partial disablement of the insured person |
| Annual Premium Rate | Rs 330 per person | Rs 12 per person |
| Waiting period for claims | There is no waiting period for accidental deaths. However, the waiting period for natural deaths is 45 days | There is no waiting period. Coverage is available from the very first day |
Conclusion
Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Pradhan Mantri Jyoti Bima Yojana (PMJJBY) have been specifically designed by the government to provide relief to low-income households so that they can manage their financial crisis in case of the death or disability of a family member. The documentation process is very minimal for both the policies and one just needs to have a savings bank account to get access to these policies. Both the policies come with affordable premium rates and before purchasing any of these policies, do check out their similarities and differences and then only buy a scheme that is suitable for your coverage needs.
