PMJJBY or PMSBY: Which cover works for you?
These two policies have been launched by the government for the poorer sections of the society to help them tide over difficult times
The recent rail accident in Balasore, Odisha, claimed over 250 lives. As per reports, most of the dead were travelling in the unreserved general compartments and were from the poorer strata of the scociety. But the families of those who had bought two affordable insurance plans would get up to Rs four lakh as compenstion. The two insurance schemes are the Prime Minister’s Jeevan Jyoti Bima Yojana (PMJJBY) and the Prime Minister’s Suraksha Bima Yojana (PMSBY). But how does one buy these policies, how good are they and what are the benefits? We will discuss all of here.
What are PMJJBY and PMSBY?
The Prime Minister’s Jeevan Jyoti Bima Yojana is a term insurance plan. This means that in the event of the policyholder’s death, the insurance company pays the claim amount to the nominee. If the policyholder survives the specified term, they do not receive any benefits. The Prime Minister’s Suraksha Bima Yojana on the other hand provides the policyholder with a payout in the event of an accident.
Who can enroll?
For PMJJBY, the minimum age to enroll in the term plan is 18 years, and the maximum age is 50 years. Under this scheme, coverage can be obtained until the age of 55. PMSBY can be purchased by individuals aged 18 to 70 years. Individuals up to the age of 70 can buy it, but if the beneficiary’s age exceeds 70, they won’t be eligible for coverage.
What coverage do they provide?
Under the Prime Minister’s Jeevan Jyoti Bima Yojana, a life insurance cover of two lakh rupees is provided. A full claim can be made in the event of the policyholder’s death or total permanent disability. The Prime Minister’s Suraksha Bima Yojana also offers a cover of Rs two lakh. The insurance amount is paid out in the event of death or total disability, while partial disability entitles the beneficiary to a benefit of up to Rs one lakh. The Suraksha Bima Yojana provides coverage at three levels: death, total permanent disability, and partial permanent disability, while PMJJBY does not cover partial permanent disability.
How much is the premium?
The annual premium for the Prime Minister’s Jeevan Jyoti Bima Yojana is Rs 436, while for the Prime Minister’s Suraksha Bima Yojana, it is Rs 20. The premium for both insurances is valid from June 1 to May 31. The insurance amount is deducted from the policyholder’s bank account before June 1 each year. When you agree to take the insurance for the first time, you are also giving consent for an auto-debit request, which means the premium will be automatically deducted each year.
Requirements for PMJJBY and PMSBY
The candidate must have an active savings account. You can visit any bank branch or apply for the policy through internet banking.
An Aadhaar card or government identification is required.
Ensure that your bank account is linked with Aadhaar.
If you want to make an insurance claim, you must do so within 45 days.
Note that when it’s time to renew the insurance, you must have sufficient funds in your bank account because if the premium is not paid in any given year, you won’t be eligible for the insurance benefits, and your scheme will be considered void.