New Social Security Schemes - By PM Modi

Prime Minister Narendra Modi led government has launched three major social security schemes in India. The main objective of these schemes is offering social security and affordable insurance to the citizens of India. The schemes can be availed conveniently at banks and enjoy the auto-debit facility to enable direct payments from your bank account. The three insurance and pension schemes launched by PM Modi are:

• Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
• Pradhan Mantri Suraksha Bima Yojana (PMSBY)
• Atal Pension Yojana (APY)

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New Social Security Schemes - By PM Modi

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY):

PMJJY is one of the several ambitious social security schemes launched by Prime Minister Narendra Modi. The scheme was launched to provide insurance cover to the citizens living below the poverty line and the lower income groups in India.

This is a term insurance plan which offers yearly insurance cover of Rs 2 Lakh in case of the demise of the policyholder, within the policy tenure. The scheme is very affordable with an annual premium of just Rs 330. The amount is directly debited from your bank account.

See Also: Best Term Insurance Plans In India

Eligibility:

PMJJY can be availed by anyone between the age of 18 to 50 years. People availing the policy before 50 years enjoy insurance coverage up to 55 years of age. However, the beneficiary must pay the premium amounts on a regular basis to enjoy the benefits of the scheme.

Salient features of the PMJJBY scheme:

• The policy offers life coverage for a year, post-which the policy can be renewed for further coverage.
• The policyholder can discontinue the scheme and re-join at a later time as per convenience.
• The maximum sum assured is Rs 2 Lakh.
• This term insurance policy comes with an affordable premium and is the same across age groups.

See Also: Term Life Insurance - A Necessity Or A Fad?

Pradhan Mantri Suraksha Bima Yojana (PMSBY)

PMSBY is a new social security scheme that offers coverage for accidental death or disability for a year, and can be renewed annually. The scheme comes with an affordable annual premium of just Rs 12 and is very helpful for the BPL (Below Poverty Line) and the low-income segment where people are mostly engaged in construction jobs, agriculture and manual labour.

The scheme offers an insurance cover of Rs 2 Lakh in case of accidental death and Rs 1 Lakh in case of permanent disability of the insured.

Eligibility:

People belonging to the age group of 18 to 70 can join the scheme. In case the beneficiary has more than one bank account, he can join the scheme through a single bank account only. NRIs can also join the PMSBY scheme. However, in case of a claim, the nominee will be paid in Indian currency only.

Salient features of the PMSBY scheme:

• The scheme comes at very low premium of just Rs 12.
• You must be between 18-70 years to enjoy the benefits of the scheme.
• The scheme aims to provide social security to the poor and the low income groups in India.
• The scheme also provides insurance cover for partial disability at Rs 1 Lakh.

See Also: Life Insurance Policies

Atal Pension Yojana (APY)

The main objective of the Atal Pension Yojana or APY is to offer social security to the people working in the unorganized sector like maids, cooks, gardeners, carpenters and so on. The subscriber is eligible for a minimum pension of Rs 1,000 to Rs 5,000 depending on the age at the inception of the policy and the monthly contributions made towards the scheme. The minimum period of contribution to the scheme is 20 years or more. On the death of the beneficiary, the pension amount can be claimed by the nominee/spouse.

Eligibility:

Any Indian citizen belonging to the age group of 18 to 40 years is eligible to join this scheme. The subscriber must make regular payments for a minimum of 20 years and must have an Aadhaar-linked bank account and a valid mobile number. 

Salient features of the APY scheme:

• The scheme covers all workers of the unorganized sector and provides them a monthly pension in old age.
• The government makes a contribution of 50% of your total contribution or Rs 1000 a year (whichever is lower).
• The subscriber must not be a part of EPF and must not pay income tax.
• The pension payment under the scheme commences at the age of 60 years.
• In case of death of the policyholder before 60 years, the accumulated amount can be claimed by the spouse/nominee of the subscriber. 

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