• Similarities and Differences between Pradhan Mantri Suraksha Bima Yojana & Jeevan Jyoti Bima Yojana

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    Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) are two different insurance policies launched by the government of India. These policies are intended to provide relief for a family following the death of the primary insured. Being government-backed policies, these covers come with affordable price tags and they provide the basic protection required for a low-income household. 

    Similarities Between PMSBY & PMJJBY 

    Some of the similarities between PMSBY and PMJJBY are as follows: 

    • Both are insurance schemes backed by the government. 
    • All Indian residents are eligible for both schemes irrespective of their income. 
    • The schemes are available from both private and public sector banks. 
    • The maximum sum insured amount available under both policies is Rs.2 lakh. 
    • Having a savings bank account is mandatory for both these schemes. 
    • The scheme can be bought from the bank in which there is a savings account. 
    • The premium amount charged for these policies will be deducted every year from the bank account through the ‘auto debit’ facility. 
    • The insurance period for both these policies starts from 1st of June and ends on 31st of May every year. 
    • Minimum age at the time of entry is 18 years. 
    • These two policies will terminate automatically once the insured person attains the maximum age as per the policy. 
    • Individuals can hold only one policy at a time irrespective of the number of accounts they have with other banks. 
    • The premium amount paid for these policies is eligible for income tax relief. 
    • These policies will not lapse in case the annual premium amount is not paid. 
    • If the policies are terminated due to insufficient balance in the bank account, the insured can be reinstated upon payment of the outstanding premium amount. 
    • The document is very minimal for both these policies. An application form has to be filled while enrolling. The Aadhar number of the insured must be included in it. 
    • In case of the death of the insured person, the legal heir or nominee will receive the benefit amount. 
    • Refund will not be issued in case there is no claim raised. 

    Differences Between PMSBY and PMJJBY 

    Some of the notable differences between these two schemes are given in the following table: 

     
    Criteria  PMSBY  PMJJBY 
    Annual premium amount  Rs.12 per person  Rs.330 per person 
    Type of scheme  Accident insurance scheme  Life insurance scheme 
    Type of coverage  Personal accident coverage  Life insurance cover 
    Benefits available 
    • Rs.2 lakh for the death of the insured person 
    • Rs.2 lakh for the permanent total disablement of the insured person 
    • Rs.1 lakh for the permanent partial disablement of the insured person 
    Rs.2 lakh against the death of the insured person (any reason) 
    Age limit  18 to 70 years  18 to 50 years 
    Maximum age of premium payment  70 years  50 years; if premium is paid every year, it can be extended to 55 years 

    Conclusion 

    Government-backed policies provide relief for low-income households during the times of financial turmoil caused by the death or disability of a family member. The documentation process is extremely minimal for both these policies, and all it takes is a savings bank account to get access to these policies. One of the notable distinctions in these policies is the extremely low premium amount. These policies are available for all sections of the society irrespective of what they earn. Most importantly, these policies come with flexible terms and conditions to ensure that economically backward sections of society are adequately covered against death and disability. 

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