Prime Minister’s Social Security Schemes

By BankBazaar | March 6, 2020

Only a small percentage of the Indian population opt for security schemes. In order to encourage more people to invest in such schemes, Prime Minister Modi launched these Social Security Schemes.

Prime Minister’s Social Security Schemes

Insurance policies and pension schemes are highly underrated in India. A very small percentage of the Indian population opts for security schemes. In order to encourage more people to invest in such schemes, Prime Minister Modi launched three Social Security Schemes: Pradhan Mantri Suraksha Bima Yojana, Pradhan Mantri Jeevan Jyoti Bima Yojana and Atal Pension Yojana.

Here’s a brief about the three Social Security Schemes:

Pradhan Mantri Suraksha Bima Yojana (PMSBY)

Taking into consideration the importance of Life Insurance, the Prime Minister launched the Pradhan Mantri Suraksha Bima Yojana, which provides life cover for individuals from the age of 18 to 70 years. With a nominal premium amount of only Rs. 12 annually, this scheme ensures that life cover becomes affordable to even those who live below the poverty line.
An amount of Rs. 2 lakhs will be provided to the family in case of accidental death or full disability of the insurance holder. And a sum of Rs. 1 lakh will be given in case of partial disability. Pradhan Mantri Suraksha Bima Yojana is actually interlinked with the Jan Dhan Yojna. Those who have their accounts under the Jan Dhan Yojana scheme are eligible for life cover under this scheme. The premium amount will be deducted directly from the account annually. The life cover will be terminated once the individual is 70 years old or if the balance in the account isn’t sufficient to deduct the annual premium.

Additional Reading: How To Automate Savings And Investments

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)

The Pradhan Mantri Jeevan Jyoti Bima Yojana is a Life Insurance scheme backed by the government. Figures indicate that only 20% of the Indian population opts for any kind of insurance. This scheme aims to promote insurance schemes and increase the number of subscribers.
The Pradhan Mantri Jeevan Jyoti Bima Yojana can be availed by anyone between the ages of 18 and 50 years. To avail this scheme, you have to pay a premium of Rs. 330 per annum (and taxes). It offers a renewable Life Insurance cover of Rs. 2 lakh for death due to any reason. One needs to hold a savings bank account with the participating bank.

The Atal Pension Yojana  (APY)

In India, the number of people opting for pension schemes is very low, especially among the poorer masses. In order to encourage the working poor to opt for pension schemes, Prime Minister Modi launched the Atal Pension Yojana.This scheme focuses on the workers from the unorganised sector of India. This scheme is open to all bank account holders. A fixed pension of between Rs. 1,000 and Rs. 5,000 will be available for subscribers if they join the scheme between 18 years to 40 years of age. The Central Government will contribute 50% of the total contribution or Rs. 1,000 per annum (whichever is lower), for five years, if you subscribe before December 31st. The exit age for contribution and the start of pension stands at 60 years.

Additional Reading: Advantages Of Life Insurance

Also, check out these two other important schemes that is especially aimed at the economically weaker classes:

Pradhan Mantri Jan Dhan Yojana

The scheme aims at providing basic bank accounts and Debit Cards to all. An individual can open an account with any bank branch at zero balance. Some key highlights include – Rs. 5,000 overdraft facility for all Aadhaar-linked accounts, A Rupay Debit Card which is pre-loaded with Rs. 1 lakh accidental insurance cover,

Mudra Loan

Under the Pradhan Mantri Mudra Yojana (PMMY), the Mudra Loan is given out to non-farming & non-corporate micro and small enterprise. Below are the details of the loan:
Amount Upper limit of Rs. 10 lakhs

·         Shish – Loans up to Rs. 50,000

·         Kishore – from Rs. 50,001 – Rs. 5 lakhs

·         Tarun – from Rs. 5,00,001 – Rs. 10 lakhs

 

Processing fees ·         Shishu and Kishore – no fee

·         Tarun – 0.5% of loan amount

Eligibility New & existing enterprises
Tenure 3-5 years

Now that you’re all caught up with these Government schemes, care to check out some Credit Cards. Personal Loans and Home Loans?

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