PMJJBY vs PMSBY - Differences and Similarities

What is the Pradhan Mantri Suraksha Bima Yojana (PMSBY)?

PMSBY full form is Pradhan Mantri Suraksha Bima Yojana. The scheme is offered by Public Sector General Insurance Companies (PSGICs) and other general insurance companies. It is an Accident Insurance Scheme that provides one-year cover and is renewable from year to year.

The Pradhan Mantri Suraksha Bima Yojana Scheme provides insurance for accidents, including death, disability, and permanent disability. Anyone who is aged 18 to 70 and has a bank account can join this scheme. The yearly premium for Pradhan Mantri Suraksha Bima Yojana stands at Rs 12, and it will be automatically deducted from the linked bank account. If you are completely disabled or die in an accident, your nominee gets Rs. 2 Lakhs. If you have a partial permanent disability from an accident, you receive Rs. 1 Lakh.

What is the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)?

Pradhan Mantri Jeevan Jyoti Bima Yojana is a government scheme that was launched in 2015. This life insurance scheme offers financial help to the policyholder’s family members in case of his/her unfortunate death. This scheme is offered by LIC, other life insurers, and Indian banking institutes. It is available for individuals from 18 years to 50 years with savings bank accounts at official banks. The annual premium for the Pradhan Mantri Jeevan Jyoti Bima Yojana amounts to Rs 330, and it will automatically be deducted from your linked bank account. If the claimant has several savings accounts in different banks, then he/she can enroll under the PMJJBY Scheme through one savings account only. It is much like a term insurance plan that provides protection during unforeseen events.

*Note: The annual premiums of PMJJBY and PMSBY may fluctuate based on your location, the prevailing GST rates, and your age.

What are the Differences between PMJJBY and PMSBY Schemes?

The following table elaborates the key differences between PMJJBY and PMSBY:

What are the Similarities between PMJJBY and PMSBY ?

Listed below are the similarities between PMJJBY and PMSBY:

• Both these schemes are government backed insurance schemes and can be purchased by all Indian residents, regardless of their income. PMJJBY and PMSBY schemes were launched by the Indian Government. 

• These schemes are available in public and private sector banks. You are required to have a savings account to opt for these schemes. 

• Both the above schemes, PMJJBY and PMSBY will not lapse if the premium amount is not paid. 

• PMJJBY and PMSBY schemes have tax saving benefits. This means the premium amount paid is free of taxes. 

• The premium sum charged towards the plan is deducted from the savings account associated each year on the auto-debit facility. 

• In case the balance in the bank associated is insufficient, then the policy will terminate. The insurer can reinstate the scheme once the payment of the outstanding premium sum is made.

*Note: It is suggested for all NRIs living in Canada that they know what is term insurance first and what its features are before they buy their ideal plan.

Wrapping it Up

Even though both these schemes do not replace the need for a term insurance policy in our life, both these government-backed schemes help provide financial protection to the family in case of any eventuality. Moreover, the low-income group of individuals should consider investing in these schemes as it comes with a lower premium rate and ensure the right financial security for the family. One can apply for the schemes very easily by just filling the form.

Note: Check all the best term insurance plan in India.

Note: You should also check the benefits of term life insurance if you are planning to purchase the term insurance plan.

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