My Thoughts on About Affordable Insurance and Social Security in India

Have You Planned Your Future? My Thoughts on About Affordable Insurance and Social Security

It is considered general knowledge that one needs to be smart and plan for a safe future and our social security. Our parents have done and we will – or should I say that we must – do it too. In the Indian scenario, making sure that your future is safe and secure comes on top of almost everyone’s life goals.

Affordable insurance helps our families in times of need, in situations that can be unfortunate and tough. It helps our closed ones at times of needs, and ensures that they lead a comfortable life even when we are not around to take care of them.

How Life Insurance works is that the Insurer will pay the Beneficiary of our Policy, a prearranged amount of money, after you are gone. Some policies also cater in situations of a critical illness. Clearly, Life insurance is a crucial insurance policy that we must plan among our other savings and investment portfolios.

Social security schemes might seem daunting at first, but no one can deny that they are extremely important – whether it’s Life Insurance, Travel Insurance or something similar.

There are a lot of insurance policies by various companies and banks that are available to us right now. Each has their positive points. But in this post, let me talk about two policies provided by the Government of India.

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Affordable Insurance & Social Security
Affordable Insurance & Social Security

Two Life Insurance Policies Provided By Govt of India:

1. Pradhan Mantri Jeevan Jyoti Bima Yojana

Pradhan Mantri Jeevan Jyoti Bima Yojana, or PMJJBY in short, is a one year life insurance scheme starting June 1 to May 31 every year. This policy can be renewed every year. It offers coverage in case of death. PMJJBY covers only mortality, so the benefit of this insurance policy will accrue to the nominee.

This policy by the government is what we call a pure term insurance policy, and it covers only mortality with no investment component.

Available to the age group of 18 to 50 years ( life cover up to age 55), the Pradhan Mantri Jeevan Jyoti Bima Yojana requires you to have a Savings Bank Account. You also have to give their auto-debit consent by 31st May of that year.

Under the Pradhan Mantri Jeevan Jyoti Bima Yojana scheme, life cover of Rs. 2 Lakhs is available at a premium of Rs.330 per annum per member. Like I mentioned above, this is renewable. If you have a joint account, all holders of that particular account can join the scheme, if they are eligible and pay the premium at the rate of Rs.330 per person per annum.

[ You might like to read about The Ultimate Guide To Book A Cruise That’s Best For You ]

2. Pradhan Mantri Suraksha Bima Yojana

This is an accident insurance scheme, and has gained a lot of popularity ever since it was announced. This scheme offers a one year accidental death and disability cover, and like the previous policy, this too can be renewed annually.

The Pradhan Mantri Suraksha Bima Yojana, or PMSBY in short, has risk coverage for Rs 2 lakh for accidental death and permanent total disability, and Rs 1 lakh for permanent partial disability.

PMSBY covers accidents, death and disability resulting from natural calamities.

The eligibility criteria for Pradhan Mantri Suraksha Bima Yojana is as follows:  All individual (single or joint) bank account holders of 18 to 70 year of age. If you have multiple bank accounts in one or different banks, then you will be eligible to join the scheme through one bank account only. Also, all holders of a joint account can join the scheme as well, so it’s pretty easy and uncomplicated.

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Affordable Insurance & Social Security
Affordable Insurance & Social Security

Apart from these two policies by the government, I’d also like to mention the Travel Insurance provided by IRCTC – mainly because I am all about Travel and Travel Blogging in India. Travel insurance can be tricky at times, and I have learned that IRCTC is a great bet if you want an easy Travel Insurance policy in India.

The Indian Railway Catering and Tourism Corporation (IRCTC) has recently introduced a new scheme called – Book Now, Pay Later. This scheme will ensure that while you book ticket from the IRCTC website, the option to select “Book Now, Pay Later” will be given to you as well. So, you can now pay the ticket amount within 14 days from the date of ticket booking. Simple, right?

All three of these policies can be subscribed easily by simply contacting your bank, sending an sms to your bank or going online to register by downloading the online form.

So go ahead, read more about these great policies and get yourself insured.

This blog has been written in collaboration with Sahil Kapoor, Chief Market Strategist, Edelweiss Broking Limited. To read more of his blogs, please click here.


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Post Author: Aditi Mathur Kumar

Author of 2 books. TEDx Speaker. Travel Writer. Blogger. Addicted to Travel & Books. Digital Media Strategist. Social Media Girl. Army Wife. Mom. Curious. Crazy.

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