Besides these 2 schemes, several other Yojana were also introduced by PM Modi. However, these 2 are one of the most popular insurance schemes. The primary reason behind launching these schemes is to maximize the protection of every Indian against death or disability due to accidents or major physical injury. More than 70% of Indians do not have any insurance policy in India. That’s one of the primary reasons behind the launch of both these schemes. Before knowing the difference between both the Yojanas, let’s get to know what exactly they are?
Difference Between PMSBY and PMJJBY
What is Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)?
PMJJBY is a pure term insurance term plan that offers life insurance coverage for 1 year. If the insured died due to an accident or naturally, the person is paid the sum assured of Rs. 2 lakh. The yearly premium paid under this scheme is Rs. 330.
What is Pradhan Mantri Suraksha Bima Yojana (PMSBY)?
PMSBY is a personal accident insurance plan that covers accidental death permanent partial/total disablement. The policy runs for 1 year, and the premium under this scheme is Rs. 12 annually. If the insured dies from an accident, the sum assured is paid, which is Rs. 2 lakhs. However, 1 lakh is paid to the insured if they suffer a partial disablement.
Similarities Between PMJJBY and PMSBY
Both insurance plans were launched to support the weaker section of the society who never opt for any insurance plan. These schemes aimed to provide low-cost coverage to the entire Indian population. Since the launch of both insurances, they became widely popular, and the majority of the Indian population opted for these affordable premium rates policies. Let’s quickly check out all the similarities between both the schemes:
Both the schemes are voluntary insurance schemes, which can be opted as per the individual’s preference. PMSBY and PMJJBY run for 1 year, after which they are renewed by paying the premium against them. The death coverage under both of them is 2 lakhs. The insurance duration is from 1st July to 31st May under both schemes. Payment under both the Yojanas is auto-debited from your savings bank account, implying the insured must have a savings account under his name. If you have multiple bank accounts and want to opt for PMSBY or PMJJBY, you can link any of your accounts to avail yourself of coverage. You can buy both schemes either through insurance companies or participating banks. You can buy both schemes even when other insurance policies run under your name.
Also Read: Pradhan Mantri Jan Arogya Yojana
Differences Between PMJJBY and PMSBY
Both the insurance schemes share some similarities. However, there are many differences between PMJJBY and PMSBY. To know these differences, let’s dive in:
- Eligibility The individuals must be between 18 to 50 years of age to enroll in the PMJJBY scheme. Life insurance coverage is available only up to 55 years of age. Whereas individuals aged between 18 to 70 years are eligible to enroll in the PMSBY scheme. Plus, the coverage is available until 70 years of age. 2. Premium The annual premium of the PMJJBY insurance plan is Rs. 330. Whereas, under the PMSBY scheme, the premium payable for the coverage is just Rs. 12 per year. 3. Type of Scheme PMJJBY is a life insurance term plan, while PMSBY is a personal accident insurance plan. 4. Nature of Insurance PMJJBY is a life insurance policy, whereas PMSBY is a general insurance policy. 5. Coverage Offered Under the PMJJBY insurance plan, all types of death are covered, be it accidental or natural, to receive the sum insured. However, any other type of disability is not covered under this Yojana. While under the PMSBY scheme, only accidental death is covered. That means, if the insured naturally, they will not be entitled to get the sum insured. However, the partial disability during the coverage duration is covered under this insurance plan.
- Benefits Payable Under the PMJJBY scheme, if the insured dies during this policy’s term, the person is entitled to receive a sum insured of Rs. 2 lakh. On the other hand, if the insured suffered permanent total disablement or died due to an accident, the sum insured is paid, which is Rs. 2 lakhs. However, the insured is paid Rs. 1 lakh if they suffer permanent partial disablement. 7. Waiting Period for Claims There is a waiting period of 45 days in case of the natural death of the insured. However, there is no waiting period if the insured died accidentally under the PMJJBY scheme. Under the PMSBY scheme, there is no waiting period, and the good part is that coverage is available from Day 1. Also Read: Loan under Pradhan Mantri Jan Dhan Yojana (PMJDY) Q1. Are there any Documents Required to Opt for PMJJBY or PMSBY? No, there are no documents required. You just need to fill out the application form once to buy any of the policies. Q2. Can I Buy PMJJBY and PMSBY Policies under one individual’s name? Yes, you can buy both policies under the same individual’s name. Q3. Can anyone buy this policy? Yes, anyone can buy this policy irrespective of the income earned yearly. Q4. Will I get my money back if the claim is not made? No, even if you do not claim the insurance money, you won’t get the money you paid as a premium every year. Q5. Who will receive money in case of the policy holder’s death? The nominee will receive the sum insured when the insured dies. Q6. Is the premium paid tax-free? Yes, the premium you pay is entirely tax-free. Q7. Can you rejoin the policy if you leave it due to any reason? Yes, the policyholder is allowed to rejoin if they leave the scheme. Now, as you have gone through the similarities and differences between both the schemes launched by PM Modi, you can apply for the PMJJBY or PMSBY for your coverage needs. You can also check out other affordable insurance schemes introduced by our prime minister here.
