Imagine a world where every Indian, regardless of income, has a safety net for life’s uncertainties—whether it’s an accident or an unexpected loss. That’s the vision behind Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY).

These schemes have significantly contributed to the broader goal of financial inclusion by offering affordable insurance options. Here's how they impact insurance penetration.

In this blog, we will explain the features of both schemes and compare PMSBY vs. PMJJBY so that you can decide which scheme is right for your needs.

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

The Pradhan Mantri Suraksha Bima Yojana (PMSBY) is an accident insurance scheme backed by the Indian government. It provides financial compensation to the insured in the event of their accidental death or total or partial disability.

The PMSBY aims to provide financial security to those from lower-income sectors. Considering this, the policy is available at affordable premiums starting at just Rs.20 per person per year. The sum assured ranges between ₹1 and 2 lakh, depending on the extent of disability. In case of death, a compensation of ₹2 lakh is provided.

Also Read: How to claim PMJJBY and PMSBY?

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

The Pradhan Mantri Jeevan Jyoti Bima Yojana is a government-backed life insurance policy. This term insurance policy is offered by the LIC and other life insurance companies in collaboration with various banks and post offices. Their Aadhaar card would be used as a Know Your Customer (KYC) document. The premium is only ₹330 per year per person. In the event of death, the nominees can get a financial compensation of ₹2 lakh. Indian citizens who are 18 to 50 years old can enroll in this scheme. 

What are the Differences between PMJJBY and PMSBY Schemes?

PMJJBY and PMSBY are different types of insurance schemes. let us know pmjjby and pmsby scheme details. While PMSBY provides coverage against accidental death and disability, PMJJBY provides financial support after the death of the insured. The sum assured, age criteria, and the premium amount are also different for both these policies.

This table briefly summarizes the key differences between PMJJBY and PMSBY.

Feature

PMSBY (Pradhan Mantri Suraksha Bima Yojana)

PMJJBY (Pradhan Mantri Jeevan Jyoti Bima Yojana)

Type

Accidental death and disability insurance

Life Insurance

Coverage Amount

For accidental death: ₹2 lakh

For partial disability (Loss of sight of one eye or loss of use of one hand or foot): ₹1 lakh

For severe disability (Loss of sight in both eyes or loss of use of both hands or feet.

₹2 lakh for death due to any reason.

Eligibility

18 to 70-year-old citizens with accounts in participating banks or post offices.

18 to 50-year-old citizens with an account in the participating banks or post offices.

Premium

₹ 20/Year

₹ 330/Year

What are the Similarities between PMJJBY and PMSBY?

If you compare the features of PMJJBY and PMSBY, you will realize that the policies share many similarities.

Government Support

The Government of India initiates both schemes to provide affordable insurance coverage to citizens, especially those from economically weaker sections.

Affordable Premium

Both PMJJBY and PMSBY have low annual premiums because they are designed to benefit lower-income groups in the country. PMJJBY has a premium of ₹330 per year, while PMSBY costs ₹20 per year.

Easy Access

It is easy to enroll in this scheme through participating banks and post offices. The Aadhaar card is used as the primary KYC document. Apart from that, applicants only need to provide basic personal information and bank account details.

Lenient Eligibility Criteria

These insurance policies are available to everyone belonging to the specified age group. PMJJBY requires participants to be between 18 and 50 years old, while PMSBY is available for those aged 18 to 70.

Yearly Renewal

Both policies require a yearly renewal to continue coverage. Participants can renew their policies as long as they meet the eligibility criteria.

Conclusion

Government insurance schemes like PMJJBY and PMSBY aim to provide affordable insurance coverage to Indians who belong to lower-income groups. The premiums are quite affordable and the sum assured is sufficient enough to provide support during a financial crisis. If you compare PMJJBY and PMSBY, both schemes serve different insurance purposes. To get the maximum protection, you can consider enrolling in both schemes.

FAQs on PMSBY and PMJJBY

Can I take both PMSBY and PMJJBY?

Yes, you can have both PMSBY and PMJJBY. However, you must satisfy the eligibility criteria of both schemes.

Is PMSBY worth it?

PMSBY is worth it for most because it provides significant financial help during events like accidental death and disability. It is especially beneficial to lower-income groups who cannot afford or are not eligible for private insurance policies.

What is the benefit of PMJJBY?

PMJJBY is a life insurance policy that provides financial help of up to ₹2 lakh after the insured's death due to any reason. Affordability is a key benefit of this policy.

Is natural death covered by PMSBY?

No, natural death is not covered by the PMSBY. It only covers accidental death and disability.

What is the difference between PMSBY and PMJJBY premium?

The premium of PMSBY is ₹20 per year while the premium of the PMJJBY is ₹330 per year.