For those who might already be contemplating term insurance plans, it is important to note that the Indian government already has certain setups and schemes in place, targeting the sudden demise of the insurer.
Better segregated as PMJJBY and PMSBY schemes these govt.-backed facilities allow you to insure your family against untoward mishaps and that too at highly affordable rates. In the subsequent sections, we shall talk about the best ways to approach and achieve insurance benefits, under the mentioned schemes.
More about the PMSBY Scheme
Here is a reliable government-backed insurance scheme that covers you for disability and even accidental death. Plus, any individual between 18-70 years can opt for this insurance scheme, which attracts a yearly premium of Rs. 12. When it comes to the insurance benefits, the family of the insured would get Rs. 2 Lakhs, as an immediate death or accidental-induced permanent disability benefit.
Also, in case of a partial disability, the insured gets Rs. 1 Lakhs as the PMSBY insurance benefit.
More about the PMJJBY Scheme
Getting the Pradhan Mantri Jeevan Jyoti Bima Yojana benefits is a bit more straightforward as compared to the PMSBY. While the yearly premium is still on the lower side at Rs. 300, it is more of a strict life insurance policy and not an accidental scheme, like the PMSBY. This means, even if the insured dies of a natural cause, the family will still get Rs. 2 Lakhs, as a benefit.
Also, the age limit for the same is slightly lower as compared to the PMSBY as the upper age limit is set at 50 years.
How to Enroll for the Schemes?
In case you want to reap the benefits of the mentioned term insurance schemes, offered and nurtured by the government, it is necessary to take note of certain factors.
Firstly, the premium will be directly debited from your savings account, provided your bank accommodates the same. Also, even if you have multiple savings accounts in place, these plans can only be linked with one. This means, one insurer can only procure this benefit one time.
Also, each plan automatically terminates once the maximum expiration age is attained. Not just that, the premiums you pay for the schemes are also eligible for tax benefits. Plus, the best thing about Pradhan Mantri Jeevan Jyoti Bima Yojana and even the PMSBY scheme is that neither of the policies lapses if the holder cannot pay certain premiums. The schemes can be reinstated instantly upon payment of the pending premium dues.
You can search for the PMJJBY and PMSBY schemes by heading over to the Finserv MARKETS. However, if you want a term plan that offers a bigger sum to the beneficiary, this platform also lets you compare and contrast the existing choices.