Know thetypes of social security schemes launched by the Indian Goverment

Posted by sushant mishra on February 21st, 2021

Several insurance schemes and pension policies are underrated in India. A tiny part of the Indian population opts for the security schemes. For encouraging more and more people to join the scheme, Indian Prime Minister Narendra Modi launched three types of social security schemes – Pradhan Mantri Jeevan Jyoti Bima Yojana, Atal Pension Yojana, and Pradhan Mantri Jan Dhan Yojana. The primary objective of these schemes to better the lives of the economically backward section of the society.

Let us decode these themes –

Pradhan Mantri Jan Dhan Yojana: The Indian Government announced the scheme on August 15, 2014. The scheme offers a comprehensive financial solution to all households in the country. The motive of PMJDY is to provide universal access to financial services for all families. The scheme wishes to grant at least one account to every household apart from promoting banking literacy, pension services, insurance, and access to loans.

PMJDY also makes sure that the bank representatives give those unaware of the banking transactions proper training. The additional facilities that the bank carries out are providing RuPay debit card, accident cover of INR 1 lakh, and overdraft facility to those who show successfully manage the account for six months.

Pradhan Mantri Jeevan Jyoti Bima Yojana: The banks offer PMJJBY for people between the age group 18 years to 50 years. Aadhaar is the primary document for opening such an account. Those who wish to opt for this plan must enable auto-debit from the account. It offers risk coverage up to INR 2 lakh in the event of the death of the policyholder.

Also, the annual premium of the policy is affordable. It gets auto-debited from your savings account every year on May 31 during the coverage term. For enjoying all these benefits, you must hold a savings account with the participating bank.

Atal Pension Yojana: There are people in India who do not opt for pension schemes often, especially the weaker section of the society. For encouraging the weaker section to go for pension schemes, Prime Minister Modi launched the Atal Pension Yojana. It focuses on the workers coming from unorganised sectors.
It is open to all the bank holders, and individuals will receive a fixed pension of INR 1,000 to INR 5,000 if you join the scheme between 18 years to 40 years. The Central Government contributes up to 50 per cent of the contribution or INR 1,000, whichever is low, for a term of five years. The exit age and start of the pension are 60 years.

Which scheme would you go for? PMJJBY policy, APY, PMJDY?