The Indian government offers affordable insurance schemes for low-income and unorganised sector families. Two of the most popular are the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and the Pradhan Mantri Suraksha Bima Yojana (PMSBY). While both aim to offer protection in an accessible manner, their purpose and benefits differ. Read on to know the difference between PMJJBY and PMSBY, their similarities, and how both can play a role in your overall life insurance plans.
What is PMJJBY?
The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a government-backed life insurance plan introduced in 2015. It provides a death benefit of ₹2 lakhs to the nominee in case the policyholder passes away due to any reason (whether natural or accidental). Once enrolled, one can download the PMJJBY certificate through net banking or directly from the insurance provider’s website (in order to have valid proof of the coverage).
If you have several savings accounts, make sure to enrol in the PMJJBY scheme through one account only. The premium will be debited from this linked account.
- Eligibility: Individuals aged 18 to 50 years, having a savings account at an official bank.
- Premium: ₹330 per annum currently.
- Renewal: Coverage is valid from June 1 to May 31, with an annual PMJJBY renewal required for continued protection.
This scheme is ideal for people seeking basic life insurance plans at a minimal cost.
Now, to better understand PMJJBY, PMSBY and their differences, here’s a look at the other scheme too.
What is PMSBY?
The Pradhan Mantri Suraksha Bima Yojana (PMSBY) is an accident insurance scheme. It is offered by the Public Sector General Insurance Companies and other general insurers. It provides financial compensation to the nominee in case of accidental death or disability incurred by the insured person.
- Eligibility: Individuals aged 18 to 70 years with a savings account.
- Premium: ₹12 per annum, auto-debited from the account annually.
- Coverage: 2 lakhs in case of accidental death or full permanent disability; ₹1 lakh in case of partial permanent disability.
- Renewal: Coverage runs from June 1 to May 31 and renews automatically if sufficient balance is available.
PMSBY offers a cost-effective safety net, especially for those in risky jobs or without the coverage of formal life insurance plans.
Differences between PMJJBY and PMSBY
Here’s a table to get a better understanding of the difference between PMSBY and PMJJBY:
Feature
| PMJJBY
| PMSBY
|
Scheme Type
| It is a life insurance plan.
| It is an accidental insurance plan.
|
Eligibility Age
| Individuals aged 18 to 50 years.
| Individuals in the age range of 18 to 70 years.
|
Premium
| ₹330 per year.
| ₹12 per year.
|
Coverage
| ₹2 lakhs (death from any cause).
| ₹2 lakhs in case of accidental death or full disability, and ₹1 lakh in case of a partial disability.
|
Who Can Provide It?
| LIC and life insurers
| Public/general insurance companies
|
Coverage Period
| Yearly Renewal
| Auto-renewed (in case of available balance)
|
Tax Benefits**
| Premiums qualify for deductions under Section 80C.
| Premiums may not be eligible for Section 80C deductions.
|
The main difference between PMJJBY and PMSBY lies in the nature of coverage:
- PMJJBY covers all types of death
- PMSBY is limited to accidental deaths and disabilities.
Similarities between PMJJBY and PMSBY
While the PMSBY and PMJJBY differences are notable, both policies also share some key similarities:
Government-backed schemes
Both policies have the backing of the government of India and are aimed at financial inclusion.
Linked to bank accounts
You must have a savings account from an official bank to enrol; premiums are annually auto-debited from the linked bank account.
Affordable premiums
The premiums for both plans are designed to offer decent coverage at a minimum cost.
Annual Renewal
Coverage under both schemes lasts for one year and can be renewed each year.
No medical screening
Enrolment requires minimal documentation and no health checks.
Accessible
These plans can be easily accessed through public and private banks across India.
Can be held together
There is no restriction on subscribing to both schemes simultaneously. By opting for both plans, you can get a combined cover of up to ₹4 lakhs at minimal premium costs.
These similarities ensure that regardless of your choice and the difference between PMSBY and PMJJBY, you receive an essential level of protection.
If you are looking for basic financial protection, it can be difficult to choose when pitting PMJJBY vs PMSBY. While one offers life insurance, the other guards against accidents. Together, they form a low-cost insurance foundation for financial security. By enrolling in both and keeping up with your PMSBY and PMJJBY renewal processes, you can make the most of these two important life insurance plans.
In addition, you can also opt for an individual life insurance plan from a private provider. This can allow you to enjoy personalised coverage in sync with your needs and preferences. For more details, you can reach out to your preferred insurance provider.
** Tax exemptions are as per applicable tax laws from time to time.
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