Insurance is an essential service to enrol into. Times are unpredictable, and you never know what comes your way. Insurance is a soft-bed to free fall on when the going gets tough. The government actively acknowledges the importance of insurance and hence has started its own insurance scheme known as PM Suraksha Bima Yojana (PMSBY).
About the PM Suraksha Bima Yojana
The PM Suraksha Bima Yojana is an accident and disability insurance scheme where it covers the policyholder in cases like death and disability. There are, however, certain restrictions to the cause of death and the nature of the disability. For example, death by suicide is not covered under the PM Suraksha Bima Yojana. In the case of non-permanent disabilities or even partial disability without irrecoverable loss, the benefits of the scheme will not be applicable.
Features of the PM Suraksha Bima Yojana
The scheme has specifically been designed to offer financial aid and assistance to those in the lower-income group so that they have a chance to insure themselves against unfortunate events in life.
Here are some of the features that the PMSBY offers:
- The PMSBY offers a low-priced policy that can be purchased for just ₹12. You get accident insurance for this price, without having to spend a lot as compared to other policies available.
- In case of the unfortunate death of the policyholder, the money is given to the nominee. This is so done to maintain the welfare of the family.
- Auto-debit is a fine feature which this scheme offers. So forget having to go to your bank to renew your policy. This would be an automated process, and therefore, one less thing to worry about; one less chore to take care of.
- With the PMSBY, you have the choice to choose a long-term policy or stick with a short term policy. You can even opt for yearly renewability.
- Super easy exit and re-entry, in case you aren’t so sure about your finances. This offers flexibility to those who do not always have a steady source of income and leads to their finances dwindling regularly.
- It saves up on tax. Deductions according to section 80C and Sum insured of ₹1 lakh are non-taxable as per section 10 (10D) of the Income Tax act.
Eligibility criteria for the PM Suraksha Bima Yojana
In order to benefit from the features of the PMSBY, there are certain eligibility criteria to meet. Here there go, as follows:
- The minimum age needed to be a part of this scheme is 18 years
- The maximum age limit prescribed by the PMSBY is 70 years.
- The potential policyholder should have active savings account with a government bank
- The applicant’s savings bank account should be integrated with the person’s Aadhar card
- The applicant would have to make a minimum premium payment of ₹12.
The PMSBY is eventually a sure-fire way to ensure your future and make sure that any harm coming your way will not have a financial consequence thereafter. Life is unpredictable; and hence with this scheme, you get a chance to secure the future of your family members.