Financial inclusion and social security have always remained buzz words in the corridor of the power ever since independence. Each five-year plan would find a mention of both in one or the other way.
In the due course, India has seen Raisina Hills drawing uncountable schemes to ensure even the last citizen becomes the part of the mainstream financial system.
The basic principle of social security starts with citizen and his or her family remain financially secure in case of disability or death. Therefore, life insurance is the first step of securing the financial stability. Contrary to the theoretical principle, the ratio of insured lives against population remained more than miserable until Pradhan Mantri Suraksha Bima Yojana introduced by the present Modi administration.
People living below poverty line have always been favorite of policymakers, but Pradhan Mantri Suraksha Bima Yojana of Modi government brought even the middle class under the security net, through Term Insurance plans of various types. This scheme is available to people between 18 and 70 years of age with bank accounts.
These are the top 10 highlights of the Pradhan Mantri Suraksha Bima Yojana that every Indian must be aware of and must ensure those benefits from the scheme that never have Life Insurance.
10 Points of Pradhan Mantri Suraksha Bima Yojana:
- The total sum insured amount is Rs 2 Lacs for which a citizen is insured for.
- The premium for the policy is mere ₹ 12 (exclusive of taxes) per annum.
- The Annual premium for the policy under this scheme is excluded from 14% service tax.
- The life insurance policy covers both the disability as well as death.
- The premium of the policy is auto-debited from the bank account of the citizen.
- The policyholder is allowed to choose an option of long-term auto-renewal of the policy.
- The citizen is allowed to exit the life Insurance cover any time or can enter any time.
- In case of death or unrecoverable disability where both hands or feet are lost, the citizen is entitled to receive ₹ 2 Lacs under this scheme.
- In case of marginal disability, where eyes are lost if one hand or foot lost, ₹ 1 Lac is paid to the policy holder.
- The premium under this policy is eligible to be deducted from tax u/s 80D of the income tax act for up to ₹ 1 Lac.
The terms of accident cover
- If citizen closes the savings account, he or she will be bereft of accident cover under this policy.
- If citizen crosses the age limit of 70 years, he or she will is not covered for disability due to accident.
- If the premium is not paid, the policy remains terminated for the period until the premium is paid.
The Eligibility Criteria
- The citizen must be over 18 years of age and under 70 years of age.
- The citizen must have a savings bank account.
- The citizen can avail only one life insurance policy under this scheme despite having more than one savings account.
- The citizen should give a consent letter to auto debit of renewal premium.
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