Definition
PMJJBY and PMSBY (Government Insurance Schemes)
PMJJBY and PMSBY are low-cost government-backed life and accident insurance schemes offering basic cover for a tiny annual premium.
Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) offers a life insurance cover (payable on death from any cause) and Pradhan Mantri Suraksha Bima Yojana (PMSBY) offers accidental death and disability cover, both for a very small annual premium auto-debited from a linked bank account.
They provide affordable basic protection to a wide population, especially those without other insurance, and enrolment is simple through participating banks. The cover amounts are modest but meaningful for low-income households.
While these schemes are excellent value, the sums assured are small, so they should be seen as a safety net rather than adequate cover — those with dependants still need proper term insurance for sufficient protection.
Related terms
- Atal Pension Yojana (APY)APY is a government pension scheme aimed at workers in the unorganised sector, guaranteeing a fixed monthly pension after 60.
- Personal Accident CoverPersonal accident (PA) cover pays fixed benefits for death or disablement caused by an accident, on a benefit (non-indemnity) basis.
- Term InsuranceTerm insurance is pure life cover that pays your family a large sum if you die during the policy term, in exchange for a low premium.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.