Insurance-focused FD for Raksha Bandhan will take care of premiums for PMSBY & PMJJBY for 10 years
For the coming Raksha Bandhan (August 29), gift your sister an innovative insurance-focused fixed deposit which will take care of premiums for two insurance schemes — Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) — for 10 years. The fixed deposits come at nominal amounts of Rs 201, Rs 351 and Rs 5,001. You can buy a Pradhan Mantri Sneh Bandhan Yojana as a bankers’ cheque or gift card and your sister can deposit it in her existing account or even open a new account with zero balance.
Suraksha Deposit Gift Cheque
For Rs 201, this is the most basic of the three variants of the gift instruments. It will facilitate premium payment for Pradhan Mantri Suraksha Bima Yojana for several years. Of the Rs 201 gift, Rs 12 will be paid to the insurance company as the first year’s premium and another Rs 12 will be deposited in the savings account for payment of second year premium. The balance Rs 177 will be invested in a term deposit for 10 years at the current interest rate of 8% per annum. It will earn an interest income of Rs 14.16 which can take care of the annual insurance premium of Rs 12 at the current rate. In case the recepient is already covered for the current year under this plan, the the amount will be utilised for premium payment in subsequent years.
Jeevan Suraksha Gift Cheque
A one-time fixed deposit of Rs 351 will take care of one year premium for both the insurance schemes — PMSBY for Rs 12 and PMJJBY for Rs 330. The balance of Rs 9 will be deposited to the savings account of the insured and the subsequent insurance premium will have to be deposited by the insurer for continuing the insurance cover.
Suraksha Deposit Yojana
A one-time deposit of Rs 5,001 will take care of the premium for both the insurance schemes — PMSBY and PMJJBY — for 10 years. Of Rs 5,001, the first year premium amount of Rs 342 for the two schemes will be deducted immediately and another Rs 342 will be deposited in the savings account of the insurer towards payment of second year premium. The balance amount of Rs 4,317 will be invested in a term deposit which will earn 8% interest per annum. The annual interest income of Rs 345.36 will be used to pay premium for both the insurance at the current rate till the date of the term deposit.
Low-cost insurance cover
To provide a social security cover, Prime Minister Narendra Modi had launched two insurance schemes in May. The PMJJBY provides life insurance cover for one year, which will be renewable every year. The risk coverage is Rs 2 lakh in case of death due to any reason and subscribers who wish to continue the cover beyond the first year will have to give consent for auto-debit before May 31 every year. It is available to those in the age group of 18 to 50 and have a bank account. Those who join the scheme before completing 50 years can continue to have the risk of life cover up to the age of 55 years, subject to payment of premium. The bank account will have to be linked to the Aadhaar number.
This cover can be in addition to any other insurance scheme the subscriber has taken. Moreover, like all insurance products, the premium paid is eligible for tax deduction under Section 80C of the Income Tax Act, 1961. In case of multiple saving bank accounts held by an individual in one or different banks, the person would be eligible to join the scheme through one savings bank only and Aadhaar is the primary KYC for the bank account.
The PMSBY is an accidental death insurance cover for Rs 2 lakh and is available to people in age group 18 to 70 years with a bank account. The premium is Rs 12 per annum and the amount is auto-debited by the bank from the subscribers account. A person has to opt for the scheme every year. He can also prefer to give a long-term option of continuing in which case his account will be auto-debited every year by the bank. The premium paid will be tax-free under Section 80C and also the proceeds amount will get tax-exemption under Section 10(10D).
Both the schemes have been huge success. As on August 8, over 2.73 crore people have taken PMJJBY cover and over 8.1 crore people have enrolled for PMSBY. The share of enrollment of men is 63%. Analysts say both the insurance schemes will help drive insurance penetration in the country.
Bond of love
* Suraksha Deposit Gift Cheque of Rs 201 will facilitate premium payment for Pradhan Mantri Suraksha Bima Yojana for several years
* Jeevan Suraksha Gift Cheque for Rs 351 will take care of one year premium for both the insurance schemes — R12 for PMSBY and Rs 330 for PMJJBY
* A one-time deposit of Rs 5,001 into Suraksha Deposit Yojana will take care of the premium for both the insurance schemes — PMSBY and PMJJBY — for 10 years
* You can buy a Pradhan Mantri Sneh Bandhan Yojana as a bankers’ cheque or gift card and your sister can deposit it in her account