There is a wide variety of insurance and pension schemes which are introduced by government in last so many years. Brief description of the popular schemes is as follows:
New Pension Scheme (NPS) – NPS is a retirement savings scheme. All Indian citizens including NRI’s in the age group of 18 to 60 years can participate in this scheme.
Atal Pension Yojana – With investments of Rs. 42 per month for 40 years old, one can get a monthly pension of Rs. 1,000. Under this scheme, people aged 18 to 40 can subscribe and can get pension between Rs. 1,000 to Rs. 5,000.
Public Provident Fund (PPF) – The subscribers to PPF can invest a minimum of Rs. 500 to a maximum of Rs. 1, 50,000 in one financial year. The maturity period of PPF is 15 years and is extendable in a block of 5 years. Rate of interest in PPF is 8.70% per annum and is compounded annually.
Swavalamban Scheme – The scheme was launched to encourage influence the population from the unorganized sector to save more and more for their retirement. The Swavalamban initiative will be available for the subscribers of New Pension Scheme with a minimum contribution of Rs. 1,000 in a financial year and maximum Rs. 12,000. The subscriber will be allowed to exit at the age of 50 years or at a minimum period of 20 years, whichever is later.
Home pension fund
Varishtha Pension Bima Yojana (VPBY) – The scheme is meant for senior citizens who are aged 55 and above. The scheme offers a yield of 9% per annum on the investment.
Aam Aadmi Bima Yojana (AABY) – This scheme was mainly launched for rural landless households. Under this scheme, the head or one earning member is covered for a premium of Rs. 200 per annum per person. The insured will be covered for natural death, death due to accident, and permanent total or partial disability due to accident.
Pradhan Mantri Jan Dhan Yojana – Upon opening a bank account under this scheme and applying for Rupay Debit Card, one can automatically get an accident and life insurance cover of Rs. 1 lakh and Rs. 30,000. There is no premium required from the subscriber. The scheme is best suited for people in the unorganized sector.
Janashree Bima Yojana – This is a very old scheme and was launched in 2000. The scheme is most suitable for people who are below or who are marginally above the poverty line and are seeking life insurance protection. Anybody aged 18 to 59 and belonging to the specified 45 occupational groups can participate in this scheme.
Shiksha Sahayog Yojana (SSY) – On payment of Rs. 100 per month per child which is payable half yearly, one can get an additional benefit of scholarship for a maximum of two children studying in class 9th to 12th. This includes ITI courses. The same add on scholarship benefit is available in Aam Aadmi Bima Yojana.
Jeevan Madhur and Jeevan Mangal – Jeevan Madhur is a life insurance plan for people in the low income group. The plan is linked with savings account. On survival of the insured, insured will get the amount at the end of maturity and in case of death of insured during the policy tenure, total premiums paid by the insured along with the vested bonus will be paid to the nominee of the deceased. Jeevan Mangal is another micro insurance product and the returns on it are payable at the end of maturity on survival of the insured.
Universal Health Insurance Scheme (UHIS) – The scheme is launched with a view to improve the accessibility of health care to poor families. Under the scheme, the beneficiaries can get reimbursement of medical expenses for a maximum of Rs. 30,000. The medical expenses include hospitalization for the entire family. The scheme also includes Rs. 25,000 death cover in case of death of the subscriber due to accident.
National Agricultural Insurance Scheme (NAIS), Pilot Modified National Agricultural Insurance Scheme (MNAIS) and Pilot Weather based Crop Insurance Scheme (WBCIS) – These schemes were mainly launched for agriculturists.
Pradhan Mantri Suraksha Bima Yojana – With a premium of Rs. 12 per year, one can get accidental death and disability cover for Rs. 2 lakhs. In order to subscribe to this scheme, one needs to have a savings account in a bank that is offering this scheme.
Pradhan Mantri Jeevan Jyoti Bima Yojana – In this scheme, premium costs Rs. 330 per year. It offers a term insurance cover of Rs. 2 lakhs in case of death of the insured. This amount will be made available to the deceased subscriber’s dependents. Anybody who has a saving account in the bank offering this scheme and between the age of 18 to 70 years can participate in this scheme.
