Should you avoid these Pradhan Mantri Yojana Schemes?

Should we avoid these pradhan mantri yojanasShould you avoid these Pradhan Mantri Yojana Schemes?

Government is back with three new national social security schemes for Indians. These schemes are named as Pradhan Mantri Suraksha Bima Yojana (PMSBY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Atal Pension Yojana. These schemes were officially launched on 9th May, 2015. Around 5 crore 5 lakh people have already joined these scheme. This makes me amused as to why so many affluent people are interested in joining these peanuts yojanas. In this post I will be sharing details why affluent people should avoid these yojanas.

Let’s take a quick look at these yojanas.

About Pradhan Mantri Suraksha Bima Yojana (PMSBY)

Under PMSBY Accidental Insurance with risk coverage upper limit is 2 lakh. Do you think it is enough for you? As per me, you need accidental coverage at least 10 times more than your medical claim cover. This argument is enough to reject this scheme.

It is better to buy term plan with accidental coverage. If your existing term plan is covering accidental benefit you should simply avoid this scheme.

About Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)

Down side of Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is risk coverage limit of 2 lakh.  You need risk coverage of at least 10-15 times of your annual income or cover that will handle your family need in your absence. Considering current inflation level 2 Lac sum assured is not sufficient.

About Atal Pension Yojana (APY)

Atal Pension Yojana offers pension benefit to subscriber post retirement. Pension amount is in range of 1000 Rs/- to 5000 Rs/-. Do you think this pension amount is enough for your retirement? I think No. It is better to secure your retirement by investing in Equity, PPF or NPS.

Finally about Sukanya Samriddhi Yojana Scheme (SSYS)

Reason for not to make investment in Sukanya Samriddhi Yojana is withdrawal rule and locking period. Under this yojana 50% withdrawal is possible only after the girl child attend 18 years of age. You need to deposit money for 14 years and money remains blocked up to 21 years. People who don’t understand risk and people who cannot think beyond EEE can opt for this Yojana.

Should you avoid these Pradhan Mantri Yojana Schemes?

Please understand all these Yojana are not for rich and middle class people. These yojanas are for poor people. You can encourage your maid, driver, peon or any other poor person for taking these insurance policies. Don’t carry away by emotion. Invest in financial product if it is absolutely necessary and in line with your goal.

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This is guest Post written by Mr.Raviraj who runs MoneyExcel, a Personal Finance Blog in India. You can reach him on his mail ID


  • Ambika K Nagaraja Rao

    All these schemes are meant for inclusive growth, Social security of the mass and not addressed at the rich/middle class people who earlier to these schemes were also investing in equity, bonds and securing their future, covering the risk with the various insurance. Through these schemes these financial terms have become accessible to the entire population of our nation. For this, we should be thankful for the finance ministry and the government of India.

    However, the government has not debarred anybody from investing in these. If some thing of these is found to be inadequate for anybody, they still have the option to enhance their coverage in other advanced schemes of bank/Insurance.

    These are the social security measures which the majority of our population was unaware of.

    However, I would appreciate the finance ministry if they come up something like this for health insurance like medi-claim for the masses.

  • Nitish

    Few days back you were backing up PM Yojana and Schemes..2Lac matter a lot for a middle class family also. Today watching a movie and having cola & chips costs u 300 buck. So guys skip a movie and go for insurance. Rs. 2 lac matters a lot. There is a proverb “Jarurar padne be koi ek rupiah bhi ni deta”.

  • Ravi Challa

    I agree with what Ravi & Shivam is saying..whatever be the class,,it will provide additional support at this small price offered by Government..

  • Ravi

    I don’t agree with the opinion expressed here. There is no harm in joining these schemes even if you fall into the ” rich or middle class category” However, since the amount of insurance cover and pension is negligible, it is better to take a term plan and also invest in equities or mutual funds , PPF etc. ( as per risk appetite of the person). Where else can you get a cover so cheap , even if the amount is small. INR 330 or INR 12 is a very small amount. We end up spending this money on a pizza or a cup of coffee quite often. And this amount is only yearly.


    It is true that these schemes are not adequate to provide enough coverage and one should have the insurance cover mentioned by the author, but then I would like to point that the above article is incomplete, in the sense that it discourages anybody from middle class from joining the above schemes. It is understood that these schemes are not adequate to provide enough coverage but there is no harm in joining but it has to be insured that you do have sufficient amount covering any contingency situation including death. The above amount will be helpful in extending the already taken cover and also this is a very cheap offer from the gvernment that anyone may get, be it middle class, rich or poor. We all pay taxes and there is no harm in taking advantage of any such scheme offered by the government which provides additional support.

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