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

Suresh KP


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