Understanding social security benefits

It is the duty of the government to provide a dignified life to all its citizens, irrespective of their caste, class or gender. To attain this goal, countries run various social security benefits that may offer incentives in cash or kind to its citizens, especially those facing poverty, sickness, disability or retirement from work.

The Indian government, too, runs several programmes offering social security benefits to citizens across categories. But, people often fail to avail the benefits due to lack of knowledge and adequate information. Understanding social security schemes is important for all the citizens so that the benefits can reach those who need it the most.

For quick reference, here’s a look at major social security schemes run by the central government.

Atal Pension Yojana

The Atal Pension Yojana (APY) is a scheme that provides a monthly pension amount to the elderly people when they stop working. It is a voluntary pension scheme launched especially for the poor, the underprivileged and the workers in the unorganised sector.

Under the APY, a minimum guaranteed pension of ₹1,000-₹5,000 per month will start after the subscribers attain 60 years of age, depending on the contributions made by them for their chosen pension amount.

Alternatively, the spouse can also get an accumulated sum of the pension after the death of the contributor. The accumulated amount will be given to the nominee if the spouse is dead as well.

An APY account can be opened by any Indian citizen aged between 18 and 40 years. He/she should have a savings bank account/post office savings bank account. However, from October 1, 2022, any Indian citizen who is or has been an income-tax payer under the Income Tax Act 1961 as on the date of application will not be eligible to open a new APY account.

Pradhan Mantri Shram Yogi Maan-Dhan Yojana

The Pradhan Mantri Shram Yogi Maan-Dhan Yojana (PM-SYM) is a voluntary and contributory pension scheme, especially designed for unorganised workers in the age group of 18-40 years whose monthly income is below ₹15,000 and who are not a member of Employees' Provident Fund Organisation (EPFO)/Employees' State Insurance Corporation (ESIC)/National Pension System (NPS).

Under this scheme, beneficiaries are entitled to receive a monthly assured pension of ₹3,000 after attaining the age of 60 years. On the death of the beneficiary, the spouse is eligible for 50% monthly pension.

Monthly contribution ranges from ₹55 to ₹200 depending upon the entry age of the beneficiary. Under this scheme, 50% monthly contribution is payable by the beneficiary and equal matching contribution is paid by the central government.

Pradhan Mantri Jeevan Jyoti Yojana

The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a one-year cover term life insurance scheme, renewable from year to year, offering life insurance cover for death due to any cause.

Under the scheme, ₹2 lakh is payable on a subscriber’s death during the policy period. The premium payable is ₹436 per annum per subscriber.

The scheme is offered through Life Insurance Corporation of India (LIC) and other life insurance companies willing to offer the product with necessary approvals on similar terms, in collaboration with participating banks/post offices.

The premium will be deducted from the account holder’s bank/post office account through ‘auto debit’ facility in one instalment, as per the consent given by the subscriber at the time of enrolment.

All individual (single or joint) account holders of participating banks/post offices in the age group of 18 to 50 years are entitled to join. In case of multiple accounts held by an individual in one or different banks/post offices, the person is eligible to join the scheme through one bank/post office account only.

Pradhan Mantri Suraksha Bima Yojana

The Pradhan Mantri Suraksha Bima Yojana (PMSBY) is a one-year cover personal accident insurance scheme, renewable from year to year, offering protection against death or disability due to accident.

The risk coverage under the scheme is ₹2 lakh for accidental death and full disability and ₹1 lakh for partial disability. The premium payable is just ₹20 per annum per member.

The scheme is offered through the public sector general insurance companies and other general insurance companies willing to offer the product with necessary approvals on similar terms, in collaboration with participating banks.

All individual account holders (either single or joint) of participating banks/post offices, in the age group of 18 to 70 years, are entitled to join. In case of multiple accounts held by an individual in one or different banks/post offices, the person is eligible to join the scheme through one bank/post office account only.

Ayushman Bharat-Pradhan Mantri Jan Arogya Yojana

The Ayushman Bharat-Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) is the world’s largest health insurance scheme fully financed by the government.

It provides a cover of ₹5 lakh per family per year for secondary and tertiary care hospitalization across public and private empanelled hospitals in India. The scheme offers cashless access to health care services for the beneficiary in these hospitals.

Over 12 crore poor and vulnerable families, especially those living in scheduled caste and scheduled tribe households and families with no male members aged 16 to 59 years are eligible for these benefits.

To sum up

As responsible citizens, gather and spread the information about all other social security benefits offered by the government so that maximum people can avail their benefits and can access to all the basic amenities in life.