Government recently launched three security schemes on May 9, 2015. These schemes intend to cover insurance for all as most of Indians are not covered.

Pradhan Mantri Suraksha Bima Yojana, Pradhan Mantri Jeevan Jyoti Bima Yojana and Atal Pension Yojana are the schemes.

Now let us understand what does these offer:

Pradhan Mantri Suraksha Bima Yojana

This scheme coveres accidental death and full disability - Rs.2 Lakh and for partial disability - Rs.1 Lakh. The insurance policy should be at least 10 times above the medi claim cover.

The cover of Rs 2 lakh is definitely not going to help, espcially as the amount is too small even for the rural class.

Pradhan Mantri Jeevan Jyoti Bima Yojana

The scheme offers cover of Rs.2 lakh in case of death for any reason. Any life insurance cover should be such that it should cover your family considering long term financial goals.

The sum of Rs 2 lakhs is simply too little in case the earning member is no more.

Atal Pension Yojana

This is a guaranteed pension by the government. The guaranteed minimum monthly pension for the subscribers ranged between Rs 1000 and Rs. 5000 per month.

But the question is will this amount be enough post retirement? Investing in Provident Fund, Equity and NPs can be better option.

Who should buy?

These schemes cover and provide very less insurance and life cover. These financial products are not suitable for middle class and rich individuals.

It can cover poor individuals. However, they may not know about insurance products and to reach out to them would be a challenge for the government.

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