Banking and Insurance - Laws and Practice · Various Government Schemes

PMJJBY, PMSBY and Atal Pension Yojana Explained

Updated 11 October 2026 · Fact-checked

PMJJBY, PMSBY and APY are Central Government social security schemes routed through banks. PMJJBY gives ₹2 lakh life cover for ₹436 a year, PMSBY gives ₹2 lakh accident cover for ₹20 a year, and APY gives a guaranteed monthly pension of ₹1,000 to ₹5,000 from age 60. Answer by scheme, eligibility, premium, benefit and bank role.

Understand Social Security Schemes: PMJJBY, PMSBY and APY

Most Indians have no life cover, no accident cover and no pension. Three schemes launched in 2015 try to fix this at a very low cost. They work through bank accounts, so the bank is the delivery channel. The account holder gives a one-time consent and the premium is auto-debited each year. The cover year for both PMJJBY and PMSBY runs from 1 June to 31 May.

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a one-year renewable term life insurance scheme. If the insured dies for any reason during the cover year, the nominee gets ₹2 lakh. There is no maturity benefit. Cover is available to bank account holders aged 18 to 50 and can continue up to age 55 if premium is paid.

Pradhan Mantri Suraksha Bima Yojana (PMSBY) is a one-year renewable accident insurance scheme for bank account holders aged 18 to 70. It pays only for accidental death or disability. Death and total disability get ₹2 lakh. Partial disability gets ₹1 lakh. Natural death and illness are not covered.

Atal Pension Yojana (APY) is a pension scheme, not insurance. It is run by the Pension Fund Regulatory and Development Authority (PFRDA) and is open to citizens aged 18 to 40 with a bank or post office savings account. You choose a fixed monthly pension of ₹1,000, ₹2,000, ₹3,000, ₹4,000 or ₹5,000, payable from age 60. The contribution depends on your age at entry and the pension you choose. The earlier you join, the lower the contribution. The Central Government guarantees the minimum pension.

Banks are the backbone. They enrol subscribers, take consent for auto-debit, collect and pass on premium or contributions, keep records, and help nominees file claims. In PMJJBY and PMSBY the bank acts as master policyholder with the insurers. Amounts and conditions have been revised over time, so confirm the current figures in your study material before the exam.

Key rules to remember

PMJJBY: Age 18-50 at entry (cover up to 55) | Premium ₹436 a year | Death cover ₹2,00,000; Life cover for death from any cause. One-year term, renewable each year. Cover year runs 1 June to 31 May.
PMSBY: Age 18-70 | Premium ₹20 a year | Death or total disability ₹2,00,000 | Partial disability ₹1,00,000; Accident only. Cover year runs 1 June to 31 May, the same as PMJJBY. Total disability means loss of both eyes, both hands or feet, or one eye and one hand or foot. Loss of one eye, hand or foot is partial.
APY eligibility: Age 18-40 at entry | Contribution till age 60 | Pension from age 60; Needs a savings bank or post office account. From 1 October 2022, a person who is or has been an income-tax payer cannot join APY.
APY pension slabs: ₹1,000 | ₹2,000 | ₹3,000 | ₹4,000 | ₹5,000 per month; Guaranteed by the Central Government. Contribution depends on entry age and slab. At age 18, the ₹5,000 slab costs ₹210 a month. The same slab costs more if you join later, so check the PFRDA chart for other ages.
APY benefit on death: Subscriber dies after 60: spouse gets the same pension | Both die: nominee gets the corpus accumulated at age 60 | Subscriber dies before 60: spouse continues the account or exits and takes the accumulated corpus; Remember this chain. The nominee gets the corpus only when both die after age 60. It is a common short-note point.
Nature of scheme: PMJJBY and PMSBY = pure risk cover, no maturity value | APY = defined pension, not insurance; Use this to open any comparison answer.

How to solve Social Security Schemes: PMJJBY, PMSBY and APY questions

Exam questions ask you to explain a scheme, compare two schemes, or apply them to a short case. Use one fixed method so you do not miss marks.

1Identify which scheme or schemes the question is about. Name each in full with its abbreviation.
2State the nature: PMJJBY is life cover, PMSBY is accident cover, APY is a pension.
3Write eligibility: age band, bank account, consent and auto-debit, and any exclusion such as income-tax payers for APY.
4Write the money facts: premium or contribution, and the sum assured or pension.
5Write benefits and exclusions: what triggers payment and what does not, such as illness under PMSBY.
6State the role of banks: enrolment, auto-debit, forwarding premium, records and claim help.
7For a case, apply each fact to the person in the question, check age and cover year, and give a clear conclusion.
8Close with a one-line summary or a short comparison if two schemes are involved.

Quickest way: Three-scheme grid in 60 seconds

When to use it: Use it for comparison questions and short notes when time is short.

Draw columns for PMJJBY, PMSBY and APY on your rough sheet.
Fill rows in this order: type, age, premium or contribution, benefit, trigger.
Add a last row for the bank's role and write it once for all three.
Convert the grid into short lines in the answer. Lead with the one-line difference: life cover, accident cover, pension.
For a case, tick the age and trigger rows against the facts before writing the conclusion.

Common mistakes in Social Security Schemes: PMJJBY, PMSBY and APY

Saying PMJJBY covers accidental death only.
Both schemes carry ₹2 lakh cover and the names sound alike.
Fix: PMJJBY covers death from any reason. PMSBY covers accident only. Link J with Jeevan (life) and S with Suraksha (accident).
Giving the same age limit for PMJJBY and PMSBY.
Students remember '18' and forget the upper limit.
Fix: PMJJBY: enter at 18 to 50, cover to 55. PMSBY: 18 to 70.
Calling APY an insurance scheme or promising a lump-sum maturity.
It is grouped with two insurance schemes.
Fix: APY is a pension scheme under PFRDA. It pays a fixed monthly pension from age 60. The nominee gets the accumulated corpus when both subscriber and spouse die after age 60. If the subscriber dies before 60, the spouse can continue the account or exit and take the accumulated corpus.
Writing that APY pension varies with returns.
Confusion with the National Pension System.
Fix: The pension slab is fixed and guaranteed by the Central Government. The contribution is what changes with entry age.
Treating partial disability as eligible for ₹2 lakh under PMSBY.
Students learn only the headline figure.
Fix: Partial disability, such as loss of one eye, hand or foot, pays ₹1 lakh. Total disability and death pay ₹2 lakh.
Ignoring the bank's role or treating it as just a collection agent.
The question seems to be about insurance only.
Fix: Add a line on enrolment, consent for auto-debit, remittance, record keeping and claim facilitation. Mention that the bank is the master policyholder in PMJJBY and PMSBY.

Worked examples

Example 1

Distinguish between PMJJBY and PMSBY.

Show the solution

Nature: PMJJBY is a one-year renewable term life insurance scheme. PMSBY is a one-year renewable accident insurance scheme.
Eligibility: PMJJBY is for account holders aged 18 to 50, with cover up to 55. PMSBY is for account holders aged 18 to 70.
Premium: PMJJBY costs ₹436 a year. PMSBY costs ₹20 a year.
Benefit: PMJJBY pays ₹2 lakh on death from any cause. PMSBY pays ₹2 lakh on accidental death or total disability and ₹1 lakh on partial disability.
Common features: both are auto-debited from the savings account, both are renewed annually for a cover year of 1 June to 31 May, neither has a maturity benefit, and the bank enrols members and passes on premium.

Answer: PMJJBY is life cover for death from any cause at ₹436 a year for ages 18 to 50. PMSBY is accident-only cover at ₹20 a year for ages 18 to 70, paying ₹2 lakh for death or total disability and ₹1 lakh for partial disability.

Example 2

Anil, aged 18, joins APY for a monthly pension of ₹5,000 and pays ₹210 a month until age 60. (a) Find his total contribution. (b) State what happens if he dies at age 65 and what happens after his wife also dies.

Show the solution

Contribution period: 60 − 18 = 42 years.
Number of monthly payments: 42 × 12 = 504.
Total contribution: 504 × ₹210 = ₹1,05,840.
Anil dies at 65, after pension has begun. His spouse receives the same pension of ₹5,000 a month.
When the spouse also dies, the nominee receives the corpus accumulated up to Anil's age of 60. (Had Anil died before 60, his wife could have continued the account or exited with the accumulated corpus.)

Answer: (a) Anil contributes ₹1,05,840 in total, ignoring any late-payment charges. (b) His wife gets ₹5,000 a month for life, and after her death the nominee gets the corpus accumulated at his age 60.

Exam tips

Learn the numbers as a grid: ages 50 and 70 for the two insurance schemes, age 40 and 60 for APY, premiums ₹436 and ₹20, cover ₹2 lakh and ₹1 lakh.
In case questions, check the age and the trigger first. An illness death is covered by PMJJBY but not by PMSBY.
Always add the bank's role. It links this topic to the paper's banking theme and is easy to forget.
State that figures may be revised and write the current ones from your study material. This shows awareness without losing marks.
Use the one-line contrast: PMJJBY life, PMSBY accident, APY pension. Then expand.

Practice questions from Various Government Schemes

Social Security Schemes: PMJJBY, PMSBY and APY: frequently asked questions

What is the difference between PMJJBY and PMSBY?

PMJJBY is term life cover for death from any cause, with a premium of ₹436 a year and entry age 18 to 50. PMSBY covers accidental death and disability only, at ₹20 a year, for ages 18 to 70. Both give ₹2 lakh on death.

What is the premium and cover under Pradhan Mantri Suraksha Bima Yojana?

The premium is ₹20 a year, auto-debited from the savings account. It pays ₹2 lakh for accidental death or total disability and ₹1 lakh for partial disability.

Who is eligible for Atal Pension Yojana and what are the pension slabs?

Indian citizens aged 18 to 40 with a savings bank or post office account can join. From 1 October 2022, a person who is or has been an income-tax payer cannot join. The monthly pension from age 60 can be ₹1,000, ₹2,000, ₹3,000, ₹4,000 or ₹5,000, as chosen at entry.

What role do banks play in these schemes?

Banks enrol account holders, take consent for auto-debit, collect premium or contribution, and pass it to the insurer or pension system. They keep records and help nominees with claims. In the two insurance schemes the bank is the master policyholder.