Financial Planning for the Underprivileged

1. Financial Planning for the Underprivileged BY NISHA SANGHAVI PRATHIBA GIRISH

2. Why this segment? • Very little access to information • They trust blindly, get taken for a ride with wrong products by people in power • They are not confident to demand services they are eligible for • They have no social security

3. Why financial planning for them? • The benefit this segment can derive is very high • They are trying to fulfil basic needs as against aspirational needs of our regular clients – tenement deposit, child tuition fees, etc • They are eager students and implement every suggestion with complete devotion • They do not have access to funds and a small mishap can prove disastrous

4. How can we help them? • Provide them information on how to access various Govt schemes • Advise them on their micro-savings so that they can fulfil their basic financial goals • Get them minimum basic features of financial security – insurance, bank a/c, access to micro-loans, etc • Educate the community – hold regular sessions in identified places, in their format – eg. Vernacular content, street plays, etc

5. Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)-Term Life • It is a term insurance available to everyone with a bank account between the age of 18 and 50 years • Insurance cover of 2L • Premium 330. Remains same from age 18 to 50. • Documents: self-attested medical certificate as a proof that he/she is not suffering from any critical illness mentioned in the policy declaration form. • Cover upto the age of 55 years • Can apply online through the bank website • The policy premium is deducted annually in June • If a person discontinues after a few years, he can re join by producing certificate of good health. • Claim will be processed by the documents required for claim are death certificate and claim form

6. Pradhan Mantri Suraksha Bhima Yojana (PMSBY) –Personal Accident • This is a personal accident cover • Eligiblity: People with a bank account in the age group of 18 to 70 • Sum insured 2L for accidental death or permanent total disability and 1 L for Permanent partial disability • Premium Rs 12 • Can apply online through the bank website • The policy premium is deducted annually in June • Document required for claim is death certificate for accidental death. Police complaint and hospital records for disability claim

7. Sukanya SamriddhiYojna (SSY) Scheme for a girl child in India •  It is a savings scheme that is especially designed for the welfare of the girl child • The account can be opened by the natural or legal guardian in the name of a girl child from the birth of the girl child till she attains the age of 10 years • Account can be opened for 2 children only. • Minimum deposit of 250 p.a and maximum deposit of 1.5L p.a • The account will remain operative for 21 years from the date of its opening or till the marriage of the girl after she turns 18.  • Deposits in an account can be made till completion of 14 years from date of opening the account • Rate currently applicable 8.1% • Partial redemption is allowed up to 50% of the total savings for fulfilling the purpose of higher education 

8. Pradhan Mantri Awas Yojana (PMAY) Credit Linked Subsidy Scheme • It provides interest subsidy on loan availed for purchase/ construction/ extension/ improvement of house • PMAY is available Economical Weaker Section (EWS)upto 3 L income,Lower Income Group (LIG)( 3-6L),Middle Income Group (MIG)(6-12L) (12-18L) • Upfront interest subsidy benefit on principal outstanding • Aadhaar number(s) of the beneficiary family are mandatory for MIG category • Interest subsidy will be available for a maximum loan tenure of 20 years or the loan tenure availed by the borrower whichever is lower • There is no cap on the loan amount or on the cost of property. • The additional loan beyond the specified limits, if any to be at non-subsidized rate.

9. Pradhan Mantri Awas Yojana (PMAY)

10. Atal Pension Yojana (APY) for Social Security in India • This is a government-backed pension scheme targeted at the unorganised sector. • Eligiblity: People with a bank account in the age group of 18 to 40yrs. • Tax Benefit : Tax benefit under Sec. 80 CCD for the contributions made. • Guaranteed Pension : Guaranteed minimum pension of Rs.1,000/- to Rs.5,000/- per month. If the actual returns on the pension contributions are higher then the pension will also be higher. • Pension to the Spouse : In case of death of the subscriber, pension would be available to the spouse. • Corpus to the Nominee : In case of death of the subscriber & the spouse both, then the pension corpus would be returned to the nominee.

12. Atal Pension Yojana (APY) for Social Security Exit procedure • On attaining the age of 60 years:The subscriber will have to submit the request to the associated bank for drawing the guaranteed minimum monthly pension or higher monthly pension, if investment returns are higher the guaranteed returns embedded in APY. The same amount of monthly pension is payable to spouse upon death of the subscriber. Nominee will be eligible for return of pension wealth accumulated till age 60 of the subscriber upon death of both the subscriber & the spouse. • In case of death of the subscriber due to any cause after the age of 60 years:Pension would be available to the spouse & the on the death of both of them (the subscriber & the spouse), the pension wealth accumulated till age 60 of the subscriber would be returned to the nominee. • Exit Before the age of 60 Years:Exit is generally not permitted, it may be permitted by PFRDA only in exceptional circumstances, i.e., in the event of the death of beneficiary or terminal disease etc., in line with the provisions for pre mature exit under NPS. • Death of subscriber before 60 yearsThe entire accumulated corpus under APY will be returned to the spouse/ nominee. However, pension shall not be payable to the spouse/ nominee.

13. AYUSHMAN BHARAT / Pradhan Mantri Jan Arogya Yojna (PMJAY) • It is Health insurance available to economically backward people in rural and urban areas who will be identified on the basis of data from the Socio-Economic Caste Census (SECC) 2011. • The cover will be Rs 5 lakh per family per year. • The entire process is paperless and cashless in public hospitals and empanelled private hospitals.  • There’s no limit on the age and size of the families

14. Pradhan Mantri Jan Arogya Yojna (contd)

15. Pradhan Mantri Jan Arogya Yojna (contd) How does the scheme work? • The scheme covers medical expenses for secondary care and most tertiary care procedures. No premium needs to be paid by the beneficiaries for the insurance cover. The insurance includes pre- and post-hospitalisation expenses. • All the empanelled hospitals will have ‘Ayushman Mitra’, a person recruited to coordinate with the beneficiaries of the scheme and provide assistance to patients. A helpdesk will also be provided at all the empanelled hospitals to identify eligibility, authenticate documents, and assist in the enrolment process. • Eligibility shall be checked by various processes, which include inspecting letters with QR codes that belong to be beneficiaries and authenticating the same. Those who wish to enrol for the scheme will be identified by the government through various means, but there are certain documents they will need to possess. A bank account is the most basic of these requirements.

16. A recent experience… NISHA SANGHVI

20. THANK YOU