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Pradhan Mantri Jeevan Jyoti Bima Yojana Scheme (PMJJBY) - Complete Guide

PMJJBY offers affordable life insurance coverage of ₹2 lakhs to eligible individuals aged 18 to 50 years in India, with an annual premium of ₹330 auto-debited from their bank accounts.

  • 14,512 Views | Updated on: Dec 04, 2024
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हिंदी में पढ़ें

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a Government-backed pure-term life insurance policy. In this policy, the government ensures that every Indian individual with a valid ID takes the PMJJBY term life insurance benefits. It can help them sort out their family’s financial stability in case of their unfortunate demise.

Key Takeaways

  • PMJJBY provides a life insurance cover of ₹2 lakh for individuals aged 18 to 50 years.
  • It offers affordable premiums of ₹330 annually, debited automatically from the policyholder’s bank account.
  • Enrollment in PMJJBY can be done through participating banks by filling out a simple application form.
  • Policyholders have the flexibility to renew their PMJJBY policy annually.
  • In the event of the policyholder’s demise, the nominee receives the sum assured of ₹2 lakh.

Let us understand the PMJJBY and discuss all the benefits of Pradhan Mantri Jeevan Jyoti Bima Yojana. PMJJBY details and other details related to the PMJJBY policy.

What is the PMJJBY Scheme?

PMJJBY stands for Pradhan Mantri Jeevan Jyoti Bima Yojana, which is a pure-term life insurance. It means that your family would get the sum assured if you face an unfortunate demise. In short, a death benefit. The Government of India designed the PMJJBY to safeguard the financial condition of financially weaker families or individuals below the poverty line.

A term life insurance policy like PMJJBY provides life insurance coverage only for a specific term. In the case of PMJJBY, this term is valid only for one year and can be renewed annually.

PMJJBY Scheme Details

The PMJJBY scheme offers life insurance coverage for deaths that occur for any reason. It is a one-year cover that is renewed annually. This scheme is provided or managed by various life insurance providers. They offer this scheme on comparable terms to the people on the Government’s terms and conditions.

Each year (1 June to 31 May), a person must choose the PMJJBY policy details. They can also grant a long-term option to continue; in such a case, the bank will automatically debit the account once a year. According to the government, all required to enroll in this program is a copy of your Aadhar card.

All individuals who have a bank account and are between 18 and 50 are eligible for this life insurance plan. However, those who enroll in the plan before age 50 can maintain their life insurance coverage through age 55 by paying a PMJJBY premium under the PMJJBY scheme details.

The ₹330 insurance scheme details are mandatory, and the amount will be automatically debited in a single payment. The bank will automatically debit the subscribers’ (policyholders’) account to pay the premium.

PMJJBY Eligibility

To opt for the Pradhan Mantri Jeevan Jyoti Bima Yojana, you must fulfill the scheme’s eligibility criteria. Here are the eligibility criteria for the PMJJBY scheme:

  • The PMJJBY is available for people in the age group of 18 years old to 50 years old age group.
  • Individuals must own a savings bank account.
  • They must be willing to share their consent to join/enable auto-debit from their bank account.
  • They must own an AADHAR card.

PMJJBY Features

PMJJBY is designed for the financially vulnerable class so that in the absence of the sole breadwinner, their family does not have to face financial hardships. Let us have a look at the top features of Pradhan Mantri Jeevan Jyoti Bima Yojana:

Tenure

The tenure of the PMJJBY policy is one year. As term life insurance, it can be renewed yearly for as long as the policyholder turns 55. If the policyholder opts out, they can join PMJJBY by paying the premiums and providing an authentic health certificate.

Coverage

The nominee of the PMJJBY policyholder is eligible to receive the death benefit if the policyholder’s unfortunate demise occurs during the policy term. The coverage claim process is simple and hassle-free.

Premium

The premium charged on PMJJBY is very affordable. In exchange for a one-year coverage, the policyholder pays a sum of ₹436/- per annum. Anyone between 18 to 50 years old can apply for it.

Tax Benefit

The policyholder is eligible for tax exemption under Section 80C of the Income Tax Act. Moreover, the coverage claims are tax-free.

Payment Mode

A savings bank account is mandatory with auto-debit consent. It is the only way a PMJJBY policyholder can pay their premium.

Payment/Renewal Cycle

The PMJJBY plan works from 1st June to 31st May. The premium renewal window is from 25th May to 31st May, and the amount will be auto-debited from the bank account.

Termination Factor

A PMJJBY policyholder can terminate their policy by submitting a cancellation request. However, your PMJJBY plan will also terminate if you don’t have a sufficient balance in your bank account linked to the PMJJBY to renew the policy.

Pradhan Mantri Jeevan Jyoti Bima Yojana Benefits

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is an insurance scheme launched by India to provide life insurance coverage to the economically weaker sections of society. The scheme was launched on May 9, 2015, and has successfully provided financial security to millions of families across India. The benefits of Pradhan Mantri Jeevan Jyoti Bima Yojana are as follows:

Death Benefit

The Jeevan Jyoti policy benefits the policyholder and provides a death payment of up to ₹2 lakh if the policyholder dies.

Tax Benefits

For any investments made, the Pradhan Mantri Jeevan Jyoti Bima Yojana is covered by Section 80C of the Income Tax Act 1961. However, these laws can be altered. Therefore, policyholders should look out for any policy reforms and changes in the law.

Risk Coverage

All potential threats to life are covered. The death benefits of Jeevan Jyoti Bima Yojana are paid to the policy’s beneficiaries if the policyholder passes away for whatever cause. Coverage starts 45 days following the enrollment date. However, the total assured amount will be paid if an accident-related death occurs during those 45 days.

Tenure

If the policyholder passes away for any reason, death benefits are paid to the policy’s beneficiaries. Coverage under this policy is provided from the enrollment day. However, the entire promised sum would be paid if an accident-related death occurred within those 45 days.

How Does PMJJBY Work?

Pradhan Mantri Jeevan Jyoti Bima Yojana aims to provide affordable life insurance coverage to the masses, particularly those in the economically weaker sections of society. Here, we will take a closer look at how PMJJBY works.

Enrollment Process

The enrollment process for PMJJBY is simple and can be done through any bank where the person holds a savings bank account. The person needs to fill out a form, provide his or her Aadhaar number, and consent to auto-debit the premium. The premium for the scheme is ₹330 per annum, which is automatically debited from the person’s savings account.

Claim Settlement Process

In case of the policyholder’s death, the policy nominee can claim the sum assured under the scheme. The claim settlement process is simple and can be done through the bank where the person holds the savings bank account. The nominee needs to submit the policyholder’s death certificate along with the claim form to the bank. The bank will then process the claim and transfer the sum assured to the nominee’s account.

How to Enroll for the PMJJBY Scheme?

Enrolling for PMJJBY is a straightforward process that can be completed within a few minutes. Here are the steps you need to follow to enroll in the PMJJBY scheme.

Step 1: Choose a Participating Bank

PMJJBY is offered through participating banks, including public sector, private, and cooperative banks. The first step is to identify a participating bank that offers the scheme. You can do this by checking the list of participating banks on the scheme’s official website or by contacting your bank directly.

Step 2: Fill out the Enrollment Form

Once you have identified a participating bank, complete an enrollment form. The form can be obtained from the bank’s website or branch. You must provide your personal details, such as your name, address, and date of birth.

Step 3: Submit the Enrollment Form

Once you have completed the enrollment form, you must submit it to the bank. You can submit the form online or by visiting the bank’s branch. If you submit the form online, you must upload a scanned copy of the form with your signature.

Step 4: Pay the Premium

The premium for PMJJBY is very low, at only ₹330 per annum. You must pay the premium in advance for one year. You can pay the premium either through auto-debit from your savings account or through a one-time payment.

Step 5: Confirmation of Enrollment

Once you have submitted the enrollment form and paid the premium, you will receive enrollment confirmation from the bank. The confirmation will include the details of the policy, such as the sum assured and the nominee’s details.

PMJJBY Policy Pro-Rata Premiums for Delayed Enrollments

The cost is ₹436 per year for each subscriber. If you join the PMJJBY scheme for the first time in the middle of the policy period, you can pay a part of the premium based on when you enroll.

Breakup of the Premium

  • If you join in June, July, or August, you must pay an annual premium of ₹330.
  • If you join in September, October, or November, you must pay ₹258.
  • If you join in December, January, or February, you need to pay ₹172.
  • If you join in March, April, or May, you must pay ₹86.

How to Cancel a PMJJBY Policy?

The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a government-backed life insurance scheme in India that aims to provide affordable coverage to the masses. Despite its benefits, policyholders might wish to cancel their PMJJBY policy in some instances.

Identify Your Bank

PMJJBY policies are linked to your bank account. The first step is to determine the bank where your PMJJBY policy is active. This is typically the bank from which the annual premium is debited.

Visit Your Bank Branch

Go to the bank branch where your PMJJBY policy is registered. It is advisable to visit the same branch to ensure a smooth cancellation process.

Request for Cancellation

Inform the bank officials about your intention to cancel the PMJJBY policy. You may need to fill out a policy cancellation form. Some banks might also allow cancellation requests through online banking or customer service helplines.

Provide Necessary Documentation

Be prepared to provide identification and your bank account details. You might also need to provide the policy number or any reference number related to the PMJJBY policy.

Submit a Written Request

In some cases, banks require a written request for cancellation. Write a letter to the branch manager stating your desire to cancel the policy and mentioning your account and policy details.

Confirm the Cancellation

After submitting your cancellation request, ask for a confirmation receipt or an acknowledgment from the bank. This ensures that your request has been processed.

Follow Up

In the subsequent months, monitor your bank statements to ensure that the annual premium is no longer being deducted. If you notice any discrepancies, follow up with the bank promptly.

PMJJBY Exclusions

While PMJJBY offers significant benefits, it’s essential to comprehend the exclusions – the scenarios where the policy does not extend coverage. This understanding is crucial for policyholders to manage expectations and plan effectively.

Suicide Clause

First 45 Days Exclusion: If the insured person dies by suicide within the first 45 days from the date of enrollment or renewal of the policy, no claim is payable. This exclusion is designed to mitigate the risk of adverse selection.

Pre-existing Illnesses

Death occurring due to pre-existing illnesses within 45 days of enrollment or renewal is not covered by PMJJBY. However, deaths due to accidents during this period are covered.

Risky Professions and Activities

The policy does not cover death resulting from participation in hazardous activities. This includes high-risk professions and engaging in dangerous sports or adventures, like skydiving or bungee jumping.

Illegal Activities

Death from participation in illegal or criminal activities is also excluded under this scheme. This ensures that the policy does not encourage or inadvertently support unlawful behavior.

War and Related Issues

Acts of War and Civil Commotion: Death due to war, invasion, act of a foreign enemy, hostilities, civil war, rebellion, revolution, insurrection, military or usurped power, or civil commotion is not covered under PMJJBY.

Substance Abuse

Alcohol and Drug Use: Death caused by the influence of alcohol or drugs not prescribed by a medical professional is excluded. This clause is aimed at preventing claims arising from irresponsible behavior.

Is PMJJBY a Good Scheme?

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is India’s government-backed life insurance scheme. Launched on 9 May 2015 by Prime Minister Narendra Modi, the scheme aims to provide life insurance coverage to people at an affordable premium. If the policyholder passes away for any reason, natural or accidental, the scheme provides the nominee with a sum insured of ₹2 lakhs. The policy covers people between 18 and 50 years of age and can be renewed annually.

The scheme’s premium is ₹330 per annum, which is comparatively lower than other insurance schemes. The policyholder must consent to have the premium auto-debited from their bank account. The policy is available through all banks and financial institutions.

PMJJBY has several advantages. Firstly, it provides life insurance coverage to people at an affordable cost. The scheme is especially beneficial for those who cannot afford the high premiums of other life insurance policies. Secondly, the scheme is easy to understand, and the application process is simple. People can easily enroll in the scheme through their bank account or online. Thirdly, the scheme provides a financial security net for the policyholder’s family. In case of the policyholder’s unfortunate demise, the sum assured can be used by the nominee to meet their financial needs.

PMJJBY has a few limitations, too. The policy covers only people between 18 and 50 years of age. It does not provide coverage to senior citizens or children. Secondly, the policy only provides coverage for the sum assured of ₹2 lakhs, which may not be sufficient for some families. Thirdly, the policy only covers the policyholder’s death and provides no benefits if the policyholder survives the term.

What is the difference between PMSBY and PMJJBY?

The Indian government launched two life insurance schemes, PMSBY and PMJJBY, to provide financial security and coverage to its citizens. Although both schemes are life insurance plan, they have some differences that one should be aware of before investing in them. Here is a comparison of PMSBY and PMJJBY.

Factors

PMSBY

PMJJBY

Purpose

Accidental insurance

Life insurance

Coverage

Death and disability due to accidents

Death due to any reason

Age limit

18-70 years

18-50 years

Premium

₹12 per annum

₹330 per annum

Sum Assured

₹2 lakhs in case of accidental death or total permanent disability, and ₹1 lakh in case of permanent partial disability.

₹2 lakhs in case of the policyholder’s death.

Renewal

Yearly, until the age of 70 years of the enrollment period

Yearly, until the age of 55 years

Benefits

Payment of the sum assured in case of accidental death or disability

Payment of the sum assured in case of the policyholder’s death

Conclusion

With so many features, ease of transaction, and payment, the Pradhan Mantri Jeevan Jyoti Bima Yojana is a great term life insurance plan, especially for people of the low-income group or those who lie below the poverty line. This scheme will financially enable families to look for another source of income in case of an unfortunate demise of the policyholder and support them for a sufficient duration. However, you are advised to read the terms and conditions of the policy before opting. It is a good pick for middle-class families, too, as they are getting decent coverage at a minimal amount compared to other policies in the market.

FAQs on PMJJBY

1

The Pradhan Mantri Jeevan Jyoti Bima Yojana has a return policy, right?

No, PMJJBY does not have a return policy. Once the premium is paid, it is non-refundable.

2

When was this plan first implemented?

The Pradhan Mantri Jeevan Jyoti Bima Yojana was first implemented on June 1, 2015.

3

Is the Pradhan Mantri Jeevan Jyoti Bima Yojana refundable?

No, the premium paid for PMJJBY is non-refundable.

4

How do I discontinue my PMJJBY insurance policy?

To discontinue your PMJJBY policy, you need to visit your bank branch and submit a written request for cancellation.

5

Can I enroll in PMJJBY if I already have existing life insurance coverage?

Yes, you can enroll in PMJJBY even if you already have existing life insurance coverage.

6

What happens if I miss paying the premium on time?

If you miss paying the premium on time, your PMJJBY policy will lapse, and you will not be covered.

7

Are there any tax benefits associated with PMJJBY?

Yes, the premium paid for PMJJBY is eligible for tax benefits under Section 80C of the Income Tax Act.

8

Is there an age limit for enrolling in PMJJBY?

Yes, the age limit for enrolling in PMJJBY is between 18 and 50 years.

9

Can I transfer my PMJJBY policy from one bank to another?

No, you cannot transfer your PMJJBY policy from one bank to another. You need to cancel the policy with the existing bank and re-enroll with the new bank.

10

Will my premium increase as I grow older?

No, the premium for PMJJBY remains the same regardless of age.

11

Can I surrender my PMJJBY policy before the completion of the policy term?

No, PMJJBY does not have a surrender option before the policy term ends.

Suggested Readings

1. What are Health Insurance Premiums? How are they Calculated?

2. Term Insurance: Most Common Term Insurance Myths Explained
Amit Raje
Written By :
Amit Raje

Amit Raje is an experienced marketer who has worked in various Fintechs and leading Financial companies in India. With focused experience in Digital, Amit has pioneered multiple digital commerce in India. Now, close to two decades later, he is the vice president and head of the D2C business department. He masters the skill of strategic management, also being certified in it from IIMA. He has challenged his challenges and contributed his efforts in this journey of digital transformation.
Amit Raje
Reviewed By :
Prasad Pimple

Prasad Pimple has a decade-long experience in the Life insurance sector and as EVP, Kotak Life heads Digital Business. He is responsible for developing user friendly product journeys, creating consumer awareness and helping consumers in identifying need for life insurance solutions. He has 20+ years of experience in creating and building business verticals across Insurance, Telecom and Banking sectors

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Features

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  • 3 Payout Options
  • Special Rates for Women
  • Option to exit the policy with premium refund at the age of 60*
  • Special Rates for Non-Tobacco Users
  • Free Medical Check Up every 5th year**
Want to Know More?
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Ref. No. KLI/22-23/E-BB/2435

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The information herein is meant only for general reading purposes and the views being expressed only constitute opinions and therefore cannot be considered as guidelines, recommendations or as a professional guide for the readers. The content has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Recipients of this information are advised to rely on their own analysis, interpretations & investigations. Readers are also advised to seek independent professional advice in order to arrive at an informed investment decision. Further customer is the advised to go through the sales brochure before conducting any sale. Above illustrations are only for understanding, it is not directly or indirectly related to the performance of any product or plans of Kotak Life.

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