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

PMJJBY is an affordable and accessible life insurance scheme that provides coverage to individuals who may not have access to traditional life insurance policies. Read ahead to know more.

  • 7,396 Views | Updated on: Mar 13, 2024

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

Let’s understand more about the PMJJBY and discuss all Pradhan Mantri Jeevan Jyoti Bima Yojana benefits. PMJJBY details and other details related to the PMJJBY policy.​

What is PMJJBY Scheme?

If you are hearing a lot about PMJJBY in the last few years and do not understand what it is, we have got you covered. The acronym PMJJBY stands for Pradhan Mantri Jeevan Jyoti Bima Yojana. It is pure-term life insurance. This means that your family would get the sum assured in case 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 means that life insurance coverage is provided 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

Knowing all about the PMJJBY scheme details is of utmost significance for policyholders to understand the minute nuances of the policy and make the most of its advantages. The scheme offers life insurance coverage for deaths that occur for any reason. It is a one-year cover that is renewed annually. The program is provided by/managed by various life insurance providers prepared to provide the product on comparable terms required for this purpose, permissions, and agreements with banks and the post office.

A person must choose the PMJJBY policy details each year (1st June to 31st May). They can also choose to 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 that is required to enroll in this program is a copy of your Aadhar card.

All individuals who have a bank account and are between the ages of 18 and 50 are eligible for this life insurance plan. However, those who enroll in the plan before reaching the age of 50 can maintain their life insurance coverage through age 55 with the payment of a PMJJBY premiumunder the PMJJBY scheme details.

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

PMJJBY Eligibility

To opt for the Pradhan Mantri Jeevan Jyoti Bima Yojana, you need to fulfill the scheme’s eligibility criteria. Let’s look at the eligibility criteria mentioned in the PMJJBY scheme details on the official website of the Department of Financial Services.

  • 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 consent to join/enable auto-debit on their bank account.
  • They must own an AADHAR card.

PMJJBY Features

PMJJBY is an excellent initiative taken by the Government of India to ensure a family’s financial security. It is a term insurance plan that is designed for the financially weak class so that if the sole bread earner dies due to an unfortunate incident, they don’t have to face financial hardships.

Let’s have a look at the top features of Pradhan Mantri Jeevan Jyoti Bima Yojana.

Tenure

In the case of the PMJJBY, the policy’s tenure is one year. As it is a 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 in case of an unfortunate demise of the policyholder during the policy term. The coverage claim process is simple and hassle-free.

Premium

The premium charged on PMJJBY is very low. In exchange for a one-year coverage, the policyholder must pay 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 the consent of auto-debit. This is the only way a policyholder of the PMJJBY can pay their PMJJBY 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 choose to 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 the Government of India to provide life insurance coverage to the economically weaker sections of society. The scheme was launched on May 9, 2015, and has been successful in providing financial security to millions of families across India. The benefits of Pradhan Mantri Jeevan Jyoti Bima Yojana are as follows:

Death Benefit

Jeevan Jyoti policy benefits the policyholder and gives a death payment of up to ₹2 lakh, if the policyholder passes away.

Tax Benefits

The Pradhan Mantri Jeevan Jyoti Bima Yojana is covered by Section 80C of the Income Tax Act of 1961 for any investments made into it. These laws can, however, be altered. Therefore, policyholders are recommended to look out for any policy reforms and law amendments.

Risk Coverage

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

Tenure

Life threats of every kind are discussed. In the event that the policyholder passes away for any reason, the death benefits are paid to the beneficiaries of the policy. Starting on the day of enrollment, coverage is provided. However, the entire promised sum would be paid if an accident-related death occurred within those 45 days.

How Does PMJJBY Work?

PMJJBY, or Pradhan Mantri Jeevan Jyoti Bima Yojana, is a life insurance scheme launched by the Indian government in 2015. The aim of the scheme is 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 up a form, provide his or her Aadhaar number, and give consent for auto-debit of 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 nominee of the policy can make a claim for 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 death certificate of the policyholder 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 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 various participating banks, including public sector banks, private banks, 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 official website of the scheme or by contacting your bank directly.

Step 2: Fill out the Enrollment Form

Once you have identified a participating bank, you will need to fill out an enrollment form. The form can be obtained from the bank’s website or from the bank’s branch. You will need to 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 will need to submit it to the bank. You can either submit the form online or by visiting the bank’s branch. If you are submitting the form online, you will need to upload a scanned copy of the form along with your signature.

Step 4: Pay the Premium

The premium for PMJJBY is very low, at only ₹330 per annum. You will need to pay the premium in advance for one year. The premium can be paid 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 a confirmation of enrollment from the bank. The confirmation will include the details of the policy, such as the sum assured and the nominee’s details.

Is PMJJBY a good scheme?

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a government-backed life insurance scheme in India. Launched on 9th May 2015 by Prime Minister Narendra Modi, the scheme is aimed at providing 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 18-50 years of age and can be renewed annually.

The scheme’s premium is ₹330 per annum, which is comparatively lower than other insurance schemes available in the market. The policyholder has to give their consent to auto-debit the premium 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 family of the policyholder. 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 18-50 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 does not provide any 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, with the aim of providing financial security and coverage to the citizens of India. Although both the schemes are life insurance plans, 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 Enrollment period

Benefits

Yearly, until the age of 55 years

Benefits

Payment of sum assured in case of accidental death or disability

Payment of 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 the families in case of an unfortunate demise of the policyholder and support them for a sufficient duration to look for another source of income. However, it is 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.

Key takeaways

  • Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a Government-backed pure-term life insurance policy.
  • Your family would get the sum assured in case you face an unfortunate demise.
  • The scheme offers life insurance coverage for deaths that occur for any reason.
  • It is a term insurance plan that is designed for the financially weak class so that if the policyholder dies due to an unfortunate incident, they don’t have to face financial hardships.
  • The nominee of the PMJJBY policyholder is eligible to receive the death benefit in case of an unfortunate demise of the policyholder during the policy term.

FAQs

1

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

There is only one PMJJBY policy that a person with numerous Savings accounts may enroll in. The premiums will be refunded to the policyholder’s account if such a situation is found. Furthermore, no protection will be offered for such policies. The requirements must be followed when paying the premium.

2

When was this plan first implemented?

The Pradhan Mantri Suraksha Bima Yojana is a one-year accidental death and disability insurance policy that can be renewed annually. It was started in 2015.

3

How can I cancel my PMJJBY insurance coverage?

By the end of the year, customers must cancel their auto-renewal. Up until the covered person reaches the scheme’s eligibility age, PMJJBY renewal premiums will be subtracted.

4

How much does the PMJJBY scheme’s premium cost?

In the case of the insured’s death for whatever reason, the risk coverage under this policy is ₹2 lakh. The annual premium is ₹432, and if the subscriber so chooses, it will be automatically deducted from his bank account on or before the 31st of May of each annual coverage term.

- A Consumer Education Initiative series by Kotak Life

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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