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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 benefits of term life insurance. It can help them sort 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 scheme details, and other details related to the PMJJBY policy .
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. For starters, 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 the 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.
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 programme 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 enrol in this programme 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 enrol in the plan before reaching the age of 50 can maintain their life insurance coverage through age 55 with the payment of a premium under 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.
To opt for the Pradhan Mantri Jeevan Jyoti Bima Yojana, you need to fulfil 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 is an excellent initiative taken by the Government of India to ensure 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.
In 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.
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.
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.
The policyholder is eligible for tax exemption under Section 80C of the Income Tax Act. Moreover, the coverage claims are tax-free.
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 premium.
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.
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.
The benefits of Pradhan Mantri Jeevan Jyoti Bima Yojana are as follows:
Jeevan Jyoti policy benefits the policyholder and gives a death payment of up to ₹2 lakh, if the policyholder passes away.
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.
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.
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.
With such salient features, ease of transaction and payment, the Pradhan Mantri Jeevan Jyoti Bima Yojana is a great term life insurance plan, especially for the 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.