Pradhan Mantri Jeevan Jyoti Bima Yojana

The Pradhan Mantri Jeevan Jyoti Bima Yojana, commonly known as PMJJBY, aims to provide financial security to individuals aged between 18 and 50 years. To avail of this scheme, one needs to have a bank account and give consent for auto-debit. PMJJBY focuses solely on providing coverage in case of death, ensuring that the nominee receives the benefits. Unlike other insurance policies, PMJJBY is a straightforward term insurance plan with no investment element. The Aadhar card serves as the primary identification document for fulfilling the Know Your Customer (KYC) requirements for opening a bank account.

Eligibility

Here are some key features of the Pradhan Mantri Jeevan Jyoti Bima Yojana:

Eligibility Criteria: Individuals aged between 18 and 50 years who hold a savings account are eligible to enroll in the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) through participating banks.

Health Certification: Those enrolling after the initial period (either August 31, 2015, or November 30, 2015) must self-certify their good health and confirm the absence of critical illnesses listed in the Consent cum Declaration form, effective from the enrollment date or the aforementioned cut-off, whichever is earlier.

Single Account Participation: Despite having multiple bank accounts, individuals can only participate in the PMJJBY scheme using one savings account.

Features

Some of the important features of Pradhan Mantri Jeevan Jyoti Bima Yojana are listed below.

Simple Renewal: You can renew the policy every year, ensuring continuous life insurance coverage.

Enhanced Coverage: The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) policy offers life insurance worth 2 Lakh Rupees for just Rs. 330 in yearly premiums, providing better protection for you and your family.

No Maturity Benefits: Since it’s a term insurance plan, it solely covers life risks and doesn’t offer any maturity benefits upon completion of the term.

Compulsory Savings Account: To avail of this plan, you must hold a savings bank account, available at any partner bank in India collaborating with LIC and other private insurance providers.

Effortless Procedures: Life insurance coverage kicks in 45 days after enrollment. In case of a fatal accident, the full promised amount is paid out. Moreover, rejoining the scheme after leaving is hassle-free.

PMJJBY Premium Payment: Premiums are deducted from the policyholder’s savings bank account through the auto-debit feature on or before May 31st each year, based on the chosen option.

Working

To join PMJJBY, you just need a savings bank account with any participating bank. You can sign up through your bank’s website or mobile app.
This scheme is open to anyone aged 18 to 50, regardless of income or health.
PMJJBY coverage runs for a year, starting June 1 and ending on May 31.You have to renew your enrollment annually by paying the premium; otherwise, your coverage lapses.
If the insured person dies during the policy period, the beneficiary gets Rs. 2 lakhs.
The beneficiary can be the nominee or any other legally entitled person.
To claim the death benefit, the nominee must submit the insured person’s death certificate, policy document, and their own KYC documents to the insurance company.
The insurance company will process the claim and pay the benefit to the nominee within 30 days of receiving all necessary documents.

Benefits

Here are the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) benefits:

If the insured passes away, the nominee will receive a lump sum payment of Rs. 2 lakh.
The annual premium for PMJJBY amounts to Rs. 330, making it quite affordable for most individuals.
Enrollment for PMJJBY is possible through any bank or post office, without the necessity of undergoing a medical examination.
Once enrolled in PMJJBY, the premium will be automatically debited from your bank account on an annual basis.
The premium paid for PMJJBY qualifies for a deduction under Section 80D of the Income Tax Act, 1961.

Here are some additional benefits of PMJJBY:

If you change your bank or location, you have the option to transfer the policy to another bank or post office.
You have the flexibility to pay the premium annually, half-yearly, or quarterly, according to your preference.
The funds collected through PMJJBY are invested in government securities, guaranteeing the safety and security of your money.

Conclusion

Pradhan Mantri Jeevan Jyoti Bima Yojna is a financial and health security scheme introduced by the government of India. The scheme covers poor and vulnerable families across India. The scheme is also important for low-income earning families as it helps them in need in case of the death of the family head and provides them with a stable and secure life.