The Pradhan Mantri Jeevan Jyoti Bima Yojana or PMJJBY is a type of renewable term insurance policy that provides annual life insurance coverage of Rs 2 lakh. This insurance policy is available for only Rs 330 per annum premium.
Features of the scheme
Some of the salient features of the Pradhan Mantri Jeevan Jyoti Bima Yojana are listed down below:
- The insured can renew the policy every year
- The scheme provides life coverage to the insured for 1 year
- As per his or her choice, the insured can exit the plan at any time and can resume it in future
- This plan offers a very low premium rate per annum, which is Rs 330 when compared to other term insurance policies. Moreover, the premium rate is the same for all age groups from 18 to 50 years
- The maximum insured in the policy is Rs 2 lakh
- The claim process offered by the policy is very customer friendly and convenient.
However, there are certain cases under which the death benefit paid by the policy is terminated. Some of these cases are:
- The age of the insured was more than 55 years
- The holder of policy is insured through various bank accounts
- In case the insured does not have enough balance of savings in their bank account to get the insurance done
- In case you fail to purchase the plan in the initial years, then you can join the policy in the subsequent years by paying the annual premium and submitting a self-attested health certificate.
Benefits of the scheme
Some of the benefits provided by the Pradhan Mantri Jeevan Jyoti Bima Yojana are given down below as:
- Tax benefit
That is the two words policy is eligible for tax under Section 80C of the Income Tax Act. In case the insured fails to submit Form 15G/15H, any life cover amount that exceeds Rs 1 lakh will be taxable at 2%
- Maturity benefit
Since it is a pure term insurance plan, Pradhan Mantri Jeevan Jyoti Bima Yojana does not offer any maturity amount or surrender amount
- Death benefit
The Pradhan Mantri Jeevan Jyoti Bima Yojana offers death coverage of Rs 2 lakh to the beneficiaries of the policy in case of death.
- Coverage benefit
The Pradhan Mantri Jeevan Jyoti Bima Yojana provides risk coverage of only 1 year. However, on the other hand, as this is a renewable policy, it can be renewed annually. In addition, the holder of the policy can even opt for a longer tenure of more than one year by the auto-debit option that is linked to your savings bank account.
Eligibility criteria:
The Pradhan Mantri Jeevan Jyoti Bima Yojana provides insurance coverage to anyone between the age bracket of 18 to 50 years and has a savings bank account.
In case you are an account holder in multiple banks, you can subscribe to the scheme only through one savings bank account
In order to avail of The benefits that are offered by the scheme, it is compulsory to link your Aadhaar card with the participating bank account.
The buyers of insurance that are joining the scheme after the primary enrolment period from the 31st of August 2015 to the 30th of November 2015 will have to submit a self-attested medical certificate as proof that he or she is not suffering from any critical illness.