• Choose From

    20+ Insurers

  • Plans Starting at

    ₹ 490/month*

  • Policies Sold

    0

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

*Please note that the quotes shown will be from our partners

Pradhan Mantri Jeevan Jyoti Bima Yojana

The central government of India has launched a new life insurance scheme, Pradhan Mantri Jeevan Jyoti Bima Yojana, for the growth of the poor and low-income section of society. As a pure term insurance plan, Pradhan Mantri Jeevan Jyoti Bima Yojana, is available for people between the age group of 18- 50 years.

PMJJBY is a renewal term insurance policy that, provides a yearly life insurance coverage of Rs. 2,00,000 in case of the demise of the insured person, at the most affordable premium rate of Rs. 330 per annum. In order to help you know more about the policy, we have discussed some of the key features and benefits offered by the policy.

Features of Pradhan Mantri Jeevan Jyoti Bima Yojana

The following are some of the salient features of Pradhan Mantri Jeevan Jyoti Bima Yojana.

  • Enrollment Period: The enrollment period of Pradhan Mantri Jeevan Jyoti Bima Yojana is 1st June of each year to the 31st of June of the subsequent year. During the enrolment period, the subscribers need to enroll and provide their auto-debit consent. In case the insurance buyer wants to purchase the policy after 1st June, then they will have to pay the premium of the policy year as a lump-sum from the month of joining.
  • Coverage: The Pradhan Mantri Jeevan Jyoti Bima Yojana offers coverage of Rs.2 lakh to the nominee of the scheme, in the event of the unfortunate demise of the insured person. The coverage amount offered to the beneficiary is tax-free. The Pradhan Mantri Jeevan Jyoti Bima Yojana offers a simple and hassle-free claim process.
  • Tenure: The Pradhan Mantri Jeevan Jyoti Bima provides coverage for a tenure of 1 year from the date of signing. As a term life insurance plan, the insured person can renew the PMJJBY every year up to the age of 55 years. In case the insured person wants to discontinue the plan then he/she can do it by not renewing the plan. On the other hand, the insured person can join the scheme anytime later by providing the heath certificate and paying the premium of the policy.
  • Premium: The Pradhan Mantri Jeevan Jyoti Bima Yojana offers insurance coverage at a minimum premium rate of Rs.330 per annum. The PMJJBY scheme is a lucrative option of investment for the low-income group of individuals. The premium of policy remains the same for subscribers of all age groups between 18 years- 50 years.
  • Tax- Benefit: The premium paid towards the PMJJBY scheme is applicable for tax exemption under Section 80C of the Income Tax Act.
  • Payment Mode: The bank auto-debits the premium from the savings bank account of the subscribers. This is the only way to pay the premium of the policy. The renewal period of the Pradhan Mantri Jeevan Jyoti Bima scheme is between May 25th – 31st May, the premium amount for renewal of the policy is also auto-debited from the savings bank account of the policyholder. In case the insured person wants to discontinue the policy then he/she can submit a cancellation requires to stop the premium payment deduction.

Pradhan Mantri Jeevan Jyoti Bima Yojana Benefits

Death Benefit

In case of the demise of the insured person the PMJJBY provides a death coverage of Rs2,00,000 to the beneficiary of the policy.

Maturity Benefit

As this is a pure term insurance plan, PMJJBY does not offer any maturity or surrender benefit.

Tax Benefit

The premium paid towards the policy is eligible for tax deduction under section 80C of the Income Tax Act. In case the insurance holder fails to submit form 15 G/15 H then any life insurance proceeds exceeding Rs. 1,00,000 will be taxable by 2%.

Risk Coverage

PMJJBY provides a risk coverage of 1 year. Nevertheless, as this is renewable policy it can be renewed yearly. Moreover, the policyholder can also opt for a longer duration of more than a year by auto-debit option linked to your savings bank account.

Eligibility Criteria of Pradhan Mantri Jeevan Jyoti Bima Yojana

  • Any person aged between 18- 50 years having a saving bank account can join this scheme through participating banks.
  • Even if you have multiple bank accounts, you can subscribe to this scheme by only one saving bank account.
  • In order to avail of the benefits offered by the policy, it is mandatory to link your aadhaar card to the participatory bank account.
  • Insurance buyers joining the scheme after the primary enrolment period ranging from 31st August 2015- 30th November 2015 will have to submit a self-attested medical certificate as a proof that he/she is not suffering from any critical illness mentioned in the policy declaration form.

For the convenience of our buyers, here we have shown the policy details in the tabular form.

Entry Age

Minimum

Maximum

 

18 years

50 years

Maximum maturity age

55 years

Policy Term

1 years( Renewable yearly)

Sum Assured

Rs2,00,000

Premium amount

Rs330(inclusive of Rs41 towards administrative charges)

Lien period

45 days from the enrolment date into the scheme

Claim Settlement Process of Pradhan Mantri Jeevan Jyoti Bima Yojana

The claim settlement process of the PMJJBY scheme is very simple and hassle-free. Let’s take a look at it.

Steps Taken by the Beneficiary

Step 1- In case of an unfortunate demise of the insured person, the nominee will have to visit the bank of the insured person, from where the savings bank account of the individual is linked to the scheme. The nominee will need to submit the death certificate of the insured.

Step2- The beneficiary will need to collect the claim form from the bank, the insurance company, etc.

Step3- Once, the nominee gets the claim form, he/she will have to fill the form thoroughly and submit it along with the required documents like discharge receipt, death certificate, photocopy of canceled cheque, bank details of nominee or bank account details of the policyholder.

Steps Taken by The Bank

Step 1- Once the nominee submits the claim form along with the required documents. The bank verifies the form and documents.

Step2- After verification, the bank submits the following documents to the designated insurance company.

  • Thoroughly filled claim form.
  • Discharge receipt.
  • Death certificate
  • Copied Canceled cheque of the nominee.

Steps Taken by the Insurance Company

Step1- After receiving the claim form and related documents from the bank, the insurance company verifies the filed claim from their end.

Step 2- After successful verification of the claim filed, the claim amount is transferred to the bank account of the beneficiary.

Once the claim is made, the maximum time period the insurance company can take to approve and disburse the claim amount is of30 days.

Pradhan Mantri Jeevan Jyoti Bima Yojana is a very beneficial scheme that can be subscribed to by simply linking the Aadhaar card with the participating bank account. This scheme was open for subscription from 1st June 2015-31st May 2016. The subscribers can enroll themselves after this date as well, provided payment of full annual premium payment is made and health certificate is submitted. 

As a government-backed insurance policy with the minimum premium rates, this plan is very advantageous for those individuals who have a low income. The plan efficiently secures the financial future of the individual and provides a backup so that they can fight against any kind of eventuality. The following are the three reasons that make this plan very beneficial -

  • The plan provides security to the family of the insured to cover any eventuality.
  • The plan has the simplest process of enrolment and switching.
  • With minimum premium rates offered by the policy, any eligible individual can subscribe to this policy without any hassles.

With all these benefits and features offered by the policy, this is certainly one of the best plans to purchase for the low-income section of the society.

Written By: PolicyBazaar - Updated: 21 July 2020
Search
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
Newsletter
Sign up for newsletter
Sign up our newsletter and get email about term plans.
SUBSCRIBE
You May Also Want to Know About
Best Term Insurance Plans in India 2020
Best Term Insurance Plans in India 2020 Finding the best term insurance plan is an impertinent necessity for an individual who has dependents or a family. It is a proven fact that the best term insurance offers the most ‘value for money’s pr...
1 Crore Term Insurance Plan
1 Crore Term Insurance Plan Amid the rising inflation, the expenses have also increased and so is the standard of living. If you are the only breadwinner in your family and do not want your loved ones to suffer due to the uncertainties that li...
Best Term Insurance Plans in 2020
Best Term Insurance Plans in 2020 The primary motive of buying a term insurance is to offer financial cover to your dependents in your absence. There are innumerable term insurance plans available in the market. You simply need to select a parti...
Types of Deaths Covered and Not Covered by Term Insurance
Types of Deaths Covered and Not Covered by Term Insurance When it comes to securing the future of your loved ones or doing a proper financial planning, term insurance is one of the most popular options for the insurance seekers. With affordable ...
All About Pradhan Mantri Suraksha Bima Yojana
All About Pradhan Mantri Suraksha Bima Yojana Pradhan Mantri Suraksha Bima Yojana has been announced by the government of India as one of the three social security schemes. PMSBY is an accidental insurance scheme that provides accidental death a...