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Fincash » Government Schemes » Pradhan Mantri Jeevan Jyoti Bima Yojana

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)

Updated on July 15, 2024 , 59182 views

To help you secure the financial situation of your family in your absence, the government has come up with Pradhan Mantri Jeevan Jyoti Bima Yojana. With minimum yearly premiums and an easy claim process, this scheme will help your family stay stable. In this post, let’s find out what is Pradhan Mantri Jeevan Jyoti Bima Yojana and how you can apply for PMJJBY online.

What is PMJJBY?

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a central government scheme of new Life Insurance. It is a one-year life insurance scheme, which is renewable from year to year, the scheme offers coverage for death up to Rs. 2 lakh in case of the demise of an insured person. PMJJBY aims for the growth of a poor and low-Income section of society. This government scheme is available for people between the age group of 18-50 years.

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)

Important aspects of PMJJBY Scheme

There are benefits for the Indian citizens under Pradhan Mantri Jeevan Jyoti Bima Yojana are as follows:

  • The insurance provides life coverage for 1 year
  • An insured person can renew the policy every year
  • The insurance policy offers a maximum sum up to Rs. 2 lakh
  • An insured person can quit scheme at any time and can rejoin in future
  • The settlement of the policy is very simple and friendly
  • This government scheme has a Term Insurance policy, which offers a low premium rate per year of Rs. 330
  • There are some cases where the death benefit is terminated
  • If the person has enough Bank balance

Note: If you Fail to purchase the scheme in the initial years, you can join the insurance policy in next years by paying the annual premium and by submitting the self-attested certificate

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Advantages of Pradhan Mantri Jeevan Jyoti Bima Yojana

  • Death Benefit

    The demise of the insured person provides a death coverage of Rs. 2 lakh to the policyholder

  • Maturity Benefit

    This is a pure term insurance scheme, but it does not offer any maturity

  • Risk Coverage

    Pradhan Mantri Jyoti Bima Yojana provides a risk of 1 year as it is a renewable policy so it can be renewed yearly. In addition, a policy owner can also opt for a longer duration for the insurance policy by doing an auto-debit from the Savings Account

  • Tax Benefit

    The policy is eligible for the Deduction under Section 80C of the income tax Act. If the insured person fails to submit the Form 15G/15H, then the life insurance exceeding Rs. 1 lakh, will be taxed 2%

Highlights of PMJJBY

Here are some highlights of this scheme that you must know before enrolling:

Features Details
Eligibility 18 – 50 years of age
Requirement A savings bank account with the consent to enable auto-debit
Policy Period The cover is for a year, beginning on June 1 and ending on May 31. If you opened your savings account on or after June 1, the cover will begin from the date of your request and will end on May 31
Revised Annual Premium Structure June, July, and August - Rs. 436. September, October, and November - Rs. 319.5. December, January, and February - Rs. 213. March, April, and May - Rs. 106.5
Payment Mode The premium will get auto-debited from your savings account. For the renewal, the deduction will take place between May 25 and May 31 unless you have requested the cancellation

Keep in mind that the amount of the premium will be decided on the Basis of the date of request to begin the scheme and not according to the debit date from your account. For instance, if you placed a request for this insurance on August 31, 2022, the annual premium worth Rs. 436 will be applied to you for the whole year.

Eligibility

  • An individual age between 18-50, years having a saving bank account can join Pradhan Mantri Jeevan Jyoti Bima Yojana
  • You can only join by a single savings bank account. If an individual has multiple accounts and trying to join through all accounts. then it cannot be considered
  • To avail the benefits of the policy it is mandatory for an individual to link aadhar card to the bank account
  • If the insurance buyer joins the policy after 31 August 2015- 30 November 2015, then the individual has to give a self-attested medical certificate as proof that you are not suffering from any illness
Particulars Features Limit
Age Minimum- 18 Maximum- 50
Maximum Maturity Age 55 years
Policy term 1 year (Renewable yearly)
Maximum Benefit Rs. 2 lakh
Premium Amount Rs. 330 + Rs 41 for administrative charges
Lein period 45 days from the enrolment of the scheme

Termination of Pradhan Mantri Jeevan Jyoti Bima Yojana

There are some such scenarios where your PMJJBY insurance scheme can get terminated as well, such as:

  • If you have reached the age of 55 years
  • In case your bank account has been closed or doesn’t have enough amount to be debited for the premium
  • If you have multiple coverages under this scheme

Terms and conditions of PMJJBY Scheme

If you are planning to get this insurance scheme, here are some terms and conditions that you must keep in mind before making a decision:

  • If you have multiple savings account with a bank, you can get the policy issued only once. If multiple policies are discovered, their premiums will be refunded to your account, and the claims will be forfeited
  • If your enrolment is beginning from June 1, 2021, the risk cover will begin after 30 days have been completed. During this period, death because of an accident will be exempted
  • If your mobile number is not linked to your savings account, the policy will not be issued
  • Your response through the registered mobile number will be regarded as your consent for auto-debit
  • If any information given by you is found untrue, the policy will be cancelled, and the premium paid will not be refunded
  • Aadhar will be considered the primary and vital KYC for the bank account
  • This scheme is provided by a life insurance corporation and all the other life insurers who provide similar products

Apply for Pradhan Mantri Jeevan Jyoti Bima Yojana

You can apply for this insurance scheme through the net banking option. For this, follow the below-mentioned steps:

  • Log in to your net banking account
  • Click on Insurance tab
  • Select PMJJBY scheme
  • Click Enrol Now
  • Choose the savings account through which you would like to pay your premium
  • Add all the other required information
  • Click Submit

How to cancel the premium for PMJJBY Insurance Scheme?

If you don’t want to continue with this insurance scheme and would like to cancel it, there are two different methods:

  • You can visit the branch of your bank and request the cancellation of auto-debit from your savings account
  • You can stop using or funding the savings account linked with the PMJJBY insurance scheme

Documents to claim PMJJBY Scheme

If you wish to get a claim for your PMJJBY insurance scheme, the following is the list of documents you will have to submit:

  • Appropriately filled claim intimation form that you can take from your bank’s website
  • Death certificate of the insured person
  • Nominee’s bank account details, such as cancelled cheque copy, bank statement, and passbook with the account number and beneficiary’s name printed on them
  • Nominee’s photo ID proof

Conclusion

Pradhan Mantri Jeevan Jyoti Bima Yojana is a beneficial scheme for low-income individuals. It can be easily availed by linking aadhar card with the savings bank account. It is a government-backed insurance plan with the minimum premium rates. By bringing such an initiative, the government of India has made it easier for lower-classes and middle classes to secure their lives to a great extent. Considering that the premium is minimal and that people will only have to pay it annually, saving for the future of the family will not be an arduous task anymore.

Frequently Asked Questions (FAQs)

1. What are the reasons for death covered under PMJJBY insurance scheme?

A: The scheme compensates for death due to any reason, including death because of natural calamities, such as floods, earthquakes, and other convulsions. It also includes death because of murder and suicide.

2. Who will be administering this scheme?

A: The Pradhan Mantri Jeevan Bima Yojana will be administered via LIC and other life insurance firms that are willing to provide this product with required approvals on the same terms in association with participating banks.

3. Can I rejoin the scheme if left?

A: Yes, if you had left the scheme before, you can rejoin it at any time by paying the premium and providing a self-declaration of adequate health.

4. Who will be the master policyholder for this scheme?

A: The participating bank will be the master policyholder of this scheme.

5. Can I get any other insurance scheme in addition to PMJJBY?

A: Yes, you can get any other insurance scheme along with this one.

6. How do I check my PMJJBY status?

A: To check your PMJJBY status, you can get in touch with your bank and ask for information regarding the status of your insurance plan.

7. Is PMJJBY refundable?

A: No, it is not refundable. Pradhan Mantri Jeevan Jyoti Bima Yojana is a term insurance plan and doesn’t provide any surrender or maturity benefits. The premium that you will be paying is eligible for tax benefits under section 80C of the Income Tax Act. Since this is a renewable policy, you can renew it each year.

Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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