Thursday, March 28, 2024
HomeNewsBusinessPMJJBY - Pradhan Mantri Jeevan Jyoti Bima Yojana

PMJJBY – Pradhan Mantri Jeevan Jyoti Bima Yojana

-

PMJJBY is a non-linked, non-participating, term insurance scheme that is yearly renewable and offers a risk cover against death on the policy buyer’s life. The scheme is backed by the Central Government of India and administered by LIC and other private-sector life insurance companies. As it is a pure-term insurance scheme, a death benefit is only offered if the life assured passes away during the policy’s tenure.

Eligibility Criteria of the PMJJBY scheme

The following are the eligibility criteria for the Pradhan Mantri Jeevan Jyoti Bima Yojana scheme: 

  • The Pradhan Mantri Jeevan Jyoti Bima Yojana scheme can be availed by any individual aged between 18-50 years.
  • Coverage to the life assured is provided by the policy until they reach 55 years.
  • The policy buyer must have a savings account with a participating bank to purchase this scheme.
  • To purchase the Pradhan Mantri Jeevan Jyoti Bima Yojana scheme, applicants must link their bank account with their Aadhaar card.
  • A medical certificate as proof of good health must be submitted if an individual purchase this policy after Nov 30, 2015.

Advantages of the PMJJBY scheme

The following are the main benefits of the Pradhan Mantri Jeevan Jyoti Bima Yojana scheme:

Death Benefit:

If the policyholder passes away during the tenure of the scheme, the full sum will be paid to the nominee by the insurer. The maximum amount an individual can receive as the death benefit under the scheme is Rs. 2 lakh. Even if the policy has been purchased through multiple insurance companies or via multiple saving bank accounts, the maximum amount payable won’t cross Rs. 2 lakh. The nominee will only be eligible to receive the death benefit amount for the first application in this case.

Maturity/Survival Benefits:

As it is a pure-term insurance plan, a cash value won’t be acquired, and no benefit will be provided at the policy’s maturity or in the form of survival benefits.

Tax Benefit:

The policy buyers or their nominees are eligible to claim tax benefits under Section 10(10D) and Section 80C of the Income Tax Act for the paid premium and the payout that the nominee may receive. However, you must consult with a tax advisor on this matter, as tax laws are subject to change without prior notice.

Key Features of the PMJJBY scheme

The following are the key features of the Pradhan Mantri Jeevan Jyoti Bima Yojana scheme:

  • The premium payable for this policy is very affordable as it is only Rs. 330 (excluding service tax).
  • The policy term for this scheme is one year. However, it is annually renewable. 
  • The sum assured of Rs. 2 lakh is offered under this scheme.
  • The lien period for this scheme is forty-five days, counting from the date of enrolment.
  • No free-look period is offered under this scheme.
  • Policy buyers can make a nomination as per Section 39 of the Insurance Act, 1938, when purchasing this policy.
  • The policyholders are provided a grace period of 30 days to pay their premiums.
  • The policy can only be renewed on June 1 every year, regardless of when the buyer has subscribed to it.
  • For new buyers, death during the lien period, that is, the first 45 days, is not covered. If death occurs during this period due to a non-accidental cause, no claim will be admitted.
  • The policy can be terminated by the policyholders at any point in time, depending on their needs.

List of Banks that offer the PMJJBY scheme

Various banks across the country offer the Pradhan Mantri Jeevan Jyoti Bima Yojana scheme, including:

  • Vijaya Bank
  • Yes Bank
  • State Bank of India
  • Union Bank of India
  • Kotak Mahindra Bank Ltd.
  • Punjab National Bank
  • ICICI Bank Ltd
  • IDBI Bank
  • Dena Bank
  • HDFC Bank
  • Canara Bank
  • Central Bank of India
  • Axis Bank
  • Bank of Maharashtra 
  • Andhra Bank
  • Allahabad Bank

Conclusion

PMJJBY is a very useful scheme introduced by the Indian Government that provides financial assistance to the families of the insured. You can easily access the scheme, as the procedure for enrollment is very simple and can be performed in any of the banks that have collaborated with the Pradhan Mantri Jeevan Jyoti Bima Yojana.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular