Life insurance is a critical element of your future planning. It can be particularly important for those with young children who will need financial support for many years to come. In these cases, life insurance can provide peace of mind for the policyholder.
What is PMJJBY?
Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a government-backed life insurance scheme that was launched in 2015. The scheme was launched to provide affordable life insurance coverage to people across the country. Any individual between the age group of 18 to 50 years can enroll in this scheme. The scheme provides a sum assured to the family or nominee in the event of an unfortunate death of the policyholder. Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) does not provide health insurance.
Given below in the table are the details about this scheme:
PMJJBY scheme details |
|
PMJJBY full form |
Pradhan Mantri Jeevan Jyoti Bima Yojana |
Policy type |
Life insurance policy |
Premium |
Rs. 330 per annum |
Sum assured |
Rs. 2 lakh |
Eligibility criteria |
Individuals between 18 to 50 years with a savings bank. |
Automatic renewal |
Yes, if the policyholder maintains sufficient balance in their savings bank account. |
Nomination |
The nominee will be eligible for the sum assured in case of the policyholder's death. |
Discontinuation of policy |
The policy will lapse if there is insufficient balance in the savings account for payment of the renewal premium. In that case, the policy can be reinstated by paying the entire overdue premiums, subject to medical underwriting. |
Claim settlement |
In case of the policyholder's death, the nominee should submit a claim form along with a death certificate and other necessary documents.(Check claim settlement ratio in health insurance) |
Benefits of Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
Below are some of the benefits of the Pradhan Mantri Jeevan Jyoti Bima Yojana scheme:
- Affordable premium:
The premium for this scheme is as low as Rs. 330 per annum, which makes it affordable for every individual who wants to secure their family's future. - High sum assured amount:
The nominee of the policyholder gets the sum assured in case of the policyholder's death. This amount helps secure the financial future of the deceased policyholder's family. - Easy enrolment process:
The enrolment process for this scheme is hassle-free, and an individual can enrol themselves in this scheme by visiting their bank. - No medical examination:
An individual does not have to undergo any medical examination while enrolling in the scheme. - Tax benefits:
The premium paid towards the scheme is eligible for tax benefits under Section 80C of the Income Tax Act. - Automatic renewal:
The policy gets renewed automatically every year if the policyholder maintains a sufficient balance in their savings bank account.