Pradhan Mantri Jeevan Jyoti Bima Yojna (PMJJBY)

Pradhan Mantri Jeevan Jyoti Bima Yojna is a life insurance scheme which is backed by the Central Government of India. The scheme was launched in May 2015 by Prime Minister Narendra Modi in Kolkata. The objective behind this scheme is to provide financial security to the needy, underprivileged & lower-income segments of the society. PMJJBY is a pure term insurance plan and can be availed by individuals in the age group of 18 -50 Years.

This scheme is a one-year insurance policy which provides a yearly life insurance coverage of ₹ 2,00,000 in case of death of the insured person due to any reason. The premium for the scheme is set at a very affordable price of ₹ 330 per annum.

Details of PMJJBY:

Features of PMJJBY:

• Enrollment Period: The enrollment period is from 1st June to 31st June of every subsequent year. In the enrollment period, the subscriber needs to give an auto-debit consent to the bank or the insurance company.
• Insurance Coverage:  PMJJBY gives an insurance coverage of ₹ 2,00,000 to the nominee in case of the death of the insured person. The death benefit amount which is paid to the nominee is tax-free. Also, the process to claim the amount is very simple and hassle-free.
• Lien Period: The policy has a lien period of 45 days i.e the coverage is only applicable after the completion of the initial 45 days from the date of purchase. However, the coverage is payable in case of death of policyholder by accident during this period.
• Tenure:  It gives coverage for a period of 1 year from the date of availing the scheme. As it is a one-year insurance policy, the insured person can renew it every year till the age of 55 years. If an individual does not want to continue it, then he/she may simply not renew the scheme. And, if in future the person again wants to avail the scheme, then they can provide the health certificate and pay the premium.
• Premium:

PMJJBY offers insurance benefits at a very affordable premium rate of ₹ 330 per annum. for individuals of all income groups. The scheme is for all age groups of people. However, the premium amount has been kept the same for all age groups.

• Tax benefits:

The premium amount paid towards the PMJJBY scheme is eligible for tax deductions under section 80C of the Income Tax Act,1961.

• Payment mode:

The premium gets auto-debited from the bank account of the subscribers. There is no other way to pay the premiums. The premium gets auto-debited from the bank account between 25th May- 31st May. In case the subscribers want to discontinue the scheme then they can submit a cancellation form to their respective bank.

Benefits of PMJJBY:

• Death Benefit: PMJJBY gives an insurance coverage of ₹ 2,00,000 in case of the death of the policyholder. The amount is paid to the stated nominee of the policy.
• Maturity Benefit: PMJJBY does not offer any maturity benefits as it is a pure term insurance plan.
• Tax Benefit: PM Jeevan Jyoti Bima Yojana offers a tax deduction on the premiums paid under Section 80C of the Income Tax Act,1961. In case the policyholder does not submit the form 15G/15H, then in this situation any life insurance benefit more than ₹ 1,00,000 will be taxed at 2%.
• Risk Coverage:  The scheme gives risk coverage for 1 year. But,it can be renewed every year till the age of 55 years.

Eligibility Coverage: 

• Individuals of age between 18-50 years of any income group can avail the scheme through their respective banks.
• The scheme can be availed by using only one bank account, in case an individual has multiple bank accounts.
• It is mandatory to link the aadhar card with a bank account to avail the benefits of PMJJBY.
• Individuals who are joining the scheme after 30th November 2015, when the primary enrollment period has ended, then the individuals have to submit a health certificate or health proof in order to prove that they are not having any critical illnesses.