The Pradhan Mantri Jeevan Jyoti Bima Yojana was started by Mr. Arun Jaitley in the annual financial budget of 2015 to increase the number of health insured citizens in the country.
PMJJBY is a life insurance scheme valid for one year and is renewable from year to year, offering coverage for death.
This term insurance policy is backed by the Central Government of India, and is administered by the Life Insurance Corporation of India (LIC) and also private-sector life insurance companies.
FEATURES OF PMJJBY
Following are the key features of this scheme :
- A life cover of Rs. 2 lakhs is available under the PMJJBY scheme at a premium of Rs.330 per annum per member, and is renewable every year.
- This scheme offers a term planwherein the insurance company will pay the insurance amount to the member’s family only upon the death of the insured member.
- The policy will automatically maturewhen the insured member reaches 55 years of age.
- The lien period for this policy is 45 days, starting from the enrolment date.
ELIGIBILITY FOR PMJJBY
- The member applying for the scheme must be between 18 and 50 years of age
- One can join this scheme with only one saving bank account even if they have multiple bank accounts
- To avail of the benefits offered by this policy, it is mandatory to link your Aadhar card to the eligible/participatory bank account.
- If an individual is purchasing this policy after 30 November 2015, he/she will need to provide a medical certificate as proof of good health.
HOW TO APPLY FOR THIS SCHEME ?
The enrolment process for this scheme has been made simple and easy.
To avail the benefits of this scheme, the eligible candidates must either fill a form at the bank branch at any time of the year or apply for the scheme online through netbanking service.
However, before applying for the scheme, it is mandatory for the members to get their KYC done by submitting their Aadhaar along with the application form.
It must be noted that the premium amount will be deducted automatically from the insured member’s bank account on an annual basis.
BENEFITS OF PMJJBY
Following are the main benefits of this scheme –
- It provides a death coverage of Rs 2,00,000 to the beneficiary of the policy in the case of the sudden demise of the insured person.
- The premium paid towards the policy is eligible for tax benefits as under section 80C of the Income Tax Act.
Thus, the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a life insurance scheme which allows coverage against premature death & pays a fixed benefit, called the sum assured, to the family of the insured in case the insured dies during the policy tenure.