Table of contents
Introduction
Unexpected life events can happen at any time that might cost an individual’s life and leave the ones dependent on them struggling. This is where a life cover becomes helpful. It guarantees the security of the dependents by granting them a sum in case of an unforeseeable death.
One such life insurance policy offered by the Government of India is Pradhan Mantri Jeevan Jyoti Bima Yojana. In this article, we will introduce you to this policy along with Pradhan Mantri Jeevan Jyoti Bima Yojana benefits, eligibility criteria, and features.
What is Pradhan Mantri Jeevan Jyoti Bima Yojana?
The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a life insurance scheme with a validity of one year that provides financial coverage against death. This policy can be renewed from year to year to avail death coverage for any reason.
This is only a term insurance policy that covers mortality and should not be looked at as an investment tool. This term insurance policy acts as a safety net in case of mortality and provides financial security to the family and dependents of the deceased.
The plan is offered through life insurance companies and can be availed by all individuals who have a savings bank account. The Pradhan Mantri Jeevan Jyoti Bima Yojana age limit is 18 to 50 years providing life coverage till the age of 55. An insurance cover of the amount of INR 2 lakhs is coverable at a premium of INR 330/person.
Features of Pradhan Mantri Jeevan Jyoti Bima Yojana
The central features of Pradhan Mantri Jeevan Jyoti Bima Yojana are:
Enrolment and premium
Individuals can avail of the scheme through any bank or post office they have an account with. The date of enrollment is either June 1 or the date of enrollment of the insured member, whichever is later. The insurance coverage is provided till May 31 of the next year.
The Pradhan Mantri Jeevan Jyoti Bima Yojana premium amount is auto-deducted from the account holder’s account depending on the option chosen while enrolling.
Exclusions
The life insurance cover is not available for the first 30 days after the enrollment (except in case of accidents) or for death that occurs during the enrollment process (except in case of accidents) or the lien period.
Tax and maturity
The individuals availing of life insurance policy can avail of tax-deductible benefits under section 80C of the Income Tax Act for the premium paid. Additionally, the life insurance plan does not come with any surrender or maturity benefits.
Eligibility criteria for Pradhan Mantri Jeevan Jyoti Bima Yojana
Let us now look at the eligibility criteria for the Pradhan Mantri Jeevan Jyoti Bima Yojana:
- Individuals must be within the age bracket 18-50 and have an active savings account
- Insurance buyers can enroll in this scheme only with one savings account even when they have more
- It is mandatory to link the Aadhaar card to the bank account
- Individuals who enrol for the Life Ensure after the initial enrolment period (August 31 – November 30) must provide a self-attested medical certificate stating that they do not suffer from any critical illness
Claim process for Pradhan Mantri Jeevan Jyoti Bima Yojana
The claim process for life insurance coverage comprises the following steps:
- The nominee must approach the bank through which the deceased person had opted for life insurance coverage. It is important to have the death certificate of the concerned person to show as proof and the Pradhan Mantri Jeevan Jyoti Bima Yojana form.
- After this, the bank will provide the nominee with a claim form and discharge receipt. The nominee must submit the filled claim form, discharge receipt, death certificate and a cancelled cheque of the nominee’s account/bank details to the bank.
- The bank then verifies the insurance policy by assessing whether the insurance premium was paid and the policy is active. The bank must then verify the nominee details, fill in the remaining columns of the claim form and submit it to the insurance company. This process is completed in a maximum time of 30 days by the bank.
- Now the insurance companies verify all details and release the payment to the nominee’s bank account together with sending a copy to the bank. The maximum time with the insurance company after receiving the claim from the bank is 30 days.
Conclusion
Pradhan Mantri Jeevan Jyoti Bima Yojana is a safety net for the family and dependents that secures them against unforeseen events of death. With this plan, financial security is guaranteed at an affordable premium for all.
However, it is crucial to set up auto-payments with your bank to ensure that you can avail the benefit of life insurance year after year. Understanding the scheme and being aware can not only assist you in enhancing financial security but also help save taxes. To learn financial concepts, read blogs on StockGro!
FAQs
The Pradhan Mantri Jeevan Jyoti Bima Yojana amount is not refundable. However, in case multiple bank accounts are linked to the life insurance policy then the amount will be reimbursed and the policy canceled.
The Pradhan Mantri Jeevan Jyoti Bima Yojana was launched in the year 2015 to protect individuals from accidental death with an annual premium amount.
Yes, insurance buyers can discontinue the policy by intimating the insurance company. However, they must do this before the beginning of the new year so the amount does not get deducted automatically.
The premium cost is INR 330/person per annum which provides a coverage of INR 2 lakhs. This is a fixed premium which must be given every year to renew the policy.
To know the status of your policy, go to the respective bank’s website and log in to Netbanking. Navigate to the Pradhan Mantri Jeevan Jyoti Bima Yojana section and enter your bank account and policy details. Click on the submit option to view the status of your policy.