Did you know that nearly 75% of India’s population lacks health coverage? To address this gap, the Indian government launched the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) in 2015, a low-cost life insurance scheme aimed at providing financial security to the masses. With an annual premium of just ₹436, these health insurance plans offer a substantial cover of ₹2 lakhs. In this article, we delve into the details of PMJJBY, exploring its benefits, eligibility criteria, and the application process to help you make an informed decision.
What is Pradhan Mantri Jeevan Jyoti Bima Yojana?
The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a term insurance plan introduced by the Government of India to ensure affordable life insurance coverage for all. Launched as part of the government’s ambitious Jan Suraksha initiative, PMJJBY provides a life cover of ₹2 lakhs for a nominal annual premium of ₹436, renewable every year. It is a pure protection plan, meaning it offers no maturity or surrender benefits but ensures a lump sum payout to the nominee in case of the policyholder’s demise due to any cause.
The scheme is managed by Life Insurance Corporation of India (LIC) and other insurance providers, ensuring widespread accessibility. The simplicity of the plan, coupled with the affordable premium, has made PMJJBY a popular choice among low-income and rural households, empowering them with a basic financial safety net.
Benefits of Pradhan Mantri Jeevan Jyoti Bima Yojana
This health insurance comes with a lot of benefits; some of these are:
1. Affordable premium
One of the standout benefits of PMJJBY is its affordability. For just ₹436 per year, individuals can secure a life cover of ₹2 lakhs. The premium is auto-debited from the subscriber's bank account annually, ensuring a hassle-free renewal process.
2. Substantial coverage
Despite the low premium, the plan provides a substantial coverage amount of ₹2 lakhs, which can offer crucial financial support to the policyholder’s family in times of distress.
3. Death benefit
In the unfortunate event of the policyholder’s demise, the nominee receives the full sum assured of ₹2 lakhs, irrespective of the cause of death. This lump-sum payout can help cover immediate expenses and provide temporary financial relief.
4. Tax benefits
Premiums paid under PMJJBY are eligible for tax deductions under Section 80C of the Income Tax Act, 1961. Additionally, the death benefit paid to the nominee is exempt from taxes under Section 10(10D), making the plan a tax-efficient choice.
5. Ease of enrolment and renewal
Individuals aged between 18 and 50 years with a savings bank account can opt for this plan by submitting a simple consent form. The auto-debit facility ensures that the policy remains active without requiring manual intervention every year.
6. Government-backed security
Since the plan is backed by the Government of India and managed by reputed insurers like LIC, subscribers can trust the reliability and authenticity of the coverage.
Eligibility and documentation of Pradhan Mantri Jeevan Jyoti Bima Yojana
The PMJJBY scheme details a very simple eligibility and documentation process for those who want to apply for the scheme. This is:
1. Eligibility criteria
o Age: Individuals aged 18 to 50 years can enrol in PMJJBY.
o Bank Account: A savings bank account is mandatory for enrolling in the scheme, as the premium is auto-debited annually.
o Policy Tenure: Coverage is available up to 55 years of age, provided the policy is renewed annually.
2. Required documentation
o A valid Aadhaar card linked to the bank account.
o A signed consent form authorising auto-debit of the premium.
o Nominee details to ensure a smooth claim process in case of the policyholder’s demise.
3. Exclusions
PMJJBY does not cover death due to suicide within the first 30 days of policy initiation, called the lien period. Other than this exclusion, all causes of death, including natural, accidental, and medical reasons, are covered.
How to apply for Pradhan Mantri Jeevan Jyoti Bima Yojana
By following a few easy steps, you can apply for insurance coverage under PMJJBY.
1. Through bank branches
Most public and private sector banks offer PMJJBY. You can visit your bank branch and fill out the PMJJBY application form, providing your consent for annual premium deduction.
2. Online application
Several banks offer the option to enrol online through their net banking portals. You can log in, navigate to the insurance section, and opt for PMJJBY with a simple click.
3. Through insurance providers
LIC and other insurers also facilitate enrolment for PMJJBY. You can approach your insurance provider directly or apply through authorised agents.
4. Auto-debit facility
Ensure that your bank account maintains a sufficient balance for the annual auto-debit of the premium amount. If the debit fails due to insufficient funds, your coverage could lapse.
You can check the policy status through your bank’s net banking portal or by visiting the bank branch. Insurers also provide status updates upon request.
Final thoughts
Pradhan Mantri Jeevan Jyoti Bima Yojana is an excellent initiative by the Government of India to promote financial inclusion and ensure basic life insurance coverage for all. Its affordability, simplicity, and comprehensive coverage make it a compelling choice for those looking to secure their family's financial future.
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FAQs
Q1: Can I hold multiple PMJJBY policies across different banks?
A: No, an individual can hold only one PMJJBY policy across all bank accounts. Multiple enrolments will result in the cancellation of policies.
Q2: What happens if I miss the premium payment for a year?
A: If the premium is not debited due to insufficient funds, the policy will lapse. However, you can re-enrol by paying the premium, subject to the 30-day non-accidental risk cover exclusion period.
Q3: Can NRIs enrol in PMJJBY?
A: Yes, NRIs with Indian savings bank accounts can subscribe to PMJJBY. However, the claim amount will be paid in Indian currency.
Q4: Is a medical test required to enrol in PMJJBY?
A: No, PMJJBY does not require any medical tests or health check-ups for enrolment, making it accessible to all eligible individuals.
Q5: What if the policyholder dies within 30 days of enrolment?
A: In case of natural death, the claim will not be entertained if it occurs within the first 30 days. However, death due to accidents is covered from day one.
