Pradhan Mantri Jeevan Jyoti Bima Yojana: Eligibility, features, and benefits explained!

Since Narendra Modi became the Prime Minister of India in 2014, the Indian Government have launched several social security schemes for the betterment of the lower group and lower-middle-class group. One such scheme is the Pradhan Mantri Jeevan Jyoti Bima Yojana. The policy was announced for the growth of the poor and low-income section of society. The policy applies to people between the age group 18 to 50 years.

PMJJBY is a renewal insurance term plan which offers a yearly life insurance coverage up to INR 2 lakh in the event of the death of the policyholder. The premium rates are affordable as well. The following pointers, such as eligibility, features, and benefits, explain the scheme in detail.

Eligibility:

• If you are between the age of 18 years to 50 years with a savings account, can join the scheme through participating banks.
• People hold multiple bank accounts. But you can subscribe for the policy only through one account.
• If you want to avail of the policy, you must link your Aadhaar to the participatory bank account.
• If you join the scheme after the primary enrolment period ranging from August 31, 2015, to November 30, 2015, you must submit a self-attested medical certificate as proof as a proof that you are not suffering from any critical illness as mentioned in the policy declaration form.
• The maximum maturity age for PMJJBY policy is 55 years.
• The premium amount is INR 330 inclusive of the administrative charges.

Features:

Some of the salient characteristics of the plan are –

• You receive coverage for a year under PMJJBY. You have the provision of the renewing the plan every year.
• The consumers have the liberty to walk out of the plan whenever and re-join in the future anytime.
• You receive a maximum assured sum of INR 2 lakh under the scheme.
• In comparison to other insurance plans, the premium offered by Pradhan Mantri Jeevan Jyoti Bima Yojana is lower. Moreover, the premium rate is the same for all the age groups.
• The claim settlement process is hassle-free and convenient.
• Under specific scenarios, the death benefit provided by the policy gets terminated:
• In case the policyholder crosses 55 years of age
• If the policyholder is insured through different bank accounts
• If the policyholder does not have sufficient balance in the savings account to keep the insurance going.

If you do not purchase the policy in the initial years, you can join the scheme in the subsequent years by paying the premium annually and submitting a self-attested health certificate.

Benefits:

The PMJJBY policy have unique advantages as well –

• Death benefits: In the event of the death of the PMJJBY policyholder’s death, the scheme offers coverage of INR 2 lakh to the beneficiary of the plan.
• Maturity benefits: The policy does not offer any maturity or surrender benefits since it is a pure term insurance scheme.
• Tax benefits: The premium paid towards PMJJBY, is applicable for tax deductions under Section 80C of the Income Tax Act. If you fail to provide the Form 15G or 15H, then any life insurance exceeding INR 1 lakh is taxable by 2 per cent.
• Risk coverage: The policy provides coverage of a year. Considering it is a renewable plan, you can renew it yearly. You could also opt for longer duration by auto-debit option through your savings account.