Why should you invest in PMJJBY?

Getting insurance is essential in life. It offers a sense of financial security, especially when it comes to health or life. The moment you invest in life insurance, one is sure of their financial security for their loved ones in case of the death of the holder. Not everyone can afford to pay high insurance premiums with regular policies available. Precisely why Indian Prime Minister Narendra Modi introduced the Pradhan Mantri Jeevan Jyoti Bima Yojana in 2015.

We let you know why you should invest in one –

The premium payable is low

One of the benefits of investing in PMJJBY is you need not spend massively on buying the policy. You must pay a small amount of INR 330 annually. The insurance premium amount does not increase with every passing year and remains the same, irrespective of whether you can buy the policy at the age of 18 or 50 years. A small administrative charge of INR 41 gets levied on buying the plan. However, the amount gets included in the premium amount you pay yearly.

Get insurance up to INR 2 lakh

Although you need to pay only INR 330 for the PMJJBY policy, you can get insurance for INR 2 lakh. It is the maximum sum assured amount which the policyholder receives in the event of the death of the holder. This amount proves incredibly helpful, especially for people belonging to economically weaker sections and low-income groups.

Secures the policyholder’s financial well-being

Those having only one working member must consider investing in the scheme. The breadwinner of the family must buy this policy as it gives them a sense of financial relief over the death of the holder. The insurance amount can help you get back on the feet and pay for the associated costs, which is inclusive of death rituals and sustenance until another member finds appropriate employment.

Avail tax benefits

Considering insurance policies are considered an investment, policyholders can get tax deductions under PMJJBY, even if the premium amount is around INR 330. You can get up to INR 1.5 lakh over the different investments made within the financial year under Section 80C, Income Tax Act, 1961. Make sure that your family gets the entire benefit which is possible only if you submit Form 15G and 15H whenever you renew the scheme.

Enter and exit at your will

Investors can enter or exit the Pradhan Mantri Jeevan Jyoti Bima Yojana anytime they like, without incurring penalties or charges. For example, if in a year, you cannot renew the policy, you can simply exit the same. If you come with the premium amount a few months after the policy expires, you can automatically replace them, without paying any late fees. While the existing plan gets suspended, you can reapply for a new one.