Pradhan Mantri Jeevan Jyoti Bima Yojana

Pradhan Mantri Jeevan Jyoti Bima Yojana (term insurance plan) is designed by the central government for the growth of the poor and low society people. This scheme is available to people in the age group of 18 to 70 years with a bank account who give their consent to enable their auto-debit on or before 31st May for coverage period and Rs. 1 Lakh for partial disability.

What is Pradhan Mantri Jeevan Jyoti Bima Yojana? 

Pradhan Mantri Jeevan Jyoti Bima Yojana is a term insurance plan, which means the insurance company pays the amount to the insured’s nominee only after the death of the policyholder.

  • There is no need for any medical examination to buy insurance in Pradhan Mantri Jeevan Jyoti Bima Yojana.
  • The risk coverage under this scheme is Rs. 2 Lakh for accidental death and full disability and Rs. 1 Lakh for partial disability.
  • Under Pradhan Mantri Jeevan Jyoti Bima Yojana, the minimum age for taking a term insurance policy is 18 years and maximum age is 50. The maturity age of this policy is 55 years.
  • The annual premium for Prime Minister Jeevan Jyoti Bima Yojana is Rs. 330. This amount is taken from your bank account through ECS. Bank charge administrative fees for the amount of scheme. Apart from this, GST is also applicable to this amount.
  • If you compare this term insurance plan to others the plan offers low premium rates per year.
  • The policyholder is insured through different bank accounts.

The Eligibility Criteria of Pradhan Mantri Jeevan Jyoti Bima Yojana

  • Any citizen of India aged between 18- 50 years having a saving account can opt for this policy.
  • No matter if you have multiple savings accounts, you can subscribe to this scheme by only one saving account.
  • In order to avail of the benefits offered by policy, it is mandatory to link your aadhar card to the participatory bank account.
  • Insurance buyers joining the scheme after the primary enrollment period ranging from 31st August 2015- 30th November 2015 will have to submit a self-attested medical certificate as proof that he/she is not suffering from a critical illness.

Facts and Figures of Pradhan Mantri Jeevan Jyoti Bima Yojana

  • The scheme is one-year cover term life insurance scheme, renewable from one year to year, offering life insurance cover for death due to any cause.
  • Rs. 2 Lakh is payable on a policyholder’s death to his family.
  • The premium payable is Rs. 330.
  • The scheme would be managed through LIC and other life insurance companies willing to offer a product with compulsory approvals in similar terms, in collaboration with contributing banks.
  • Initially on the launch for the cover period from 1st June 2015 to 31st May 2016 subscribers were expected to enroll and give their auto-debit option by 31st May 2015, which was extended up to 31st May 2016.
  • For subscribers enrolling for the first time on or after 01st June 2016, insurance benefits shall not be available for death occurring during the first 45 days from the day of enrollment of this scheme.
  • Individuals who exist this scheme at any point can rejoin the scheme in future years can also join accordingly. However, for such subscribers, insurance benefit shall not be available for death ( due to any cause other than accident), occurring during the first 45 days from the date of enrollment into the scheme.
  • The scheme will be administered by LIC or any other Life Insurance company which is willing to offer such a product in partnership with a bank /banks.
  • In the case of joint account, all holders of the same account can join the scheme provided they satisfy the eligibility criteria and pay the premium at the rate of Rs. 330.
  • All bank account holders other than institutional account holders are eligible for subscribing to Pradhan Mantri Jeevan Jyoti Bima Yojana.

Benefits of Pradhan Mantri Jeevan Jyoti Bima Yojana

The Pradhan Mantri Jeevan Jyoti Yojana has met with huge success ever since it launched by Indian Prime Minister Narendra Modi. Learn some benefits of this scheme that we have mentioned below-

Accidental Insurance Cover:

The Pradhan Mantri Jeevan Jyoti Yojana offers you accidental insurance coverage of Rs.1 Lakh and could be extremely helpful especially for the deprived classes.

Low Premium:

As compared to other life insurance products, the premium of this scheme is very low and that is Rs. 330. Indian citizens whose wages are low and want to offer financial security coverage to their families can opt for this scheme.

Death Benefit:

This scheme gives a very important death benefits coverage of Rs. 2 Lakhs on the death of the policyholder due to any reasons.

Maturity Benefits:

This pure life insurance scheme covering only death benefits and hence there are no maturity benefits.

Risk Coverage:

Pradhan Mantri Jeevan Jyoti Bima Yojana plans cover all the risks to life. The death benefit amount is given to the nominee of the policyholder in the event of the death of an insured due to any reasons after the 45 days of the cooling period clause.

Tax Benefits:

This scheme comes under section 80 C of the income tax.

What is the Payment Mode of this Scheme?

The premium will be directly auto-debited from the savings account that you have linked to the policy. This is the only payment mode is available currently. For renewal of this policy, it will be auto-debited between May 25 and May 31, unless the customer has given a cancellation request to the bank for the policy.

Termination of Assurance:

The assurance on the life of the member shall terminate on any of the following events and no benefits will be payable under-

  • On attaining age 55 years, the account holder can terminate the policy.
  • Closing of account with the Bank or insufficiency of balance to save the insurance in force.
  • If the insurance cover is ceased due to any technical reasons such as insufficient balance on the due date, the same can be reinstated on receipt of full annual premium and a satisfactory statement of good health.
  • Participating banks shall remit the premium to the insurance companies in case of regular enrollment on before the 30th of June every year.

Appropriation of Premium: 

  • Insurance premium to LIC/ insurance company: 289/- per annum per member.
  • Reimbursement of expenses to BC/ Micro/ Corporate/ Agent: Rs. 30 per annum per member.
  • Reimbursement of administrative costs to the contributing bank: Rs. 11/- per annum per member

Conclusion:

Pradhan Mantri Jeevan Jyoti Yojana is one of the renowned and authentic life insurance schemes which is backed by the Central Government for the deprived citizens of India. The gold stick of this scheme is premium which is only Rs. 330. There is no risk of losing money because it is associated with LIC. So, if you are looking for a low-premium based insurance policy, then it is advisable to opt for Pradhan Mantri Jeevan Jyoti Yojana.

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About FinanceGAB

Ajeet Sharma is a financial blogger and I am blogging since 2017. Financegab is a personal blog dedicated to personal finance. The main aim of this blog to help people to make well-informed financial decisions.
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