Benefits of Pradhan Mantri Jeevan Jyoti Bima Yojana

One of the concerns that every individual has is their family's financial security. Therefore, making a good financial plan is essential to ensure your family’s financial independence.An important factor that every person should consider when making a financial plan is life insurance. Life insurance is a scheme that provides a sum assured to the nominees of the policyholder in case he/she passes away during the tenure of the plan.But factors like poor financial literacy and low income have caused many to stay away from life insurance. Therefore, to deal with such problems, the Government of India launched Pradhan Mantri Jeevan Jyoti Bima Yojana.

Pradhan Mantri Jeevan Jyoti Bima Yojana is a low-cost and easy-to-understand life insurance scheme. The Government of India introduced this scheme with the aim of making insurance purchase easy for Indians.PMJJBY was launched in Budget 2015. It provides a life cover of Rs. 2 Lakhs to the policyholders. It’s essential to renew this policy every year in order to stay insured.

Life Cover

This is one of the most crucial Pradhan Mantri Jeevan Jyoti Bima Yojana benefits . In case the policyholder dies during the term of the plan, his/her dependents can receive the death benefit of Rs. 2 Lakhs.

Financial Security of the Family

In the event of the policyholder’s death, his/her nominees will receive a sum assured that can be used to repay debt and meet regular expenses. Therefore, with the help of this scheme, policyholders can ensure their family's financial security.

Tax Benefits

The premium payment made towards this scheme is eligible for a tax deduction under Section 80C. Therefore, by subscribing to this plan, policyholders can also save on taxes.

Here are some features of PMJJBY-

• PMJJBY is a term insurance plan . Hence, policyholders will not receive any maturity benefit.
• Individuals between the age of 18 to 50 years are eligible for this scheme.
• In order to subscribe to this scheme, individuals need to have an active savings account. The premiums will be auto-deducted from the savings account of the policyholder.
• PMJJBY offers a life cover of Rs. 2 Lakhs.
• Policyholders can easily exit from the scheme. They can also re-join the scheme at any time.
• The validity period of this scheme is one year and can be renewed.
• This scheme is beneficial for underprivileged families in India.

Follow the below steps to apply online-

• Download the PMJJBY form (https://www.jansuraksha.gov.in/Forms-PMJJBY.aspx)
• Select the language of the form.
• Enter the details on the form.
• Submit it to the bank where you have a savings account.
• Submit the necessary documents.
• Once the documents are verified, you’ll be registered under the scheme.

Here are some important things that people should keep in mind about PMJJBY-

• The coverage tenure of PMJJBY starts on 1stJune every year. Its validity ends on 31stMay of the next year.
• In case an individual applies for multiple covers, the cover amount will be restricted to Rs. 2 Lakhs. The other policies will be terminated. Furthermore, the premiums paid for the other policies will be forfeited.
• If there are insufficient funds in the account or the account is closed, then the policy will be terminated.
• An individual can re-join the policy by making the full premium payment. He/she must also submit proof of good health.
• If any information provided by the applicant is false, then the membership in the scheme will be cancelled. The premiums paid will be forfeited.

With Pradhan Mantri Jeevan Jyoti Bima Yojana, policyholders can take a crucial step toward providing their dependents with financial safety.

• One of the essential responsibilities of every breadwinner is to provide their family with financial support. With PMJJBY, policyholders can safeguard their dependents financially.
• In case a person with debts passes away untimely, his/her family will be under a huge financial burden. However, the death benefit received from life insurance can be used to repay the debt and lower the financial stress.
• The nominees of the policy can receive a death benefit of Rs. 2 Lakhs if the policyholder passes away during the tenure of the policy.
• Policyholders must ensure they pay the premiums regularly in order to avail the benefits of PMJJBY. Failure to make the payment might result in the termination of the policy.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.