In a bid to safeguard the finances of poor income families and the population lying below the poverty line, the government has launched a term life insurance plan called as the Pradhan Mantri Jeevan Jyoti Bima Yojana. A term life insurance policy is one where life coverage is provided for a specified term, which is one year, in case of PMJJBY scheme. People between the ages of 18 and 50 can apply for the life insurance policy for a total coverage of Rs. 2,00,000/-.

Eligibility Criteria

  • Only persons between the ages of 18 and 50 with a savings bank account can apply for the Pradhan Mantri Jeevan Jyoti Yojana.
  • People with multiple accounts across various banks may also take part in the policy, but only in relation to any one account.
  • The maturity age of the Pradhan Mantri Jeevan Jyoti Yojana is 55 years, which means that the insurance policy will be terminated once the insured person reaches the age of 55 years.
  • Aadhar Card is a required document to apply for this policy.

Salient Features of the Pradhan Mantri Jeevan Jyoti Yojana

Tenure

The tenure provided for the term life insurance policy is one year from the date of signing. Since the PMJJBY scheme is a term life insurance, the insured person can renew the policy for as many years as they want upto the age of 55 years. In case the applicant chooses to opt out of the policy, he or she can join the policy at any later time by paying the premium and providing a health certificate.

Coverage

The total death benefit provided is Rs. 2,00,000/-. In case of death of insured, the nominee can claim this amount, which would be tax-free. The claim process is also simple and hassle-free. 

Premiums

The Pradhan Mantri Jeevan Jyoti Bima Yojana offers a one year term life insurance for an affordable premium of Rs 330 per annum. This is ideal for low income groups and it shall remain same for people of all age groups between 18 and 50 years.

Tax Benefit

As with all life insurance policies, the premium paid for the PMJJBY policy will be tax deductible under section 80C of the Income Tax Act.

Termination factors

The PMJJBY scheme may be terminated if:
  • The insured person crosses the age of 55 years
  • If the savings account has insufficient balance to keep the policy

Thus, the Pradhan Mantri Jeevan Jyoti Yojana is an affordable term life insurance plan that can greatly benefit persons within low income groups and families that lie below the poverty line

Learn more about different Online Term Insurance Plans here.

DISCLAIMER

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.



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