PMJJBY Scheme Details & Benefits Explained - ABCD

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 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 l ife insurance policy for a total coverage of Rs. 2,00,000/-.

• Only people between the ages of 18 and 50 with a Savings bank account can apply for the Pradhan Mantri Jeevan Jyoti Bima Yojana.
• People with multiple accounts across various banks may also take part in the policy, but they can only enrol for the policy once with any one of their Savings accounts.
• 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.

The policy will be in issue when the first premium gets debited. The insurance cover will be offered up to May 31st of the coming year. The premium will be auto-debited. However, the premium cost might change as per the government. If a buyer wishes to purchase the policy after June 1st, then they will have to pay the full year’s/pro-rata premium as per the month of joining.

PMJJBY 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 up to the age of 55 years. In case the applicant chooses to opt-out of the plan, he or she can join the scheme at any later time by paying the premium and providing a health certificate.

PMJJBY Coverage

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

PMJJBY Premiums

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

PMJJBY Tax Benefits

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.

PMJJBY Risk Coverage

The death benefit of the policyholder due to any reason will be paid to the nominee. The sum assured is Rs. 2 Lakh.

PMJJBY Payment Mode

The bank will auto-debit the premium from the Savings account. It is the only way the policyholder can make the payment. The renewal period of the scheme is between May 25th and May 31st, and the premium renewal will also be auto-debited. However, the policyholder can stop the payment by submitting a cancellation request.

PMJJBY 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 people in low-income groups and families that lie below the poverty line.

• A policyholder who has purchased the insurance after June 1st, 2016, the coverage will be offered only after completing 45 days of the enrolment. However, accidental death is exempted from the period.
• People with more than one Savings account can only enrol for one PMJJBY policy. The premiums will be refunded to policyholder’s account if such a case is discovered. Also, no coverage will be offered for such plans.
• The premium must be paid as per the requirement.
• The new structure of premium is-
• a premium of Rs. 330 for the months of June, July, and August
• premium of Rs. 258 for the months of September, October, and November
• premium of Rs. 172 for the months of December, January, and February
• premium of Rs. 86 for the months of March, April, and May
• If a mobile number is not registered with the Savings account of the policy buyer, then the policy will not be issued. The bank is not required to offer any intimation about it.
• The consent for auto-debit from the Savings account will be considered only when the policyholder confirms it with their registered mobile number.
• The personal details must be shared with the bank certifying coverage as per the policy.
• If the details submitted by the buyer are untrue, then the enrolment will be cancelled. Also, the premium will be forfeited.
• If joint account holders want to enrol for PMJJBY scheme, then they will have to submit a separate enrolment request form.
• The premium of Rs. 330 (with GST) will be renewed, and auto-debited from the Savings account between May 25th and May 31st of every year. If a policyholder wants to cancel the auto-renewal, then they must submit a request before the end of the year. The premium will be renewed until the policyholder is in the eligible age as per the scheme.

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.