Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) – Definition, Eligibility and Benefits of PMJJBY Scheme

Overview on PMJJBY

Pradhan Mantri Jeevan Jyoti Bima Yojana was launched under the Government of India on 9th May 2015 in Kolkata by Indian Prime Minister, Narender Modi. Finance Minister Arun Jaitley first introduced the PMJJBY as a term life insurance scheme in the 2015 budget sheet. Life Insurance Corporation of India is responsible for the implementation of the Pradhan Mantri Jeevan Jyoti Bima Yojana.Â

Highlights of The PMJJBY Scheme are Listed Below:

Pradhan Mantri Bima Yojana is applicable to the people in the age-group of 18 to 50 years having a bank account with consent to join/enable auto-debit. Here Aadhar card details act as a primary KYC for Bank account. The individual enrolled in the scheme will be given a life cover of Rs. 2 Lakhs which will be for a period of one year stretch starting from 1st June till 31st May of Next Year. The scheme is subjected to renew every year. In case of the death of the insured, a risk coverage of Rs. 2 Lakh is provided.  The premium amount of the scheme is Rs. 330 per annum which will be deducted automatically from the bank account of the individual as per the mode of payment selected. The amount is deducted before 31st May of every annum. The scheme is only offered by the Life Insurance Corporation if any other insurance company wants to offer the scheme, has to take proper approval from the LIC company. The company has to do a tie-up with the LIC.

Eligibility for  PMJJBY Policy

The main purpose of launching Pradhan Mantri Bima Yojana was to provide life cover insurance to the poor & low-income section of the society. Anyone in the age group of 18-50 years can avail the benefits of this scheme. The people enrolling for the scheme must have a bank account to be eligible for the Pradhan Mantri Jeevan Bima Yojana. Anyone joining the scheme before the age of 50 years will get a life cover security up to the age of 55 years. Important to note here is that the premiums must be paid on time every year. Along with this, it is mandatory for the person to link the Adhaar card to their bank account to avail of the scheme.

Benefits of The PMJJBY Scheme

For the benefit of the poor and low-income society, PM Narender Modi launched three special schemes namely Pradhan Mantri Suraksha Bima Yojana, Pradhan Mantri Jeevan Bima Yojana & the Atal pension Yojana. The Pradhan Mantri Jeevan Jyoti Yojana was launched by the Indian Government for the benefit of the economically weaker section of the society. A maximum amount of Rs. 2 Lakh has been assured as the life cover benefit of this scheme.

PM Jeevan Jyoti Yojana benefits are listed below. Let’s discuss them in detail:

• In case of death of the insured person due to any reason, the beneficiary is provided with a death benefit. This also includes the death coverage of Rs. 2 Lakh.
• The scheme is applicable till the age of 55, therefor the scheme doesn’t offer any maturity time or period. Â
• The scheme provides risk coverage for 1 year which can be auto-renewed yearly. The insurance holder can change the duration of the scheme through the option of auto-debit with the linked bank account.
• The premium paid towards the scheme is also liable for tax deduction under section 80C.
• Starting from 1 June to 31st May, the scheme provides a life cover of Rs. 2 Lakhs for 1 year which is renewable every year.
• Rs. 330 is auto-deducted from the account before 31st May of every annual year for renewal of the scheme.Â