All you need you about central government’s life insurance scheme

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Pradhan Mantri Jeevan Jyoti Bima Yojana is an innovative life insurance scheme of the Central Government of India which intends to benefit the poor and low income section of the society.

Available to people between 18 and 50 years, the PMJJBY is a renewal kind of annual insurance plan that provides a life insurance coverage of Rs 2 lakhs in the event of the death of the subscriber due to any reason. The annual premium to enroll for this scheme is Rs 330 per annum.

Important highlights of Pradhan Mantri Jeevan Jyoti Bima Yojana

Life coverage for 1 year.

The policy is renewable year on year by the insured.

The insured can get out of the scheme and join it back again at any time.

The policy provides a maximum of Rs 2 lakh risk coverage.

The annual premium is Rs 330 only and the premium rate is equal for people of all ages between 18 and 50 years.

The claim process is very simple and subscriber friendly.

The death benefit will be terminated in the following cases

If it is known that the insured person is above 55 years

If the policy holder has subscribed for insurance through different bank accounts

If the individual does not have enough bank balance to keep the insurance in force

Benefits Provided by Pradhan Mantri Jeevan Jyoti Bima Yojana

In case the insured happens to die during the period of subscription, the plan will give a death coverage of Rs 2,00,000 to the registered beneficiary of the policy

Since this is purely a term insurance plan, the scheme does not offer any maturity or surrender benefit

The premiums paid for the coverage is tax deduction eligible under section 80C of the Income Tax Act. If the subscriber has not submitted form 15 G/15 H, the life insurance proceeds going beyond Rs 1,00,000 will be taxable by 2%.

The period of risk coverage under this scheme is one year. This policy can be renewed annually. I the auto debit option is enabled in the savings account of the person, a longer duration of coverage can be opted for.

Eligibility Criteria for Pradhan Mantri Jeevan Jyoti Bima Yojana

Any person between the age of 18 and 50 years can join this scheme through participating banks. The individual must first open a bank account with a bank of their choice.

If the individual has multiple bank accounts, they can subscribe to this scheme only through a single savings bank account.

To be able to benefit from the plan, linking aadhaar number with the bank account is mandatory.

Those subscribers to this insurance plan joining after the primary enrolment plan between 31 August 2015 and 30th November 2015 will have to submit a self-attested medical certificate to prove that they are not suffering any critical illnesses that are listed out in the policy declaration form.

Summing up


This is a very simple scheme to which an individual can subscribe to by just linking the aadhaar card with the participating bank account. The subscribers can enroll themselves for this program at any time by making a full annual premium payment and submitting a health certificate.
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