A risk cover against death in the life of the policy buyer is provided through the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), a non-participating, non-linked, annually renewing term insurance program. The Life Insurance Corporation of India (LIC) and private-sector life insurance companies manage this term insurance policy, which is backed by the Central Government of India. Being a pure term insurance plan, the policy only provides a death benefit in the event that the life guaranteed dies while the policy is in force. At policy maturity, there is no benefit or payout provided. Continue reading to learn more about the PMJJBY (Pradhan Mantri Jeevan Jyoti Bima Yojana) program.
Pradhan Mantri Jeevan Jyoti Bima Yojana Eligibility Requirements
- Any person between the ages of 18 and 50 may purchase this policy.
- Up until the life assured reaches the age of 55, the policy will cover him or her.
- The insurance buyer must have a savings account with a partnering bank in order to acquire this policy.
- If they want to buy this policy, policy purchasers must link their Aadhaar to their bank account.
- An individual will require a medical certificate as proof of good health if they are acquiring this coverage after November 30, 2015.
- The Pradhan Mantri Jeevan Jyoti Bima Yojana Death Benefit has the following advantages:
If the policyholder passes away unexpectedly while the policy is still in effect, the insurer will pay the nominee the full amount of the death benefit. Under the PMJJBY plan, a person may get a death benefit of up to Rs. 2 lakh. The maximum sum payable will not exceed Rs. 2 lakh, regardless of the fact that the policyholder obtained the coverage from numerous insurance firms or savings bank accounts. In this instance, the nominee will only get the first application’s death benefit amount.
Advantages of Maturity/Survival Because it is only term insurance, this plan will not accrue any monetary value. As a result, once reaching maturity, there will be no advantage.
Tax Benefit: Under Sections 80C and 10(10D) of the Income Tax Act, policy buyers and nominees are eligible to claim tax advantages for both the premiums they pay and any payouts that the nominee might get. The fact that tax regulations could change at any time makes it prudent to periodically contact a tax professional.
The Pradhan Mantri Jeevan Jyoti Bima Yojana: Key Features
Prospective policy buyers can purchase this policy for a fair price. The 330 rupee premium is due for this policy (exclusive of service tax).
The PMJJBY program has a one-year policy period. However, this policy’s coverage can be renewed every year.
The amount assured under this plan is Rs. 2 lakh.
Policyholders are given a grace period of 30 days to pay their payment.
Insurance renewal is only possible on June 1 of each year, regardless of when the policy buyer originally subscribed to the coverage.
The death that occurs within the first 45 days (the lien period) is not covered for new policy buyers. Furthermore, no claim will be accepted if the death happened during the lien period and was not accidental.
According to their needs, policyholders are free to end the policy coverage at any moment.
The 45-day lien period for this coverage begins on the enrollment date.
This policy does not provide a free-look period.
In accordance with Section 39 of the Insurance Act of 1938, insurance owners may make a nomination when acquiring this coverage.
Banks offering the Pradhan Mantri Jeevan Jyoti Bima Yojana Plan are listed below:
A new group term insurance programme called the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) has been introduced by the Indian government to help out the less fortunate members of society who cannot buy life insurance policies. Because it is term insurance, the plan solely provides protection against mortality. Only 20% of the population was discovered to have insurance plans as of May 2015. The PMJJBY’s goal is to improve the prevalence of insurance in India.
Banks can collaborate with LIC or any other life insurance provider to deliver the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY). The bank’s responsibility will be to receive the premium payment from the principal policyholder by the due date or earlier and to transfer the funds to the insurance provider. The enrolling form, consent cum declaration form, and auto-debit authorization paperwork will all be kept by the bank. The aforementioned documents may at any moment be requested by the insurance company.
Listed below are a few banks that offer the PMJJBY:
Union Bank of India
State Bank of India
Punjab National Bank
Kotak Mahindra Bank Ltd.
ICICI Bank Ltd
HDFC Bank Ltd
Central Bank of India
Bank of Maharashtra