Bal Jeevan Bima Yojana is a rural post-life insurance plan launched by the Indian Postal Service. It is a unique insurance plan aimed at providing life insurance coverage to children in rural areas. The plan provides financial security to the families of the children in case of the child’s untimely death or disability. In this article, we will discuss Bal Jeevan Bima Yojana in detail.
Overview of Bal Jeevan Bima Yojana:
Bal Jeevan Bima Yojana is a government-backed scheme aimed at providing life insurance coverage to children in rural areas. The plan is available to children aged between 5 and 12 years. The scheme is implemented by the Department of Posts, Government of India, in collaboration with the Life Insurance Corporation of India (LIC)
The plan provides a sum assured of Rs. 10,000 in case of the child’s death or permanent disability due to an accident. The premium for the plan is very affordable, with an annual premium of Rs. 330. The premium can be paid in a single lump sum or quarterly installments of Rs. 92. The policy term is five years, and the plan provides a grace period of 30 days for premium payment.
Benefits of Bal Jeevan Bima
With the Bal Jeevan Bima offered by rural postal term life insurance programs, the following advantages are payable.
Death Benefit: If the parent policyholder passes away during the policy term, the insurer will not be responsible for paying any future premiums, and the child’s life insurance will not be affected. The sum assured on death is paid to the nominees along with any collected bonuses if the life assured (the child) passes away within the policy period.
Maturity Benefit: If the kid insured by this policy survives the policy term, the policyholder will receive the sum assured when the policy reaches maturity. The amount of the maturity benefit includes the accrued bonus as well.
paid-up insurance: Bal Jeevan Bima can be converted into paid-up insurance by making recurring due premium payments in full for at least five years.
Bonus: According to the most recent data, the RPLI Bal Jeevan Bima bonus rate is 48 rupees for every 1,000 rupees in total assured. Along with the death or maturity benefit, a lump sum payment of this amount is also due each year.
Features and Benefits of Bal Jeevan Bima Yojana:
The Bal Jeevan Bima Yojana scheme comes with several features and benefits, which are discussed below:
- Life Insurance Coverage: The plan provides a sum assured of Rs. 10,000 in case of the child’s death or permanent disability due to an accident. This provides financial security to the family of the child in case of any unfortunate event.
- Affordable Premium: The premium for the Bal Jeevan Bima Yojana plan is very affordable, with an annual premium of Rs. 330. This makes the plan accessible to families in rural areas.
- Simple Enrollment Process: The enrollment process for the plan is straightforward. The application form for the plan is available at any post office in India. The form needs to be filled out and submitted along with the premium amount.
- No Medical Examination Required: The plan does not require any medical examination for enrollment. This makes the plan accessible to all children in rural areas.
- Nomination Facility: The plan provides the facility of nomination, where the policyholder can nominate a person to receive the sum assured in case of the child’s death.
Tax Benefits: The premium paid towards the Bal Jeevan Bima Yojana plan is eligible for tax deduction under Section 80C of the Income Tax Act, 1961.
Automatic Termination: The policy terminates automatically after the policy term of five years. The Chennai Super Kings scored a staggering 246 runs in their allotted 20 overs, losing only 5 wickets in the process.
Eligibility Criteria for Bal Jeevan Bima Yojana:
To enroll in the Bal Jeevan Bima Yojana scheme, the following eligibility criteria must be met:
- The child should be aged between 5 and 12 years.
- The child should not have any disability at the time of enrollment.
- The child should not have any life insurance policy in his/her name.
- The policy can only be purchased by the child’s parent or legal guardian.
- The policy can only be purchased for a single child.
In conclusion, the Bal Jeevan Bima Yojana is a government-sponsored life insurance program that attempts to give children in rural communities financial security. The Life Insurance Corporation of India (LIC) and the Indian Postal Service work together to implement the program. The plan’s premium is quite reasonable, and it offers an amount assured of Rs. 10,000 in the event that the child dies or has a permanent impairment as a result of an accident.
The plan also offers a number of advantages, including an easy enrollment process, no need for a medical test, a nomination facility, tax advantages, and automatic termination during the policy’s five-year term. The program is a fantastic effort by the government to give children in rural areas financial security and close the insurance coverage gap between urban and rural areas of India. Bal Jeevan Bima Yojana is an excellent program that offers children in rural India much-needed life insurance coverage.