Pradhan Mantri Jeevan Jyoti Bima Yojana: Features and Benefits

Posted on: Jul 15, 2024 | 3 mins | Written by: HDFC ERGO Team

Pradhan Mantri Jeevan Jyoti Bima Yojana: Features and Benefits

Life can be very uncertain. Imagine a person on a rainy day who decides to go and try his favourite street food. But on the way, his bike meets with an accident, and the rider dies. From making the most of life to suddenly facing death, time can change drastically for a person. After a person’s demise, a massive emotional and financial burden falls on the family. That’s why a life insurance policy becomes a must. But what if you can’t afford its premium? Well, policies like Pradhan Mantri Jeevan Jyoti Bima Yojana can save the day. Let’s learn more about its benefits.

What is Pradhan Mantri Jeevan Jyoti Bima Yojana?

Well, you may have heard about this government scheme, but you may not know about its benefits. This scheme is like a safety net for your family. This life insurance policy provides your nominees INR 2 lakh in case of your death. This scheme ensures your family can use the money to endure tough times. You will have to get the policy renewed every year to stay covered. The scheme is offered by banks/post offices and administered through life insurance companies. All individuals who are account holders of participating banks/post offices and are between 18 and 50 years old are eligible to buy this policy.

Key Features of Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)

• Pradhan Mantri Jeevan Jyoti Bima Yojana is a social security scheme administered by life insurance companies in collaboration with a bank or post office.

• The participating bank will be the master policyholder of the scheme.

• The policy tenure is one year and should be renewed every year until the policyholder reaches the age of 55.

• The scheme covers death due to any cause, but coverage starts after 30 days of policy purchase except in case of death due to an accident.

• Individuals can exit the scheme anytime and re-join at any time.

• There’s a fixed sum insured of INR 2 lakh with an affordable premium.

• PMJJBY is a term insurance plan; hence, it doesn’t have maturity or surrender benefits.

Eligibility Criteria for Pradhan Mantri Jeevan Jyoti Bima Yojana

• The applicant must be between 18 and 50 years old.

• The applicant must have a savings bank account or post office account; an Aadhar number must be linked to the account.

How to Enrol for the PMJJBY Scheme?

One can enrol in the PMJJBY scheme online or offline.

• Steps to enrol offline

Step 1:

Download the Pradhan Mantri Jeevan Jyoti Bima Yojana application form from https://www.jansuraksha.gov.in/Forms-PMJJBY.aspx.

Step 2:

Duly fill and sign the form with details like name, email address, savings account number, etc.

Step 3:

Submit the form with self-attested copies of the required documents to the bank or post office where you have a savings account. Collect the acknowledgement slip.

Step 4:

After successful verification of the documents, your policy will be issued, and the premium will be auto-debited from your account.

• Steps to enrol online

Step 1:

Step 2:

Click on the Insurance Tab, select Social Security Schemes, and then tap on Pradhan Mantri Jeevan Jyoti Bima Yojana.

Step 3:

Select the bank/post office account from which the premium will be paid.

Step 4:

Enter nominee details, give your consent, and submit the form.

Once the policy is issued, the premium will be auto-debited every year from your account.

How Does PMJJBY Work?

The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a life insurance policy with a sum insured of INR 2 lakh. If the policyholder dies during the policy term, the beneficiary receives compensation up to the sum insured. After the policyholder’s demise, the nominee has to approach the bank or post office from where the policy was issued and collect a claim form and discharge receipt. Then, he/she needs to submit the duly filled claim form along with documents like a death certificate, discharge receipt, and a copy of the nominee’s cancelled cheque or bank account details.

The participating bank or post office will check if the policy was active on the day of the policyholder’s death, verify the claim and nominee details, and forward all the documents to the concerned insurance company within 30 days from the claim request.

The insurance company will then verify if the claim form and documents are legitimate in all respects. Once the authenticity of the claim is verified and approved, the money will be disbursed to the nominee’s bank account.

Benefits of the PMJJBY Scheme

The benefits offered under PMJJBY are:

• In case of the policyholder’s death, the nominee or beneficiaries of the policy will receive a lump sum compensation of INR 2 lakh.

• The scheme covers death due to any reason.

• The premium is affordable at INR 436 per annum.

• The beneficiary is eligible for a tax benefit on the premium paid towards the policy under Section 80C of the Income Tax Act.

• The enrolment process is easy and simple.

Exclusions

• The scheme comes with a 30-day lien period. This means no compensation will be awarded to the nominee if the insured dies within 30 days from the date of policy enrolment except in case of death due to an accident. If the insured meets with an accidental death during these 30 days, the beneficiary will get the compensation.

• Self-inflicted injuries or suicide

• Attempt to suicide under the influence of alcohol or drugs

FAQs

1. Who administers Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)?

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is administered or managed through LIC or other life insurance companies in collaboration with participating banks or post offices. The participating banks/post offices will be the master policyholders of the scheme.

2. If I exit the scheme now, can I join later?

Yes, you can re-join anytime if you meet the eligibility conditions.

3. What is the validity of PMJJBY?

PMJJBY is valid for one year and has to be renewed annually. The coverage period is from 1st June to 31st May.

4. What is the entry and exit age to enrol in the scheme?

Anyone between the ages of 18 and 50 years and having a savings bank or post office account is eligible for the scheme.

5. What is the coverage amount under the PMJJBY scheme?

PMJJBY has a fixed sum insured of INR 2 lakh. The nominee will receive this amount after the policyholder's demise during the policy term. However, if the policyholder passes away within 30 days from the date of policy enrolment, no claims will be paid. The only exception is accidental death.

Conclusion

Pradhan Mantri Jeevan Jyoti Bima Yojana is an affordable life cover providing financial security to the policyholder’s family after his/her demise. When the primary breadwinner meets with an untimely demise during the policy term, compensation will be provided to the nominee of the deceased. In addition to this social security scheme, every person must have health insurance plans for family or a Mediclaim policy to stay financially prepared for any medical emergency.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

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