Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)

8 min read Posted on 30 Aug 2024

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Pradhan Mantri Jeevan Jyoti Bima Yojana, launched by the Government of India, is a term insurance plan that aims to give financial security, especially targeting rural India, when a family's primary breadwinner passes away from illnesses or other causes. In his budget speech, the former finance minister, Mr Arun Jaitley, first mentioned the scheme in February 2015. The policy was officially unveiled on May 9, 2015, in Kolkata by Prime Minister Narendra Modi.

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) Features

Since the government initiates it, PMJJBY has come with many features. Here are a few of them.

The Yojana is available for one year and can be renewed annually.
PMJJY scheme has no maturity benefit because it only provides term insurance to cover life risk.
For a small annual premium of INR 330, the plan offers a 2 lakh rupee life insurance benefit.
A savings bank account is a must in order to enrol for the scheme.
Risk coverage begins 45 days after enrollment. However, the sum assured is paid in the event of accidental death.

Pradhan Mantri Jeevan Jyoti Bima Yojana's (PMJJBY) Benefits

Here, we have covered the benefits in-depth so that you get everything you need to know about the Pradhan Mantri Jeevan Jyoti Bima Yojana.

Key Areas	Benefits
Death Benefit	When a policyholder dies for whatever reason, the plan provides a vital death benefit coverage of INR 2,00,000 for their family.
Tax Benefits	Section 80 C of the Income Tax Act allows for a tax advantage to be claimed on the premium paid for PMJJBY.
Maturity Benefit	There is no maturity benefit available because this is a pure term insurance policy that solely provides death benefits.
Risk Coverage	The Pradhan Mantri Jeevan Jyoti Bima Yojana plan addresses all life-related risks. After the 45-day cooling-off period, the policyholder's nominee receives the Death Benefit sum in the event of death for any reason. The cooling-off time provision is not applied, and the death benefit amount is paid to the nominee if death results from an accident.

Eligibility Criteria Under Pradhan Mantri Jeevan Jyoti Bima Yojana or PMJJBY

To enjoy the benefits of the PMJJBY policy, you need to fulfil the following eligibility criteria.

Minimum entry age	18
Maximum entry age	50
Maximum coverage age	55
Term of the Policy	1 year
Bank account Status	Active
Coverage period	1 June - 31 May
Sum assured	INR 2,00,000

Reasons to Buy PMJJBY Policy

PMJJBY scheme details are pretty fascinating and offer several reasons to buy the scheme.

Protection from Financial Constraints: With uncertainty around the corner all the time, the demise of the sole earner of the family can lead to financial distress. A term insurance policy will provide coverage for accidental death and other causes of death.
Low Premium: The insurance will scale back the premium payments following the month of enrollment, demonstrating other ways to cut costs.
Tax Benefits: After picking a plan, policy buyers may deduct certain expenses under section 80 C of the Income Tax Act of 1961.
Option of Renewal: Even though PMJJBY is for one year, you can renew the scheme to get the same benefits.
Simple Claim Process: Since it is a government scheme, policyholders can easily follow the scheme's very straightforward claim procedure because it is so straightforward.

Premium Break-up Under PMJJBY Policy

INR 289 per annum per insured person - Premium to LIC/ Insurance company.
INR 30 per annum per insured person - Reimbursing the agent or bank for expenses
INR 11 per annum per insured person - Payment to participating banks for administrative costs.

Enrollment Process Under PMJJBY Policy

To enroll for the PMJJY scheme, you must undergo a specific process.

Anyone interested in joining the scheme should know the Indian banks that provide the service. They can also visit the local LIC office or any other life insurance provider to learn more about the coverage.
After linking the plan to their savings bank account, one can add their name to the plan. Policy buyers are only permitted to select one account throughout the registration procedure if they have several accounts.
After connecting the plan to their savings bank account, one can add their name to the plan. Policy buyers are only permitted to select one account throughout the registration procedure if they have several accounts.

Termination of Insurance Cover

In the event of below mentioned cases, your insurance cover will be terminated immediately.

Upon the member's passing.
The age of the member reaches 55, as well as the date of the annual renewal.
Non-Payment of the premium.
Account closure with the bank or insufficient funds to maintain the policy's coverage
the day that, if the member had insurance through more than one bank or had many savings accounts with the same bank, another insurance company paid out the claim on their behalf. In this case, the insurance cover will be terminated.

Claim Process Under PMJJBY

To file a claim under PMJJBY policy, the beneficiary needs to follow some steps to keep the process simple, easy, and free from hassle.

Actions taken by the Beneficiary

Step 1: The beneficiary must go to the policyholder's bank with the death certificate in the event that the insured individual passes away owing to any terrible circumstance. The beneficiary must go to the branch where the insurance is linked.

Step 2: The nominee must obtain the claim form from the life insurance company or bank.

Step 3: The recipient must submit the claim form after receiving it and thoroughly fill it out and submit it along with the necessary documentation.

Actions taken by the Bank

Step 1: The first step taken by the bank is to validate the claim process by checking the documents submitted.

Step 2: Once validated, the bank will send the details to the designated insurance company.

Actions taken by the Insurance Company

Step 1: The insurance company will validate the details from their end to ensure there is no issue.

Step 2: The insurance company will process the claim, and the beneficiary will get the amount in the bank account within 30 days.

List of Documents Needed to Submit a Claim Under PMJJBY

Under Pradhan Mantri Jeevan Jyoti Bima Yojana, the claim process is easy. The life claim process will not be completed without the documents mentioned below. So, make sure you submit all the documents that are mentioned.