Want to share with your friends too?

Business
29 Dec 2018

#PolicyExplainer: Get Rs. 2,00,000 life-insurance at Rs. 330/year with PMJJBY

All about the government's Jeevan Jyoti Bima Yojana

Life insurance is one of the most important financial products to have. It is the best way to protect one's family and their future in case of the policyholder's untimely demise.

However, many Indians don't have any life insurance coverage. To address this, the government launched the affordable Pradhan Mantri Jeevan Jyoti Bima Yojana in 2015.

Here's everything you should know about the scheme.

In context

All about the government's Jeevan Jyoti Bima Yojana

PM Modi formally launched the scheme in May 2015

Pradhan Mantri Jeevan Jyoti Bima Yojana was first announced during the 2015 Budget speech by Union Finance Minister Arun Jaitley in February. Later, PM Narendra Modi had formally launched the affordable life insurance scheme offering coverage for death in Kolkata in May 2015.

What exactly is the PMJJBY scheme about?

About

What exactly is the PMJJBY scheme about?

The Pradhan Mantri Jeevan Jyoti Bima Yojana is a one-year life insurance scheme that offers a yearly life insurance cover of Rs. 2 lakh for an annual premium as low as Rs. 330.

The life cover under the scheme starts from 1 June of a particular year and is valid until 31 May of the next year. The scheme is renewable year after year.

Love Business news?

Stay updated with the latest happenings.

Notify Me

Eligibility

Who all are eligible for the PMJJBY scheme?

The PMJJBY scheme is available to any person in the age group of 18 to 50 years. They must have a savings account at those banks participating in the scheme.

Even if they have more than one bank account, subscribers can enroll through only one account.

Also, linking of Aadhaar card to their bank account is mandatory for this scheme.

How to enroll or register for PMJJBY scheme?

Enrollment

How to enroll or register for PMJJBY scheme?

PMJJBY is offered through the Life Insurance Corporation of India (LIC) and other participating insurance companies that have tied up with banks for the scheme.

For enrollment, one can download the scheme enrollment form from Jan Suraksha portal and fill up required details like name, Aadhaar number, bank account information, nominee details, etc. and submit to bank.

Some banks offer Netbnking/SMS-based enrolment too.

Details

Annual premium payable through auto-debit facility

Enrollment/renewal for the scheme has to be done by 31 May of a year for coverage up to 31 May of the next year.

At the time of enrollment, subscribers should give their consent for auto-debit of Rs. 330 annual premium from their savings account.

The cover starts 45 days after enrolment, but upon death due to an accident, the sum assured is paid.

When does the assurance on policyholder's life terminate?

Termination

When does the assurance on policyholder's life terminate?

The assurance on the life of the PMJJBY policyholder terminates when the subscriber attains 55 years of age.

Other circumstances include: Closure of subscriber's bank account or insufficient balance for renewal/enrollment. If the member is covered through more than one account and premium is received by LIC/insurer inadvertently, then insurance cover gets restricted to Rs. 2 lakh and premium for duplicate insurance(s) gets forfeited.

Ask NewsBytes
User Image

Most asked questions

Can I join the scheme even after 31 May?

Are there any tax benefits available under PMJJBY?

Can a subscriber discontinue and rejoin the scheme?

How much to pay if I join after 31 May of a year?

More questions

Can I join the scheme even after 31 May?

Asked 2018-12-29 23:45:32 by Ankita Dutta

Answered by NewsBytes

Yes, in case you have missed the May 31 deadline for enrolment, then you can join subsequently by paying the full annual premium or the proportionate amount; the premium amount depends on the date of joining.

Are there any tax benefits available under PMJJBY?

Asked 2018-12-29 23:45:32 by Anika Singh

Answered by NewsBytes

Yes, subscribers can claim a tax benefit on the premium paid towards the PMJJBY policy, which is eligible for tax deduction under section the 80C of Income Tax Act. However, if the insurance holder fails to submit form 15 G/15 H then any life insurance proceeds exceeding Rs. 1,00,000 will be taxable by 2%.

Can a subscriber discontinue and rejoin the scheme?

Asked 2018-12-29 23:45:32 by Ishan Chopra

Answered by NewsBytes

Yes, the PMJJBY scheme allows a subscriber who wants to discontinue or walk out of the scheme to do so at any time. They can also rejoin the scheme in the future.

How much to pay if I join after 31 May of a year?

Asked 2018-12-29 23:45:32 by Aaradhya Trivedi

Answered by NewsBytes

As per the 2018-19 rules, full annual premium is payable for enrollment in June-August 2018. For enrolment in September-November 2018, Rs. 258 is payable. For enrollment in Dec'18-Feb'19, Rs. 172 is payable. And, for enrolment in March-May 2019, Rs. 86 is payable.

Next Timeline