On May 9th 2015, the Prime Minister of India, Shri Narendra Modi launched 2 social security insurance schemes in Kolkata – the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and the Pradhan Mantri Suraksha Bima Yojana (PMSBY). PMJJY is a life insurance scheme whereas PMSBY is an accidental insurance scheme . These schemes are mainly targeted at the poor and middle class sections of the society. Let us understand the features of PMJJBY in this article.
The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a term insurance product. It means that in case of sudden death of the policy holder, the sum assured in the plan will be given to the nominee mentioned in the policy document. But unlike LIC products which give pay some amount of money in case the policy holder survives during the tenure of the policy, the PMJJBY does not offer any such survival benefits after the expiry of the policy term. Due to this reason, this insurance product is made available at lower premiums. It is a suitable scheme for earning individuals with financial dependents.
Eligibility Criteria for PMJJBY
All citizens of India aged between 18 to 50 years are eligible to take the PMJJBY plan. One must also have a savings bank account with the participating bank (banks offering this scheme). In case a person has more than one savings account in the same or different bank, then he/she is eligible to buy this plan through only one account.
If someone joins this scheme just before completing 50 years of age, he can still continue to be covered under the scheme up to 55 years, subject to renewal and premium payment. However, one cannot buy this insurance plan after completing 50 years of age.
In case an individual is also covered by other endowment plans, term insurance plans, ULIPs or any other insurance schemes, he/she is still eligible to subscribe to the PMJJBY.
Subscription period of Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
Subscription for the PMJJBY life insurance product for the period 1st June 2015 – 31st May 2016, is now open. However, the last date to apply for this subscription period was 31st March 2015, but the government has extended this deadline to 31st August 2015.
Once the subscription period has elapsed, once must once again apply for the scheme (for the period 1st June – 31st May). This process has to be done every year. One can also choose a long-term option and in this case the banks will auto-debit the premium ever year from their account.
Also See: Pradhan Mantri Jeevanjyoti Bima Yojna - bringing insurance to common man's doorstep
Total life risk coverage under PMJJBY
Under PMJJBY, Rs. 2, 0,000 (2 lakh) will be paid as life coverage on the policy holder's death due to any reason (natural or accident). The benefit will be given to the nominee.
Premium amount of PMJJBY scheme and mode of payment
Subscribers have to pay an annual premium of Rs.330, to be paid in one installment. The bank will auto-debit this amount from the policy holder's account on or before 31st May of the annual coverage period. In case you failed to pay the premium before the deadline, you need to produce a certificate of good health and pay the premium.
The Government is making efforts that the premium amount is not increased for at least 3 years. However, the premium would be revised depending on the claims received and may be increased based on those results. Timely payment of premium is therefore necessary as one may or may not be in good health to get a certificate of good health and may loose the benefits of this scheme.
Who will implement the PMJJBY life insurance scheme?
The Life Insurance Corporation of India (LIC) will offer PMJJBY and along with a few life insurance companies, will manage the scheme by coordinating with the participating banks.
Breakup of the annual premium of Rs. 330 towards PMJJBY
• Premium to the insurance company = Rs.289
• Reimbursement to intermediaries like BC/Agents = Rs.30
• Reimbursement to bank = Rs.11
Income Tax benefits under PMJJBY
The premium amount towards PMJJBY is eligible for tax deduction under section 80C.
Documents required to subscribe to the PMJJBY
A copy of Aadhar card is considered as the primary and valid document and is enough to subscribe to this scheme.
How to subscribe to Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) scheme?
Cases where your PMJJBY subscription may be terminated
Though the insurance cover of Rs. 2 lakh may not be a very big amount, it is still a very good scheme considering the cost and benefit aspect. As the premium amount is also very low and affordable my most, it is a good idea to subscribe to the scheme.
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Even if we are not interested in it, we must encourage and educate about the scheme and its features to our maids, drivers, servants, the poor near our localities and help them in our own way of making their lives somewhat secure.
For further details:
Official Website: www.jansuraksha.gov.in
National toll-free NO: 1800-180-1111,1800-110-001
The next article will cover the features of the Pradhan Mantri Suraksha Bima Yojana (PMSBY)
This article includes all the details about one of the schemes introduced by the government. Apart from the salient features of the scheme, the additional details about termination clauses, eligibility in a simple and lucid style makes the article worth reading. However, will the scheme continue to make headway in the coming years, or just fizz out as in the case of Jan Dhan Yojna?