What is PMJJBY?
PMJJBY which stands for Pradhan Mantri Jeevan Jyoti Bima Yojna was announced by Arun Jaitely in the budget 2015. PMJJBY is an insurance scheme that offers life insurance cover of Rs 2, 00,000 to all saving bank account holders. It is a type of insurance coverage that can be renewed after every year. The policy offers death cover to beneficiaries of the policy. Pradhan Mantri Jeevan Jyoti Bima Yojna is a pure term insurance cover as no investment component is involved. Sum assured is paid to the beneficiary in the event of the death of the policyholder.
Key Features of PMJJBY:
- The basic cover of the policy is for 1 year.
- Policyholders are allowed to renew the policy at the end of each year.
- The policy offers flexibility to the insured and the insured can opt out of the policy at any time.
- This policy offers a convenient and customer friendly claim settlement process to policy holders.
- You can opt for a cover for more than a year. However, in this case, amount will be auto debited from your savings account.
- The scheme will terminate if the insured is above 55 years of age, or does not have sufficient balance in savings account.
Benefits of PMJJBY:
Like any other insurance policy, this policy offers a protection cover for your loved ones. The policy will pay a basic cover of Rs 2, 00,000 to the nominee in case of sudden demise of the policyholder. Not everyone can afford a comprehensive life insurance cover. The main objective of Pradhan mantra insurance scheme is to accelerate the penetration of insurance in India.
- A saving bank account holder aged 18 to 50 is eligible to participate in this scheme.
- One can participate in this scheme through one bank’s account only.
- Aadhar linking to bank account is mandatory.
How to enrol for the scheme?
Deadline through auto debit is already is over. If you now want to enrol into this scheme you will have to pay full premium amount and submit a good health certificate.
The main aim of this policy is to offer affordable life insurance coverage to everyone with a basic access. The premium for PMJJBY is as low as Rs 330 P.A. Through Auto debit, the amount is deducted in one installment. Premiums need to be paid before 31st May of every year.