Pradhan Mantri Jeevan Jyoti Bima Yojana- Eligibility Criteria, Features, Coverage, Premium Details, and more

The PMJJBY (Pradhan Mantri Jeevan Jyoti Bima Yojana) is an Indian government-sponsored life insurance scheme. The news was revealed in the 2015 budget. The one-year life insurance plan is renewable from year to year and covers you in the case of an unexpected death. It gives protection of Rs.2 lakh in the case of a policyholder’s untimely death for a low yearly premium of Rs.330. This plan does not include any investment components; it is just an insurance plan. The Life Insurance Corporation of India (LIC) and other insurance companies prepared to work with banks to market the product under identical conditions are offering the plan.

Eligibility Criteria for Pradhan Mantri Jeevan Jyoti Bima Yojana

• Anyone with a savings bank account between the ages of 18 and 50 is eligible for the programme.
• Even if a person has multiple bank accounts, he can only participate in the plan with one of them.
• The scheme is open to all account holders in the case of joint accounts.
• Your Aadhar card must be linked to your savings account.

Key Features of Pradhan Mantri Jeevan Jyoti Bima Yojana

• The programme will last one year. The coverage period runs from June 1st through May 31st the following year.
• The scheme’s premium is deducted automatically from the covered member’s bank account.
• The insured member must agree to the premium being automatically taken from his bank account. Only if the approval is granted will the premium be deducted, and the member will be covered. The approval must be obtained by June 1st to have a full year of coverage.
• After the first 45 days of the plan’s commencement, death coverage begins. This means that if the insured dies within the first 45 days of entering the scheme, no claim will be paid. The 45-day waiting period does not apply in the case of accidental deaths, however.
• Premiums under the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) are exempt from GST.

Coverage and Premium Details of Pradhan Mantri Jeevan Jyoti Bima Yojana

• Within the one-year coverage period, the plan covers death. In the event of death, the money assured, which is INR 2 lakh per insured member, is paid. A member can only participate in one scheme and have one bank account. The insurance coverage will only cover one of the member’s bank accounts, even if he or she has several.
• The annual premium for each insured member is INR 330.
• The premium is deducted from the insured’s savings account. The premium is divided into several components, which are listed below:

1. The insurance company receives INR 289 as a premium for providing insurance coverage.
2. The agency or bank that supports the individual in registering in the plan is reimbursed for the costs of insuring the plan’s participants. Every year, the reimbursement amount is INR 30 per insured member.
3. In addition, the bank is compensated for the costs of administering the scheme. The annual compensation is INR 11 per covered member.

How can you apply for Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)?

Those who want to participate in the Pradhan Mantri Jeevan Jyoti Bima Yojana can contact the banks where they hold savings accounts. Other life insurance companies, as well as the LIC, participate in the scheme. Banks develop relationships with insurance companies to provide insurance coverage to their account holders under the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY).

Even though coverage begins on June 1st of each year, late enrollees can still pay the fee and get coverage. The individual’s coverage would begin on the date the premium was deducted from his or her account, but the complete year’s premium would have to be paid. Enrollment is a straightforward procedure. The application form can be found on the government’s website. The individual can complete the enrolment by filling out the form and submitting it to the banking institution with whom he or she has an account. The form is available in several languages, and the user can fill it out in the language of his or her choice.

Enrollment in the programme can now be done via SMS or net banking at many banks. To finish the enrolment procedure, the applicant must agree to the scheme’s terms and conditions and authorise the premium to be withdrawn automatically from his or her bank account. On the application form, the candidate must accurately fill out the following information:

• The number on his or her Aadhar Card
• Number of his or her Savings Bank Account
• The applicant’s permanent address
• The applicant’s legal guardian’s address
• To receive updates regarding the coverage, provide your phone number and email address.

Final Thoughts

The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) promotes the poor and backward to purchase insurance at very low premium rates. However, the programme is not confined to the poor; anyone with a bank account is allowed to participate. Individuals can take use of insurance benefits since the coverage is adequate and the expenses are affordable. To enhance people’s lives, the government is also promoting the programme to the general public in India. As a result, the system is expected to see significant growth in the next years.