Has this question ever bothered you? What will happen to your wife and kids if something untoward happens to you? Yes, nothing can replace the emotional loss, but there’s no need for them to suffer financially. This is why you need life insurance.

Fortunately, the Government has realized the importance of life insurance and has the Pradhan Mantri Jeevan Jyoti Bima Yojana. This is a very affordable life insurance plan, to cover the poor citizens across India. If you don’t have life insurance or believe it’s costly, do look at the Pradhan Mantri Jeevan Jyoti Bima Yojana. You might not be there for your family, but do leave a safety net behind.

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Pradhan Mantri Jeevan Jyoti Bima Yojana

What is Pradhan Mantri Jeevan Jyoti Bima Yojana? It’s a one year term life insurance plan, which you can renew each year. If the life assured (person who avails the life insurance plan), dies within the term of the plan, the nominee gets the death benefit. It is a pure risk plan with no survival benefit. You must be familiar with a term life insurance plan. If the policy holder dies within the term of the plan, nominees get the sum assured/death benefit. This plan has no survival benefit.

You can avail the benefits of Pradhan Mantri Jeevan Jyoti Bima Yojana between 1st June and 31st May of each year. To avail the benefits of Pradhan Mantri Jeevan Jyoti Bima Yojana for 1st June 2018 to 31st May 2019, you should have enrolled and given the auto-debit consent by 31st May 2018. If you have not availed Pradhan Mantri Jeevan Jyoti Bima Yojana, make sure to do so by next year. It’s never too late.

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Features of Pradhan Mantri Jeevan Jyoti Bima Yojana:

Premium is just Rs 330 a year which is just around Rs 28 a month. This is peanuts for a life insurance plan. Premiums are auto-debited from your bank account on giving consent for the same.

On death of a policyholder within the term of the plan, family/nominees get Rs 2 Lakhs.

You have to opt for the scheme each year or you can choose the long-term option, where premium is auto debited each year.

There are no medical tests. Just a simple declaration of good health will suffice.

With standard instructions given for auto-renewal, there’s no risk of a lapse of the plan.

You enjoy risk cover under Pradhan Mantri Jeevan Jyoti Bima Yojana, only after 45 days. Insurers don’t settle claims during the first 45 days of the plan. Death due to accidents is exempt from the clause.

Eligibility for Pradhan Mantri Jeevan Jyoti Bima Yojana:

You need to be between 18 to 50 years, and have a savings bank account. If you have a PMJDY account which is a zero balance savings bank account, you can avail the benefits of Pradhan Mantri Jeevan Jyoti Bima Yojana. If you have joined the scheme before 50 years, you continue to enjoy risk cover till the age of 55 years as long as premiums are paid.

Even with multiple bank accounts, you can subscribe to this scheme only with a single bank account.

The term of the policy is one year and its renewable each year.

If you are opening a joint PMJJBY account, all the holders can join the scheme on meeting the eligibility criteria. Each person has to pay the premium of Rs 330 a year.

The PMJJBY scheme is administered through LIC and private life insurers. Your banker has tie-ups with insurers and he can help you enroll under PMJJBY scheme.

The renewal date for PMJJBY scheme is June 1st of each year. If you have exited the scheme, you can easily rejoin by paying the premium of Rs 330 a year.

Benefits of Pradhan Mantri Jeevan Jyoti Bima Yojana:

On demise of a policy holder within the term of the plan, nominees get Rs 2 Lakhs.

Premiums paid enjoy tax deduction under Section 80C of the income tax act.

You have the auto debit linked to the SB account to pay premiums.

It enjoys a simple and friendly claim settlement process.

You can walk out any time you like, and rejoin at any time.

How to enroll under Pradhan Mantri Jeevan Jyoti Bima Yojana?

Just download the form and submit to the banker. You can also opt for the SMS based enrollment process. Enroll for the PMJJBY through net banking. You must auto-debit the money by 31st May of each month.

Claim settlement under Pradhan Mantri Jeevan Jyoti Bima Yojana

Nominee can approach the bank where the policy holder had the account, (This is where he/she was covered under PMJJBY), and show the death certificate of the policyholder.

You nominee can collect the claim form and discharge receipt from the bank or designated branches of insurers, hospitals or your friendly insurance agent can help you with the process.

You/nominee will have to submit the claim form, discharge receipt, death certificate and a photocopy of a cancelled cheque of the nominee’s bank account or the bank account where the policy holder had an account where he/she was covered under PMJJBY.

Take a look at the premium split at Pradhan Mantri Jeevan Jyoti Bima Yojana:

Out of the Rs 330 a year premium paid on Pradhan Mantri Jeevan Jyoti Bima Yojana, Rs 289 goes to the insurer. The bank agent gets Rs 30 a year as reimbursement of expenses. Reimbursement of administrative expenses is around Rs 11 a year.

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