A Guide to Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
A Guide to Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a life insurance program introduced by the Indian government in 2015. It provides affordable coverage to savings bank account holders aged between 18 and 50 years. Let's explore the advantages, eligibility requirements, and enrolment procedure of this scheme.
Understanding PMJJBY
PMJJBY is categorized as term life insurance, which entails providing a death benefit pay-out to the designated beneficiary in the event of the insured person's demise during the policy period. The plan is annual and necessitates renewal to sustain coverage.
Who Can Enrol?
To be eligible for PMJJBY, you must meet the following criteria:
- Age range: 18 to 50 years old
- Savings bank account ownership: You must possess an account with a participating bank or post office
- Aadhaar card linkage: Your Aadhaar card must be linked to your bank account
Enrolling in PMJJBY
Enrolling in PMJJBY is a straightforward process. You can visit your bank or reach out to the Life Insurance Corporation of India (LIC) or other participating insurance companies. If your bank partners with insurance providers for PMJJBY, they'll guide you through the enrolment steps.
Key Advantages of PMJJBY
- Cost-Effective Premiums: PMJJBY boasts a very reasonable annual premium, presently set at Rs. 330. This amount is automatically deducted from your linked savings bank account upon enrolment and subsequent renewals.
- Death Benefit: In the unfortunate event of the policyholder's death during the coverage year, the nominee receives a lump sum pay-out of Rs. 2 lakhs. This financial aid can significantly help the family navigate challenging times.
- Tax Relief: The premiums paid towards PMJJBY qualify for tax deductions under Section 80C of the Income Tax Act, offering additional financial benefit.
- Automatic Renewal Convenience: PMJJBY offers the advantage of automatic renewal on each anniversary date (June 1st). This ensures uninterrupted coverage as long as the premium is paid on time.
Renewing Your Policy
Renewing PMJJBY is straightforward. The premium amount is automatically deducted from your linked bank account on or before May 31st of each year. It's crucial to maintain sufficient funds in your account to avoid a lapse in coverage.
Claim Settlement Process
If the policyholder passes away, the designated beneficiary needs to visit the bank where the PMJJBY account is linked. The bank will provide the necessary claim form and explain the claim process. Required documents typically include the death certificate, discharge receipt, and the nominee's bank account details. The bank will then forward the claim form and documents to the insurance company for processing.
The insurance company will meticulously examine the claim and verify all details before disbursing the death benefit to the nominee's bank account. The entire claim settlement process typically takes around 30 days from the date the bank receives the claim form.
Important Considerations
- Age Limitation: PMJJBY coverage automatically terminates once the policyholder reaches 55 years of age. However, there are no restrictions on how long you can renew the policy within the eligible age bracket.
- Exclusion Period: There's a 30-day exclusion period applicable to deaths caused by natural causes from the date of enrolment. It's important to note that this exclusion doesn't apply to claims arising from accidental deaths.
- No Maturity or Surrender Benefits: PMJJBY is purely a term life insurance plan. It doesn't offer any maturity benefit or surrender value if the policy is discontinued before the policyholder's death.
Conclusion
If you fall within the age range of 18 to 50 years old and have a savings bank account, consider enrolling in PMJJBY to ensure the financial security of your family in case of an unexpected event.