Benefits & Features of the Pradhan Mantri Jeevan Jyoti Bima Yojana
The PM Jeevan Jyoti Bima Yojana (PMJJBY), introduced in 2015 is a 1-year life insurance program funded by the Central Government . The plan can be renewed after the first year and offers financial protection to the policyholder and their family. Insurance companies run the program in the public and private sectors in collaboration with established commercial banks, rural and regional banks, and cooperative banks. However, the participating banks hold the scheme's master policy.
What is PM Jeevan Jyoti Bima Yojana?
The PMJJBY policy was created and launched to ensure that the policyholder’s family is financially protected in case the policyholder passes away. It aims to give the underprivileged and low-income groups financial security. With the minimum requirement of an open savings account, anyone in the age bracket of 18 and 50 years can purchase this life insurance policy.
The policy beneficiaries will receive a death benefit of Rs. 2 lakh upon the policyholder's death.
Here’s all you need to understand and know about the PMJJBY in detail.
Following is the eligibility criteria to apply to PMJJBY:
- You must be an Indian citizen
- You must be 18 to 50 years of age
- You need a bank account:
- Even if you have more than one savings bank account, you can subscribe to the scheme only with one.
- You must link your Aadhaar card to the participatory bank account
- You must pay a yearly premium of Rs. 330 for this plan
Features of the Pradhan Mantri Jeevan Jyoti Bima Yojana
1. Simple Renewal
The scheme offers life insurance protection for a period of 1 year. You can renew the policy on an annual basis after the 1 year period ends.
2. Superior Insurance Protection
PMJJBY offers a life insurance policy worth Rs. 2 lakh with yearly premiums as low as Rs. 330.
3. No advantages of maturity
The policy gives you protection only for the term of the policy. Note that you cannot redeem any maturity benefits with these plans.
4. Waiting Period
The life insurance coverage begins 45 days after the date of enrollment. However, in the event of a fatal accident, the sum assured amount is paid out.
Benefits of PMJJBY
This Government-sponsored insurance program comes with several advantages.
The following are the PMJJBY benefits:
1. Cost-effective premiums
The policy has an annual premium of Rs. 330, making it cost effective and affordable.
2. Insured amount
The insurance plan provides death benefits of up to Rs. 2 lakh upon the policyholder's demise, regardless of the cause of death.
3. Tax Benefit
Section 80C of the Income Tax Act of 1961 allows for tax deductions for contributions made to this plan.
What is the Process to Claim the Benefits of PMJJBY?
The nominee or successor of the insured must go to the bank branch in which the insured has an account to claim PMJJBY. However, the insurance benefit will not be payable if the insured person passes away within 45 days of purchasing the policy for any reason other than an accident.
Steps to be taken by the nominee/beneficiary
The beneficiary must go to the same branch where the insured's savings account is connected to the program. The insured person's death certificate must be provided to the bank by the beneficiary.
The nominee must obtain the claim form from the insurance provider or the bank.
After receiving the claim form, the beneficiary must fill it out and submit it along with pertinent paperwork, including a death certificate, a discharge receipt, the policyholder's bank account information, a photocopy of a cancelled check, and a bank statement.
Steps taken by the bank
After the beneficiary has submitted the claim form and all necessary paperwork, the bank verifies the paperwork and forms.
After verification, the bank submits the necessary documentation to the chosen insurance provider.
- A receipt for discharge.
- Correctly completed claim form.
- Copied beneficiary's cancelled check.
- Certificate of Death.
Steps that the insurance company will take
The insurance company also verifies the files after receiving the relevant paperwork and claim form from the bank.
Following the completion of the claim verification process, the claim amount is transferred to the nominee's bank account.
The insurance provider has 30 days from the time the claim is filed to approve and pay the claim.
The PMJJBY is a government-initiated insurance plan with the lowest premium costs, making it advantageous for those with limited resources. As a comprehensive policy, the plan guarantees financial security for the insured's family and offers a financial safety net so they can handle any emergency.
These three factors combine to make the plan a profitable investment choice.
- In an emergency, the plan provides the insured's family financial security.
- The plan provides a simple switching and enrollment process.
- Also, with the lowest premium rate of Rs. 330 per year, anyone can easily obtain it.
PMJJBY is undoubtedly one of the most reliable and valuable plans for a low-income category to purchase, with all these features and advantages.