Pradhan Mantri Jeevan Jyoti Bima Yojana

Pradhan Mantri Jeevan Jyoti Bima Yojana is a life insurance policy introduced by the central government of India to help the poor and low-income portions of the population grow. It is for people between the ages of 18 and 50 years old.This scheme was first introduced by the late Finance Minister Arun Jaitely in the annual financial budget of 2015.

It provides annual life insurance coverage of Rs. 2 lakh in the case of the death of the policyholder during the policy term. The coverage can be purchased for Rs. 330 per year, which is the lowest premium rate offered.

To learn more about the policy, here we have discussed in detail all you need to know.

The following are some of the salient features of Pradhan Mantri Jeevan Jyoti Bima Yojana.

1. Coverage

Pradhan Mantri Jeevan Jyoti Bima Yojana has a simple and easy claim process. It provides coverage of Rs. 2 lakh to the nominee of the scheme in the case of untimely death of the insured person. According to the Income Tax Law, the amount of coverage given to the user is tax deductible.

2. Tenure

Pradhan Mantri Jeevan Jyoti Bima Yojana covers you for a year from the time you sign the contract. As a type of term life insurance, up to the age of 55, the insured person can renew the policy every year. If the covered person wants to join the scheme later, he or she can do so by submitting a health certificate and paying the policy premium.

3. Premium

Pradhan Mantri Jeevan Jyoti Bima Yojana provides insurance coverage for a low annual premium of Rs. 330. This scheme is a lucrative investment option for low-income individuals. The premium of the policy remains the same for all age categories between 18 and 50 years.

4. Enrollment Period

The registration period of Pradhan Mantri Jeevan Jyoti Bima Yojana from the 1st of June to the 31st of May of the next year. Subscribers must enrol and provide their auto-debt consent throughout the enrolling period. If an insurance buyer wants to buy a policy after June 30th, they will have to pay the entire premium of the policy year in one lump sum from the month of joining.

5. Mode Of Payment

The bank automatically deducts the premium from the savings accounts of the subscribers. This is the only option to pay the insurance premium. The renewal period of Pradhan Mantri Jeevan Jyoti Bima Yojana is from May 25th to May 31st, and the policy renewal premium is likewise auto-debited from the savings bank account of the policyholder. If the insured person wants to terminate the insurance, they must submit a cancellation request in order for the premium payment deduction to be discontinued.

6. Tax Benefit

According to the Income Tax Laws, which are subject to change, the premium paid to the scheme qualified for a tax exemption. It is essential to take guidance in order to save money.

Benefits Of Pradhan Mantri Jeevan Jyoti Bima Yojana Scheme

The Pradhan Mantri Jeevan Jyoti Bima Yojana plan has the following advantages.

1. Death Benefit

Pradhan Mantri Jeevan Jyoti Bima Yojana, like any other term insurance plan, provides a death benefit of up to INR 2 lakh in the case of death of the policyholder.

2. Risk Coverage

All life risks are covered by the Pradhan Mantri Jeevan Jyoti Bima Yojana plan. It provides death payments to the relatives of the policy if the policyholder dies for any cause. This sum will be paid 45 days after the date of death. If the policyholder dies in an accident, there is no waiting time and the death benefit is paid out immediately to the relatives.

3. Tax Benefit:

Tax deductions can be claimed for investments made in the Pradhan Mantri Jeevan Jyoti Bima Yojana plan under Section 80C of the Income Tax Act, 1961.

4. Maturity Benefit

The Pradhan Mantri Jeevan Jyoti Bima Yojana does not provide a survival or maturity benefit because it is a pure term insurance policy.

Eligibility Criteria for Pradhan Mantri Jeevan Jyoti Bima Yojana

Claim Settlement Process Of Pradhan Mantri Jeevan Jyoti Bima Yojana

The Pradhan Mantri Jeevan Jyoti Bima Yojana features a very simple and quick claim settlement process. Here are a few easy actions that a recipient should take when filing a claim.

Steps Taken by the Nominee

Step 1: If the insured individual dies as a result of an unfortunate incident, the beneficiary must go to the bank of the policyholder. The recipient must go to the same branch where the savings account of the policyholder is linked to the plan. The bank will request the recipient to submit the death certificate of the insured person.

Step 2: The claim form must be received from the insurance company or bank by the nominee.

Step 3: When the recipient receives the claim form, he or she must completely fill it out and submit it along with supporting documents such as a death certificate, discharge receipt,bank account details of the policyholder, photocopy of canceled check, and bank information of the nominee.

Steps Taken by the Insurance Company

Step 1: The files are also checked by the insurance company after it receives the related documents and claim form from the bank.

Step 2: The claim amount is transferred to the nominee bank account after the claim verification process is done.

After the claim is filed, the insurance company has 30 days to approve and pay the claim.

Steps Taken by the Bank

Step 1: The beneficiary must submit the claim together with the necessary documents. The documents and forms are checked by the bank.

Step 2: Following verification, the bank submits the following documents to the selected insurance company.

• Receipt of discharge
• Claim form that has been properly completed
• Death certificate
• Copied canceled cheque of the beneficiary

How To Apply For The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)

Pradhan Mantri Jeevan Jyoti Bima Yojana is available from the Life Insurance Corporation (LIC) or any other life insurance company in India. In fact, many banks offer PMJJBY enrollment at their branches. You can register in this plan with just one bank account, irrespective of how many bank accounts you have. Every year, the scheme can be renewed, with the renewal date remaining June 1 for all members. You can rejoin the scheme by paying the annual premium if you quit for any reason.

Process Of Enrollment

• Download the PMJJBY application form from www.jansuraksha.gov.in/Forms-PMJJBY.aspx The form is available in a variety of languages, so pick one that works best for you.
• Submit the completed form to your bank.
• Submit the required papers.
• You will be successfully registered under the scheme after verification.

The majority of banks also provide an SMS-based enrollment option. Check with your bank for more information and then proceed with the application.

Criteria For Termination Of Pradhan Mantri Jeevan Jyoti Bima Yojana

The PMJJBY scheme has the following termination conditions:

• When you (the account holder) reach the age of 55,
• Insufficient balance in the bank account or closure of the related bank account
• If you have several coverages under the PMJJBY scheme, your coverage will be limited to INR 2 lakh, and all other insurance coverages would be canceled and premiums lost.