One of the most popular life insurance scheme for common citizens by Government of India. PMJBY was launched in 2015 for people of low-income background and aims to ensure that every citizen irrespective of his or her economic background gets life insurance coverage. So in this article you will learn everything related to PMJJBY Following, Eligibility, Benefits, Premium Amount, How to claim and some important FAQ.
What is PMJJBY Policy?
PMJJBY: The Pradhan Mantri Jeevan Jyoti Bima Yojna is a term insurance plan from the government that provides an insurance cover of ₹2 lakh to the nominee in case of demise of the policyholder due to any reason, including natural death. This PMJJBY policy is a yearly renewable one and is offered to persons in the age range of 18 years to 50 years, who has any saving bank account. The PMJJBY Policy is primarily designed with the objective of supporting financial inclusion and to provide insurance security for people who are unable to take expensive life insurance plans.
The PMJJBY policy has emerged as one of the biggest life insurance programs across entire globe in terms of number of subscribers since its inception, covering crores Indians across urban and rural areas.
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Key Features of PMJJBY Policy
It is also essential to know the salient features of PMJJBY before applying for it.
- The PMJJBY policy gives you a life cover of Rs. 2 lakh on death due to any reason.
- The PMJJBY policy has a wider reach due to its low annual premium.
- Any person between the ages of 18 to 50 years owning a bank account can take the PMJJBY policy.
- The PMJJBY policy has to be renewed every year, and insurance coverage is provided until the age of 55.
- Premium of PMJJBY policy is auto-debited from the bank account linked with the subscriber.
- This scheme is implemented through Life Insurance Corporation of India (LIC) and other participating private insurers.
- There is no medical examination involved at the time a participant enrolls under PMJJBY policy, except for late entrants who attempt to join after major initiative intervals.
Eligibility Criteria for PMJJBY Policy
The eligibility for PMJJBY policy is as below:
- Applicant age should be 18-50 years
- An active savings bank account is required of the applicant.
- The applicant must give approval for auto-debit of the premium sum.
- Should be primary KYC document for bank account → Aadhaar card
- An applicant should not already be registered under the same scheme in more accounts as per PMJJBY policy one policy is permitted to one person.
Premium and Sum Assured Details
The first is that the premium for PMJJBY policy is annual and this amount is auto-debited by banks from an account of the subscriber between 31 May to 1 June every year, as the policy period is from June 1 to May 31 of next calendar year. Here is the table containing the important details of the scheme:
| Particulars | Details |
| Scheme Name | Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) |
| Eligible Age | 18 to 50 years |
| Coverage up to Age | 55 years (subject to annual renewal) |
| Sum Assured | Rs. 2,00,000 |
| Annual Premium | Rs. 436 (subject to periodic revision by government) |
| Premium Payment Mode | Auto-debit from bank account |
| Policy Term | 1 year (renewable annually) |
| Risk Coverage | Death due to any reason |
| Administering Body | LIC and other participating insurers |
| Required Documents | Aadhaar card, bank account details, consent form |
| Enrollment Mode | Bank branch, net banking, or mobile banking app |
| Tax Benefit | Available under Section 80C |
This table provides a summarized view of the PMJJBY policy aimed at helping applicants get an overview of the scheme in no time.
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Benefits of PMJJBY Policy
Benefits of PMJJBY The Policy Advantages for the policyholders and their family:
- Low-Cost Premium: The premium for PMJJBY policy is one of the lowest among all insurance cover available and even paid by daily wage earners / low income families also.
- Comprehensive Coverage: While most private insurance, & does provide coverage from disease, does not cover death caused by accident. PMJJBY will provide coverage regardless of the cause as long as it can be covered with specific terms and conditions.
- Simple Enrollment: The PMJJBY policy requires only a simple enrollment process which you can complete through your bank branch, internet banking or mobile banking app with minimum documentation.
- No Medical Test: Joining the PMJJBY Policy is fairly easy for most subscribers as they are not required to complete a medical examination.
- Tax: You can get tax benefits on the premium paid for PMJJBY policy under Section 80C of the Income Tax Act.
- Financial Security for Family: PMJJBY will provide Rs. 2 lakh to the family of the policyholder in event of unfortunate death of such person which helps them meet immediate financial requirements.
How to Enroll in PMJJBY Policy
It is very simple to enroll in the PMJJBY policy:
- Go to your bank branch or login in your net/homeloan/mobile banking portal.
- Submit the consent-cum-declaration form for PMJJBY policy.
- Add your Aadhaar number for KYC verification.
- Allow auto-debit for the yearly premium from savings account.
- The bank will enroll you and verify your coverage after the application is submitted.
Besides, many banks offer customers an option of purchasing the PMJJBY policy through their mobile banking apps which further simplify the process in this digitalised age.
Claim Process Under PMJJBY Policy
If the policyholder dies, these are the steps that the nominee must follow to avail of this:
- Let the bank branch that had the account of policy holder deceased
- Complete the claim form and also provide the original death certificate.
- Submit a discharge receipt along with the nominee’s bank account information.
- Once issued the claim will be sent to the insurance company by the bank in order for processing.
- The confirmatory study is completed and the sum insured of Rs. 2 lakh gets directly credited to the bank account of the loved one.
This is one of the reasons that have helped PMJJBY policy easily gain faith among people where the claim settlement process for this scheme is quite fast and easy unlike most private insurance plans.
Exclusions and Limitations
The PMJJBY policy covers a broader amount, but there are certain facts that the policyholders should know:
- If the premium is not paid on time, coverage under the insurance plan will lapse for the PMJJBY policy (although this can usually be revived by paying the premium along with a declaration of good health).
- As it’s a pure term insurance product, there is no maturity or survival benefit available under the scheme.
- Also, you cannot take more than one PMJJBY policy from different banks as this goes against the rules of the scheme.
Wait period of 30 days from the date of recognition, in case a subscriber comes on board for the first time or after a lapse, before the risk cover kicks in – communication is excluded in instances of accidental death.
PMJJBY vs Other Government Insurance Schemes
PMJJBY is compared differentiating against similar government-backed schemes here.
| Feature | PMJJBY Policy | PMSBY (Suraksha Bima) |
| Type of Coverage | Life Insurance (any cause of death) | Accidental Death/Disability |
| Sum Assured | Rs. 2,00,000 | Rs. 2,00,000 (death), Rs. 1,00,000 (partial disability) |
| Annual Premium | Rs. 436 | Rs. 20 |
| Eligible Age | 18-50 years | 18-70 years |
| Renewal | Annual | Annual |
Here we can see the key difference that both these schemes are affordable but PMJJBY basically covers death due to any cause while PMSBY cover buys accidental death and disability factors only.
Why You Should Consider the PMJJBY Policy
The PMJJBY policy is an ideal choice for basic life insurance plan seekers who do not want to pay much. It is particularly beneficial for:
- Wage earners and job holders of the unorganized sector
- Sole proprietor and Private Company
- Farmers and agricultural workers
- Good for those in search of a simple, economical life insurance policy
Due to its cost-effective nature and easy accessibility, PMJJBY has remained an option for millions of Indians looking to secure their family’s financial future without being hit by any premium burden.
Conclusion
The PMJJBY policy is one of the first key initiatives launched by the GoI towards promoting financial inclusion. The scheme is simple, well cover and carry a marginal premium which have made life insurance available to millions of people without these protections before. Working as a salaried person, a small business owner, or even a daily wage worker, the PMJJBY policy provides you with an easy and affordable way to secure the future of your family financially. If you haven’t already opted in, it may very well be the smartest financial decision you make this year to visit your branch or check on your mobile banking app just for this scheme.
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Frequently Asked Questions
1. Who can apply for the PMJJBY policy?
The scheme can only be availed by the individuals [between 18 years to 50 year] having savings bank account with any bank as application will needs to fill in appear of his/her respective bank.
2. What is the sum assured under this scheme?
In case of the death of the policyholder due to any reason, a sum assured which is Rs. 2 lakh will be paid to the nominee.
3. What is the annual premium amount?
The annual premium is Rs. 436, which is debited automatically from the subscriber’s bank account and it should be noted that the government can revise this amount from time to time.
4. Can I hold this policy in more than one bank?
No, a maximum of one policy will be provided to a person under this scheme, even if he/she has accounts in other banks.
5. Is medical examination required for enrollment?
Those enrolling in the first period need no medical exam, while later entries may submit a declaration of good health.
6. What happens if I miss paying the premium?
The coverage will automatically lapse if the premium is not furnished. It can generally be reinstated upon payment of premium and completion of a statement of good health, at the company’s discretion.
