Pradhan Mantri Jeevan Jyoti Bima Yojana, Features, Benefits

Pradhan Mantri Jeevan Jyoti Bima Yojana

Pradhan Mantri Jeevan Jyoti Bima Yojana: On May 9, 2015, Prime Minister Narendra Modi introduced the Pradhan Mantri Jeevan Jyoti Bima Yojana in Kolkata. The Indian Finance Minister Arun Jaitley first mentioned this life insurance programme in his 2015 Budget Sheet. The Life Insurance Corporation of India is responsible for implementing the Pradhan Mantri Jeevan Jyoti Bima Yojana.

Pradhan Mantri Jeevan Jyoti Bima Yojana Overview

PMJJBY, or the Pradhan Mantri Jeevan Jyoti Bima Yojana, is a programme that provides death insurance. PMJJBY finished 8 years of social security provision in May 2023. In the event that an insured person passes away, this programme covers impoverished and vulnerable family groups and offers them financial support up until a new source of income is established for the family. Check the overview of the scheme below in the table:

Feature of Pradhan Mantri Jeevan Jyoti Bima Yojana

The following is a list of some of the Pradhan Mantri Jeevan Jyoti Bima Yojana’s key characteristics.

• Renewal is Easy: The policy gives life insurance for a year and can be renewed annually.
• Better Insurance Coverage: The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) policy offers life insurance coverage of 2 lakh rupees for 330 rupees in yearly premiums.
• No Maturity rewards: Since the policy is a term insurance plan, only life risks are covered, and maturity rewards cannot be redeemed.
• Mandatory Savings Bank Account: In order to use this plan, the policyholder must have a savings bank account, which can be opened at any partner Indian bank that has a contract with the LIC and other private insurance companies.
• Hassle-free Procedures: Life insurance coverage takes effect 45 days after enrollment. However, the whole amount pledged will be paid in the event of a fatal accident. If the policyholder decides to leave the programme for any reason, they can easily re-join it.
• PMJJBY Premium: Depending on the option chosen, the premium will be deducted from the account holder’s savings bank account using the “auto debit” feature on or before the 31st May of each annual coverage period under the programme.

Benefits of Pradhan Mantri Jeevan Jyoti Bima Yojana

PM Narendra Modi introduced three social security programmes, including the Atal Pension Yojana, the Pradhan Mantri Suraksha Bima Yojana, and the Pradhan Mantri Jeevan Jyoti Bima Yojana. The Central Government of India introduced the Pradhan Mantri Jeevan Jyoti Bima Yojana, which offers life insurance to the underprivileged and low-income group in society. A maximum assured value of Rs. 2 lakhs is provided by the programme.

• Tax benefits: Section 80C of the Income Tax Act of 1961 applies to investments made under the Pradhan Mantri Jeevan Jyoti Bima Yojana scheme. These laws could, however, be altered.
• Benefit of risk coverage: This plan covers all potential risks to life. In the event that the policyholder passes away for any reason, the death benefits are paid to the beneficiaries of the policy.
• After Death Benefits: The Pradhan Mantri Jeevan Jyoti Bima Yojana pays a death benefit of up to 2 lakh INR in the event that a policyholder passes away.
• Benefit of Extendable Tenure: It offers security for a year. The policyholder can, however, choose to extend the tenure duration until age 55.

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