Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY): Benefits, Eligibility, Features & Coverage
Term insurance provides several benefits to policyholders when they want to get coverage for illnesses. However, most people who live in rural areas of India don’t know about them due to the lack of knowledge and other factors. As a result, the Government of India aims to introduce special policies to reduce the financial burden. The Pradhan Mantri Jeevan Jyoti Bima Yojana is one among them that offers coverage at very low prices. In addition, it gives ways to get financial security when the primary earner of a family dies due to health ailments and other things.
Uncertainties can happen anytime in a person’s life, and he/she should focus more on how to protect his/her family from financial troubles. Since several insurance policies are available in the market today, it becomes challenging to pick the best one among them easily. PMJJBY term insurance plan is mainly designed for poor people who want to get protection against unforeseen events in life. The insurance offers coverage of Rs. 2 lakhs to a nominee during the absence of a policyholder to ensure peace of mind.
What are the features of PMJJBY?
It is wise to know more about the insurance plan features from different sources that will gain more ideas. Some of the key features offered by the policy include:
- Immediate coverage for accidental death: The coverage begins 45 days after enrollment and provides immediate coverage for accidental death to prevent financial crunches.
- Covers Life Risks: Buying this insurance plan allows policyholders to get protection against risks in life such as accidental death and illness death. However, since it is purely a term insurance plan, the policy doesn’t cover any maturity benefits.
- Low Premium: The primary advantage of the PMJJBY scheme is that the premium amounts are very low when compared to other plans in the markets. A policy buyer has to pay only Rs. 330 in 4 quarters for this plan, and the premium amount will decrease after that.
- Allows people to buy a policy from any partnered banks: A person can buy a policy from any partnered banks in India that have tie-ups with LIC and other insurance companies in India.
What are the eligibility criteria to join this scheme?
- The minimum entry to join this scheme is 18 years
- The maximum age to join this policy is 50 years
- Policy buyers should have a valid bank account while buying the plan
- The coverage period starts from June 1 every year and ends on May 31 of the following year
Things to know more about PMJJBY insurance plan
- The policy is available for only one person in a year, irrespective of multiple bank accounts.
- The plan will get terminated when a policyholder closes the linked bank account to it.
- A person can rejoin the insurance plan by paying a full premium amount and proof of good health after the termination process.
- The insurance plan will become inoperative when a policyholder attains 55 years.
Also Read: PMSBY Scheme Benefits & Features
Top 6 Reasons to choose PMJJBY Insurance Plan
- Protection from financial obstacles: Life is full of uncertainties, and the sudden loss of an earning member in a family can lead to various problems. Having a term insurance plan will help get coverage for death caused by accidents and other reasons.
- Premium Reduction: The policy will reduce the premium amounts based on the month of enrollment, thereby showing ways to save more money.
- Tax Deductions: After choosing the plan, policy buyers can claim tax deductions under section 80 C of the income tax, 1961, after selecting the plan.
- Provides financial support to economically weaker sections: The primary advantage of buying the Pradhan Mantri Jeevan Jyoti Yojana is that it provides financial support to financially vulnerable sections of society. Those who live in rural areas of India can benefit a lot from the plan.
- Renewal Option: Although the duration of the policy is one year, customers can renew the same to get the same benefits.
- Easy Claim Process: The claim process offered by the scheme is very simple, and policyholders can follow it without any difficulties.
How to enroll for the Pradhan Mantri Jeevan Jyoti Yojana scheme?
- Anyone who wants to enroll in the scheme should know the details of banks that offer the facility in India. Moreover, they can visit the nearby LIC office or any other life insurance company to gather more information about the policy.
- One can enroll their name in the name after linking the plan to his/her savings bank account. If policy buyers have multiple accounts, they are eligible to choose only one account during the enrollment process.
- Policy buyers can visit the official PMJJBY policy to find complete details that will make the enrollment a simple one.
- The next step is to download the PMJJBY form from the website after following the instructions.
- Customers should submit the form in a bank where it tie-ups with LIC or other insurance companies. They should fill in the details before the submission process.
- A policy buyer should know whether they should submit documents during the submission process with a bank.
How to claim amounts under the PMJJBY scheme?
Nominees should know how to claim amounts when an insured person passes away due to accidents or other factors. They should submit the following documents when it comes to a claim process.
- Proof of death of the insured member
- Aadhar number and PAN number of deceased and nominee
- KYC documents in respect of the nominee
- Legal heir certificate
- First two pages of the bank passbook or post office account
- Advanced receipt for discharge of claim duly filled in and signed
While choosing the PMJJBY scheme, one should understand the policy details and other things that will help gain more advantages. For example, it is a perfect choice for rural area people to get high protection from financial loss caused by an accident or illness. The plan also gives ways to pay low premium amounts to reduce unwanted problems in life.