- About Coverfox
Pradhan Mantri Jeevan Jyoti Bima Yojana is a term insurance plan launched by Government of India. The first mention of this scheme took place in the budget speech given by Finance Minister Arun Jaitley in February 2015. The plan was nationally launched in Kolkata on 9th May, 2015 by Prime Minister Narendra Modi.
The aim of the plan is to give financial security for the poor and underprivileged on the loss of a family member especially the breadwinner. The life cover starts from 1st June of every year until 31st May of the next year and can be renewed year after year.
Death Benefit: The plan gives a very important death benefit coverage of INR 2,00,000 on the death of the policyholder due to any reasons.
Maturity Benefit: This a pure term insurance plan covering only death benefit and hence there is no maturity benefit available.
Risk Coverage: Pradhan Mantri Jeevan Jyoti Bima Yojana plan covers all the risks to life. The death benefit amount is given to the nominee of the policyholder on the occurrence of death due to any reasons after the 45 days of the cooling period clause. If death occurs due to an accident then the cooling period clause is not applied and the death benefit amount is given to the nominee.
Tax Benefit: Tax benefit can be availed on the premium paid under this policy under section 80 c of the Income Tax Act.
Pradhan Mantri Jeevan Jyoti Bima Yojana is a great initiative by the Government of India, especially for the underprivileged and poor citizens. The plan provides a financial and social security for the family and gives them comfort and assurance on the death of a family member. The death benefit will give some cushion and time to the family to figure out the alternate source of income if the breadwinner dies suddenly. The scheme is a good step to ensure back up for the low-income groups and helps them to fight any adversities.