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Pradhan Mantri Jeevan Jyoti Bima Yojana

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.

Features of Pradhan Mantri Jeevan Jyoti Bima Yojana

  • The plan gives life coverage for a period of 1 year with renewable option every year.
  • The plan gives a life cover of INR 2 lakhs for a nominal premium of INR 330 per annum.
  • There is no maturity benefit in this plan as it is a pure term insurance covering life risk.
  • Risk cover starts after 45 days of enrolment, but on death due to accident, the sum assured will be paid.
  • Plan can be purchased through participating banks having tie-ups with LIC and other private insurance companies in India.
  • Policyholder needs to have a savings bank account to get enrolled in this scheme.
  • It is a government backed term insurance plan making claim settlement easy and trustworthy.
  • It is easy to re-join the scheme if one has withdrawn from the scheme before for any reason.
  • The scheme is simple to understand and does not have any complications.

Benefits of Pradhan Mantri Jeevan Jyoti Bima Yojana

  • 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.

Eligibility of Pradhan Mantri Jeevan Jyoti Bima Yojana

Minimum entry age18
Maximum entry age50
Maximum coverage age55
Policy term1 year
Compulsory bank accountYes
Coverage period1st June to 31st May
Sum assuredINR 2,00,000

Other Details of Pradhan Mantri Jeevan Jyoti Bima Yojana

  • There is a 45 days cooling off period in this plan after which the coverage starts. However, accident cases are exempt from this cooling off period clause
  • The plan will get automatically terminated on closure of the bank account
  • The plan is limited to only one policy - per policyholder, irrespective of a person having multiple bank savings account offering the scheme.
  • The premium will be deducted from the bank account of the policyholder between May 25 and May 31 every year
  • If the insurance cover gets terminated due to any reasons it can be reinstated by paying the full premium and giving a proof of good health

Review of Pradhan Mantri Jeevan Jyoti Bima Yojana

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.

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