Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)

An Indian life insurance scheme, PMJJBY, first talked about in the February 2015 budget speech delivered by Arun Jaitley, the finance minister. Formally introduced in Kolkata on 9th may, by the prime minister, Narendra Modi, this scheme aims to increase the number of Indian citizens availing insurance.

Pradhan Mantri Jeevan Jyoti Bima Yojana can be availed by citizens aged between 18 to 50 years, bank accounts being a must. Excluding the service tax, the annual premium amounts to Rs. 330 and this amount automatically gets debited from the account of the nominee. In cases of death, the nominee is paid Rs. 2 lakh. The sum of Rs. 330 is the premium cash amount, out of which Rs. 289 is the annual insurance premium, chargeable to each member of Life Insurance Corporation of India. The amount of Rs.30 is paid by the subscribers as refunds to the various Corporate, BC, and Agents expenditures. Lastly, the sum of Rs.11 is to be paid for the various Administrative Reimbursement Expenses.

Eligibility criteria for the Bima Yojana:            

  • The person to be linked with this Bima Yojana should be aged between 18-50 years.
  • The subscriber must have a functioning bank account with any bank in India.
  • A written consent should be given stating that the amount can be debited automatically from the respective savings account and also that there should be the minimum balance at the time of the debit.
  • Those joining the scheme after its last date are to pay the complete premium and a fitness certificate.
  • The person should make a declaration that he/she is not suffering from any medical condition, when getting them registered to the Yojana.

How to apply for PMJJBY:

  • Interested people have to download the application form.
  • The printed version of the application form is to be filled.
  • The filled form has to then be submitted at the respective bank branch.
  • There should be enough balance in the bank account during the process.

Benefits of PMJJBY:

  • Enrolment: The commencement date of the insurance cover is the same as the date of the premium debit from the member’s account and the cover will last up to the 31st May of the next year. It can be renewed on the 1st June every year simply by debiting the premium amount to the account.
  • Death benefit: In unfortunate cases of death, the assured sum would be paid to the member within the cover period. In any case, it cannot exceed Rs. 2 lakhs.
  • Tax benefits: These benefits are as per the income tax laws of India, and are also subject to change frequently.

During any such policy, one should always be aware of the various risk factors and also all the terms and conditions. Therefore complete knowledge about the subject is very important. Only then will the right step be taken and therefore be a part of the global change brought about by an initiative by our prime minister.

For more government yojanas, visit http://govyojana.in/

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