Pradhan Mantri Jeevan Jyoti Bima Yojana – A Beneficial Life Insurance Policy!
An insurance plan known as the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) provides coverage in the event of death or incapacity for any cause. This is a yearly insurance contract that lasts for one year. The program is provided by LIC and other life insurance firms that are ready to provide the product on comparable conditions with the required approvals and tie-ups with banks and post offices. Everyone with a personal account at a partnering bank or post office between the ages of 18 and 50 years is eligible to enroll. The primary document that is required for the registration purpose is Aadhaar Card.
Key Features of the Jeevan Jyoti Bima Yojana
Here we have listed some of the key features of the PM JJBY Policy:
This insurance policy provides a policyholder insurance coverage of Up to Rs 2 lakhs in case of the unfortunate death of the nominee. The insurance amount comes with tax exemptions. This insurance policy provides a hassle-free & easy claim procedure.
The PMJJBY policy offers an insurance facility at a minimal cost of a premium of Rs 330 yearly. This policy is a profitable scheme of investment for people with low salaries. The premium price of the policy will be the same for all the policyholders of age between 18 to 50 years.
Mode of Payment
The bank auto-withdraws the premium amount from the policyholder’s saving account. The individuals can apply for the renewal of the policy between 25th May to 31st May. If in case the policyholder wants to discontinue this policy, then he or she will have to submit a cancellation request to stop the deduction of the premium amount.
After you sign the agreement, you are covered by the PMJJBY Policy for a year. The insured individual can renew the policy each year as a form of term life insurance up until the age of 55. A health certificate and the policy premium must be submitted if the covered individual subsequently decides to join the program.
Term of Enrolment
Between June 1 and May 31 of the following year, PMJJY’s registration period runs. The enrolment phase requires subscribers to enroll and provide their approval to auto-debt. After June 30th, everyone who wishes to get insurance must pay the whole policy year’s premium in one single amount starting in the month of joining.
The premium paid to the program met the requirements for a tax exemption by the income tax laws, which are subject to change. Getting advice is crucial if you want to save money.
Advantages of the PMJJBY Policy
Three social security programs, including the Pradhan Mantri Suraksha Bima Yojana, Atal Pension Yojana, and the PMJJBY, were introduced by Prime Minister Narendra Modi. The PMJJBY, launched by the Indian Central Government, provides life insurance coverage to low-income & underprivileged groups of society. The highest insured sum under the plan is Rs. 2 lakhs.
Here we have listed the major benefits:
Premiums are affordable: The PMJJBY insurance has a starting premium of Rs. 330, which is thereafter reduced dependent on the month of enrolment. In an auto-debit transaction, the payment is taken right away from the linked bank account.
Tax Relaxation: Under the Income Tax Act of 1961 Section 80C permits tax deductions for contributions made to this plan.
Death Coverage: In the event of the policyholder’s untimely death while the policy is in effect, the insurer will pay the nominee the whole sum assured. An individual will receive insurance coverage up to Rs 2 lakhs under this policy. The maximum insurance coverage amount can’t be exceeded in any case, even though the policyholder obtained the coverage from numerous insurance firms or savings bank accounts. In this case, the nominee or stakeholder will receive the first application’s death benefit cost. If they want to buy this coverage, they must open an account.
A medical certificate serving as proof of good health is required from anybody obtaining this coverage after 30th November 2015.
Assured Sum: Regardless of the cause of the policyholder’s death, the inexpensive term insurance plan provides death payments of up to Rs. 2 Lakh.
Any risk Insurance coverage: This plan includes coverage for all potential hazards. After 45 days from the date of death, all death benefits will be paid. If the policyholder dies in an accident, the death benefit is given to the beneficiaries right away, without any kind of waiting period.
Motives for Purchasing This Plan
- Any individual resident of India whose age lies between 18 years to 50 years may acquire this life insurance coverage provided they have a saving account.
- PMJJBY renewal may be done once a year, and it’s easy & quite fast.
- The insurance claims process is simple.
- Coverage for an amount up to Rs. 2 Lakh is available for just Rs. 330 in yearly premiums.
- You may still sign up for the PMJJBY if you missed the first year by paying an annual subscription fee. An affirmation of good health made on one’s behalf should be given at that point.
PMJJBY Eligibility Requirements
- Any person between the ages of 18 and 50 may acquire this coverage.
- Up until the life guaranteed reaches the age of 55, the insurance will cover him or her.
- The insurance buyer must have a savings account with a partnering bank to acquire this policy.
- If they want to acquire this policy, policy purchasers must link their bank account to their Aadhar Card.
If a person purchases this insurance after 30th Nov 2015, they will need a medical certificate as evidence of their health.
Banks that offer PMJJBY Policy
List of Financial Institutions that Provide PMJJBY Plan:
The Indian government has introduced the PMJJBY policy, a new group term insurance program, to help the less fortunate members of society who cannot afford life insurance policies. The plan only protects against mortality because it is a term insurance plan. In May 2015, it was discovered that just 20% of people had insurance plans. Increased insurance penetration in India is the goal of the PMJJBY.
By collaborating with LIC or another life insurance provider, banks that want to provide the PMJJBY Policy can do so. The master policyholder’s premium will be paid to the bank on or before the due date, and the bank will subsequently transfer the money to the insurance provider. The authorization document for auto-debits, the permission cum declaration form, and the enrolment form will all be kept by the bank. The aforementioned papers are subject to request by the insurance company at any time.
Several banks around the nation offer the PMJJBY. The following banks provide the PMJJBY:
Union Bank of India
Punjab National Bank
State Bank of India
ICICI Bank Ltd
Kotak Mahindra Bank Ltd.
HDFC Bank Ltd
Central Bank of India
Bank of Maharashtra
How Do I Join the PMJJBY Program?
With the aid of an insurance firm, you may sign up for a PMJJBY program. Public life insurance providers having ties to banks, such as (LIC) Life Insurance Corporation of India, or other general insurance providers would be the ones to provide the program. On June 1st, 2015, PMJJBY plans are anticipated to go into force. To execute this program for its stakeholders, participating banks may choose to list any life insurance business.
What is covered under the PMJJBY Policy?
All life hazards are covered under the PMJJBY plan. All death benefits will be handed out after 45 days have passed since the death. Every year from June 1 to 31st May of the following year, the coverage period is in effect. However, a death certificate must be submitted to receive compensation under the PMJJBY in the event of the policyholder’s natural or unavoidable death. When claiming benefits, you must preserve the website-downloaded PMJJBY insurance certificate. In the upcoming years, the program is accessible to new qualifying aspirants.
Cases that are not covered under the PMJJBY Policy?
For eligibility under the PMJJBY Policy, there are a few requirements:
- The death benefit provided by the insurance will be canceled if the person is above 55.
- You are not eligible to collect the death benefits if the member has coverage through more than one bank account.
- The policy will be cancelled if the policyholder does not have enough money in their savings account to maintain the insurance in effect.
- There won’t be any particular exclusions for this plan if all of these requirements are met. However, if the cause of death is a suicide, you cannot file an insurance claim.
Cancellation of insurance coverage
On the earliest occurrence of the following circumstances, the insurance coverage will end:
- the date the member reaches 55, on the yearly renewal date
- After the member’s passing
- On premiums that are not paid after the grace period
- Account closure with the bank or insufficient funds to maintain the policy’s coverage on the date that, if the member had coverage via more than one bank or had several savings accounts with the same bank, another insurance provider satisfied the member’s claim.
Application Procedure of PMJJBY Policy
The LIC & other Indian life insurance firms both provide the PMJJBY Policy. PMJJBY enrolment is available at various banks’ branches. Regardless of how many bank accounts you have, you may register for this plan with only one. The plan may be extended annually, with all members’ renewal dates remaining on June 1. If for whatever reason you decide to leave the plan, you may re-enter by paying the yearly premium.
Steps to follow:
- www.jansuraksha.gov.in/Forms-PMJJBY.aspx is the authorised website where you may get the PMJJBY application form. Choose the language that is most comfortable for you, from the several that are offered for the form.
- Send your bank the filled-out application form.
- provide the necessary documents.
- Following verification, you can effectively be registered under the plan.
- An SMS-based enrolment option is also offered by the majority of banks. Before moving forward with the application, inquire with your bank for further details.
How to settle the claim for PMJJBY Policy?
The PMJJBY has a very straightforward and efficient claim resolution procedure. Here are a few simple steps a receiver should follow when submitting a claim.
Actions Taken by Nominee
- Step 1: If the insured person passes away as a consequence of an unfortunate event, the beneficiary must visit the policyholder’s bank. The plan’s linked savings account of the policyholder must be accessed by the recipient at the same bank. The receiver will be asked by the bank to present the insured person’s death certificate.
- The second step is for the nominee to obtain the claim form from the insurance provider or bank.
- Step 3: After receiving the claim form, the receiver must carefully fill the form and send it with any necessary supporting documentation, including a discharge receipt, death certificate, stakeholder’s bank detail, the nominee’s bank account information, & a photocopy of a cancelled check.
Steps that the bank will have to follow:
- When the insurance firm receives the necessary paperwork and the claim form from the bank, it also checks the files.
- After the claim has been verified, Step 2 involves transferring the claim money to the nominee’s bank account.
- The insurance provider has 30 days to review and accept the claim once it is submitted before having to pay it.
Actions are taken by the Bank
- The claim must be submitted by the recipient with all the supporting documentation. The bank examines the paperwork and applications.
- After verification, the bank sends the following papers to the chosen insurance provider.
- discharge receipt
- claim form that has been correctly filled out
- a death record
- duplicated beneficiary’s cheque cancellation
A highly advantageous life insurance program that offers financial stability to the family and life guaranteed is the PMJJBY, which is supported by the Central government. The enrollment process is fairly easy and may be completed in any of the partnering banks that provide the PMJJBY. The plan is readily available.
FAQ SECTION FOR PMJJBY Policy
What is the role of the PMJJY Policy?
The PMJJBY Policy is designed to offer medical insurance to those who perfectly match the eligibility criteria. This policy helps poor people to get life insurance coverage upto Rs 2 lakhs.
Who will be qualified for this program?
Anyone with a personal (joint or single) bank account at a member bank who is between the ages of 18 and 50 is eligible to enroll. A person may only join the program through one bank account if they have several bank accounts with the same or other banks.
What are the major advantages of the PMJJBY Policy?
An individual with a savings account in a respective bank can get life insurance coverage up to Rs 2 lakhs. It is offered for the premium cost of Rs 330 yearly. This insurance policy will be valid for 1 year and will get renewed after every year.
Is natural death covered under PMJJBY?
Natural disasters are accidents, hence any disability or death (as those terms are defined in PMSBY) they cause are likewise covered by PMSBY.
What is the age limit to apply for the PMJJBY Policy?
The age limit to apply for the PMJJBY Policy is between 18 to 70 years.