Everything you need to know about Pradhan Mantri Jeevan Jyoti Bima Yojana

As we all know, having life insurance is quite essential for an earning individual as it helps to have financial protection for one’s family. Therefore, understanding the importance of life insurance, Prime Minister of India, Narendra Modi has launched Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY). PMJJBY scheme offers term life insurance at quite affordable premiums. In this article, you would find everything that you need to know about PMJJBY.

So, what is PMJJBY? PMJJBY is a life insurance scheme that provides a one-year renewable term life insurance cover of Rs 2 lakh.

Features of PMJJBY

- PMJJY offers pure term insurance cover. This means that, if in case you die during the term of the plan, the sum assured of Rs 2 lakh would be paid to your family. However, if you survive the tenure of one-year then, no maturity benefit is paid.

- The plan can be renewed every year till you reach the maximum coverage age of 55 years.

- The coverage starts from June 1 every year and continues till May 31 of the following year. Though you can buy the plan even after June 1, the coverage would cease on May 31.

- Moreover, even if you buy the plan mid-way, you would have to pay the premium for the full year.

- This plan also covers accidental deaths from day 1 of the policy.

- In case of death due to an illness, the waiting period of 45 days is applicable from the date when you buy the policy. No claim would be paid if death occurs due to illness during the waiting period.

- This plan can be bought via your bank account.

- Premiums would get deducted from your bank account through an auto-debit facility. Hence, in order to get the coverage, you need to opt for the auto-debit facility in your bank account.

Eligibility criteria

- You should have a savings bank account.

-Even the joint account holder(s) can apply for the scheme.

- At the time of availing of this scheme, the applicant should be between the age group of 18 to 55 years as the insured will be eligible for the coverage up to a maximum age of 55 years.

Premium amount

PMJJBY is quite an affordable life insurance scheme. The premium for one-year coverage is just Rs 330. You need to pay this amount directly via the auto-debit facility of your bank account.

How to claim this scheme?

- Post the death of the insured, the nominee should intimate the bank about his or her death.

- Further, the nominee is required to fill up a claim form and a discharge receipt in order to receive the claim and the same needs to be submitted to the bank from where the scheme was bought.

- The bank then verifies the claim and post verification, it sends the claim form and related documents to the insurance company that provides insurance coverage.

- Also, the insurance company would verify the claim at its end and check the authenticity of the submitted documents.

- Finally, if the insurance company is satisfied with the authenticity of the claim, the claim amount is directly credited to the bank account of the nominee.