Pradhan Mantri Jeevan Jyoti Bima Yojana-India’s most affordable Term Life Insurance
In today’s complexed world, insurance is an utmost need for everyone be it life insurance or health insurance. But unfortunately, the majority of Indians are either not insured or insured but not adequately insured.
Having a term life insurance and health insurance policy is a part of basic financial needs. No one should argue on this and has to accept reality.
In this post, I would discuss in detail India’s most affordable Term Life insurance policy Pradhan Mantri Jeevan Jyoti Bima Yojana(PMJJBY)
endorsed by the Government of India and administered by the Life Insurance Corporation of India(LICI).
This post would help you in understanding what PMJJBY actually is, the benefits of opting for PMJJBY and the simple process to opt for this most affordable life insurance policy PMJYBY step by step in a very simple and lucid manner.
What is Pradhan Mantri Jeevan Jyoti Bima Yojana?/What is PMJJBY?
Pradhan Mantri Jeevan Jyoti Bima Yojana(PMJJBY) is the most affordable flagship term life insurance product backed by the Government of India and administered by the LICI.
To make life insurance more affordable, the Government of India has tried to keep the premium cost as low as possible. So that even the people of the marginal section of our society can make them insured under this PMJJBY scheme.
Is Jeevan Jyoti Bima Yojana India’s cheapest Term Insurance?
Yes, the Pradhan Mantri Jeevan Jyoti Bima Yojana is popularly known as PMJYY. This PMJYBY is considered India’s cheapest and most affordable term life insurance policy with a premium amount as low as ₹330/- annually.
To be able to take advantage of this affordable insurance policy a policy-holder must be within the age group of 18 to 50 years. Also, one must have an operative Bank account through which the policy will be issued and the premium payment would be made.
As the Bank accounts are supposed to be AADHAR linked, so your Aadhar number would be treated as the primary KYC for issuance of this policy in your name.
By paying a mere amount of ₹330/- per year, one can avail of the life risk coverage for ₹2 Lakh per year. Though this life risk coverage does not seem to be adequate, but it has been ensured by the Government that people of every corner take advantage and be insured for a minimum amount of ₹2 Lakh.
Since, this a term life insurance, the premium is paid annually every year and also the life risk coverage of Rs. 2 Lakh is for a single year only.
It has to be renewed every year and the period of coverage is from 1st June to 31st May every year. The sum insured amount is payable to the nominee of the insured on the unfortunate demise of the insured person only.
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This means there’s no survival benefit under this Jeevan Jyoti Bima Yojana Scheme. This is different from the traditional life insurance policy where after the maturity period the insured person would get back some portion of the premium paid by him during the policy term.
What are the key features of Jeevan Jyoti Bima Yojana?
There are some key features of the PMJJBY, which make this term life insurance a unique one.
- This is a Government promoted and LICI managed term life insurance policy and also offered by other life insurers on the same terms and conditions;
- Life insurers willing to offer this product has to make a tie-up with various banks for receiving premium payment;
- A subscriber must have a bank account to buy this term life insurance policy;
- Most affordable and easy accessible term life insurance available in India right now;
- The annual premium is as low as ₹330/- per year;
- Sum assured or life risk coverage is ₹2 Lakh only in a year;
- The Aadhar card acts as the primary KYC for the bank account holders;
- The premium amount is auto-debited from the subscriber’s bank account within 31st May of every year as per the instruction given by him;
- The risk coverage is being done for the period 1st June to 31st May each year;
- This policy does not offer any survival benefit to the insured person;
- Sum assured is paid to the nominee on death of the policy-holder only by any reasons what so ever;
- This policy gets terminated automatically on attaining the age of 55 years by the insured person.
Who is eligible for Pradhan Mantri Jyoti Bima Yojana(PMJJBY)?
Indian citizens having age between 18 years to 50 years are eligible to buy this term life insurance policy. Further, a person aged more than 55 years are not eligible to opt for this affordable life insurance policy.
Following are the eligibility criteria for PMJJBY:
- Age: Minimum entry age 18 years and maximum entry age 50 years;
- Maximum coverage: Life insurance coverage is provided up to a maximum of 55 years of age. After that, the policy would be terminated automatically;
- Bank account: Since there is no other option for payment of premium except auto-debit from the savings bank account, a subscriber must have an operative savings account;
- Consent form: A subscriber must submit his consent to the respective banks for the auto-debit mandate of the annual premium every year.
Pradhan Mantri Jeevan Jyoti Bima Yojana(PMJJBY) Benefits?
- PMJJBY is a term life insurance policy renewed every year;
- The life risk coverage is a maximum of ₹2 Lakh per year;
- The premium amount is very affordable i.e. ₹330/– per year;
- World’s cheapest term life insurance policy;
- Generally, there is a cooling period of 45 days. However, if there is a death of the insured person due to an accident, the sum assured amount will be paid immediately.