The Modi government recently launched a new life insurance policy named as – Pradhan Mantri Jeevan Jyoti Bima Yojna or popularly known as PMJJBY. This is considered one of the best initiatives by the Central Government including Demonetization.
Main features of Pradhan Mantri Jeevan Jyoti Bima Yojna are:
- The premium rate is the most affordable one with just INR 330 per annum
- Life Insurance Sum Assured is INR 2 lacs
- The policyholder can renew with INR 330 every year for Insurance cover of INR 2 lacs
- The eligibility criteria is that the policyholder should be between 18 to 50 years of age
- The policy gets terminated in case
- If the age of policyholder is greater than 55 years
- The policyholder has insured himself under the same scheme from his different bank accounts
- In case, the bank account does not have sufficient balance to keep the policy running.
Benefits of buying Pradhan Mantri Jeevan Jyoti Bima Yojna
Top 4 benefits from PMJJBY are:
- Coverage Period – The policyholder gets covered for full one year once he pays the premium amount
- Tax Savings – The amount paid for premium becomes eligible for tax deduction under section 80C of Income tax act.
- Death Benefit – If the life of the policyholder is lost, the nominee gets sum assured of INR 2 Lacs
- Maturity Amount – There is zero amount of maturity. This means the policy is a pure term insurance policy.
How to buy Pradhan Mantri Jeevan Jyoti Bima Yojna?
One can buy the PMJJBY policy simply by linking the Adhaar no registered with the Bank Account. You may log on to buy the policy from any of the registered life insurance company and purchase the policy. There are 2 instant benefits associated here – Firstly, The issuance of the policy is fast and quick. Secondly, there is no need for any medical tests. One’s self-declaration is self-sufficient to become eligible for the health perspective for this plan. One should also note that new members are not covered for the first 45 years of the purchase of the plan. The premium amount INR 331 is inclusive of INR 41 taken towards administrative costs incurred by the banks.
Concluding, since the independence of our nation, this is a brilliant step taken by the government of India in order to insure everyone’s life. The key point here being – all lives from all income groups, all casts and religions and regions are precious for our country!