An insurance program called Pradhan Mantri Jeevan Jyoti Beema Yojna was created especially for poor households in India. This coverage is available to any Indian citizen between the ages of 18 and 50 who has an open savings account. In the year 2015, it was introduced. At an affordable rate of Rs. 330 per year, PMJJBY provides life insurance with a 2 lakh rupee coverage. It is an annual renewable insurance plan, and the connected bank account will automatically be deducted from the premiums.
Along with two additional insurance programs, Pradhan Mantri Suraksha Beema Yojana and Atal Pension Yojana, Jeevan Jyoti Beema Yojana was introduced with the goal of speeding insurance penetration in India and meeting the demands of the general public.
How does it function?
An impoverished family shouldn’t disintegrate in the event that the main provider dies. The PMJJBY policy was developed and established with this in intellect. It strives to give poor individuals financial security, and the minimal requirement is maintained as an active savings account. If they have an open savings account, anyone who is at least 18 years old and is under 50 can purchase this life insurance coverage.
The policy inheritors will acquire a death benefit of Rs. 2 lahks upon the insured’s extinction. People can leave the program at any moment and rejoin it later. Participating banks will hold the scheme’s master policy.
Motives to Purchase This Plan
- If they have an open savings account, any Indian citizen over the age of 18 and under 50 can purchase this life insurance coverage.
- PMJJBY renewal can be completed yearly and is simple and quick.
- The procedure for settling insurance claims is easy.
- The annual premiums start at just Rs. 330 and provide coverage up to Rs. 2 lakh.
- If you didn’t sign up in the first year, you can still join the PMJJBY by making annual premium payments in the ensuing years. At that time, a self-certification of good health must be provided.
Benefits
See the advantages of the Pradhan Mantri Jeevan Jyoti Beema Yojana listed below to comprehend why everyone ought to sign up for one.
- Affordable Premiums: The PMJJBY policy’s base premium is Rs. 330, and it decreases later depending on the month of enrolment. The sum is automatically debited in this manner from the linked bank account.
- Sum Assured: The affordable term insurance policies offers death advantages of up to Rs. 2 Lakhs Regardless of cause of death, the policyholder passed away..
- Tax Benefit: Section 80C of the Income Tax Act of 1961 permits taxation lessenings for donations made to this plan.
- All vitality perils are protected by this plan’s risk coverage. After 45 days following the death, all death benefits will be paid. If the policyholder dies in an accident, there is no waiting time and the death benefit is given to the beneficiaries right away.
Conclusion
The Government of India launched the Pradhan Mantri Jeevan Jyoti Beema Yojna to give impoverished and disadvantaged families across the nation financial and medical protection. As a result, the family can spend the death benefit from the insurance they got up until the creation of a backup income source. Additionally, this plan will give low-income families in society a final resort in the event of a breadwinner’s absence and assist them in leading stable lives.
