• Pradhan Mantri Jeevan Jyoti Bima Yojana

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    Life Insurance
    • Premiums as low as Rs.17/day for sum assured of Rs.1 crore*
    • Claim up to Rs. 1,50,000 deduction under section 80C**
    • Choose between annual and monthly premium payment options
    By Kavya Balaji | 25 Aug 2019

    The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a non-participating, non-linked, yearly renewable, term insurance scheme, which offers a risk cover against death on the life of the policy buyer. This term insurance policy is backed by the Central Government of India, and is administered by the Life Insurance Corporation of India (LIC) and also private-sector life insurance companies. Since this is a pure term insurance plan, the policy only offers a death benefit if the life assured passes away during the policy tenure. No benefit/payout is offered at maturity of the policy. Read on to know more about the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) scheme.

    Eligibility Criteria for the Pradhan Mantri Jeevan Jyoti Bima Yojana Scheme

    • This policy can be purchased by any individual between 18 years and 50 years of age.
    • The policy will provide coverage to the life assured until he/she attains the age of 55 years.
    • In order to purchase this policy, the policy buyer will need to have a savings bank account with a participating bank.
    • Policy buyers will need to link their Aadhaar to their bank account if they wish to purchase this policy.
    • If an individual is purchasing this policy after 30 November 2015, he/she will need to provide a medical certificate as proof of good health.

    Benefits of the Pradhan Mantri Jeevan Jyoti Bima Yojana

    • Death Benefit: In case of the policyholder’s untimely death during the policy tenure, the insurer will pay the full sum assured to the nominee. The maximum amount that one can receive as the death benefit under the PMJJBY scheme is Rs.2 lakh. Even if the policyholder has purchased the policy through multiple insurance companies or has availed the policy through multiple savings bank accounts, the maximum amount payable will not be over Rs.2 lakh. In this case, the nominee will only receive the death benefit amount for the first application.
    • Maturity/Survival Benefits: This is a pure term insurance plan, and thus will not acquire a cash value. Therefore, no benefit will be provided at maturity of the policy or in the form of survival benefits.
    • Tax Benefit: Policy buyers/nominees can claim tax benefits under Section 80C and Section 10(10D) of the Income Tax Act for both premiums paid and the payout that the nominee may receive. However, since tax laws are subject to change without prior notice, it is advisable to consult with a tax advisor from time to time.

    Key Features of the Pradhan Mantri Jeevan Jyoti Bima Yojana

    • This policy is offered at an affordable price to prospective policy buyers. The premium payable for this policy is Rs.330 (exclusive of service tax).
    • The policy term for the PMJJBY scheme is 1 year. However, this policy cover is annually renewable.
    • The sum assured offered under this scheme is Rs.2 lakh.
    • The lien period for this policy is 45 days, starting from the enrolment date.
    • There is no free-look period offered under this policy.
    • Policy buyers can make a nomination when purchasing this policy, as per Section 39 of the Insurance Act, 1938.
    • A 30-day grace period is provided to policyholders to pay their premium.
    • Regardless of when the policy buyer has subscribed to the policy, policy renewal can only happen on 1 June every year.
    • For new policy buyers, death during the first 45 days (lien period) is not covered. Further, in case the death occurred during the lien period and was non-accidental in nature, no claim will be admitted.
    • Policyholders can terminate the policy cover at any time, based on their needs.

    List of Banks that offer the Pradhan Mantri Jeevan Jyoti Bima Yojana Plan:

    The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a new group term insurance plan launched by the government of India to aid the weaker sections of the society that cannot afford life insurance plans. Being a term insurance plan, the plan offers coverage only against mortality. As of May 2015, only 20% of the population was found to possess insurance policies. The aim of the PMJJBY is to increase the insurance penetration in India.

    This life insurance plan is a yearly renewable plan and any individual, between ages 18 and 55, with a savings bank account can avail the benefits of the scheme by giving his/her consent to auto-debit the premium amount. The premium payable towards the policy is as low as Rs.330 per annum and the lump sum amount payable on the demise of the life assured is Rs.2 lakh.

    Banks that are willing to offer the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) can do so by partnering with LIC or any other life insurance company. The role of the bank will be to receive the premium amount from the master policyholder on or before the due date and then transfer the amount received to the insurance company. The bank will also hold the enrolment form, consent cum declaration form, and auto-debit authorisation document. The insurance company, at any point in time, may request for the above-mentioned documents.

    The PMJJBY is offered by various banks across the country. Here are a few banks that offer the PMJJBY:

    • Yes Bank
    • Vijaya Bank
    • Union Bank of India
    • State Bank of India
    • Punjab National Bank
    • Kotak Mahindra Bank Ltd.
    • IDBI Bank
    • ICICI Bank Ltd
    • HDFC Bank Ltd
    • Dena Bank
    • Central Bank of India
    • Canara Bank
    • Bank of Maharashtra
    • Axis Bank
    • Allahabad Bank
    • Andhra Bank

    The Pradhan Mantri Jeevan Jyoti Bima Yojana is a highly beneficial life insurance scheme backed by the Central government that provides financial security to the life assured’s family. The plan is easily accessible and the enrolment procedure is very simple and can be carried out in any of the partnered banks that offer the PMJJBY.

    Tabular Representation of the Key Details of the PMJJBY Scheme

    Entry Age
    • Minimum age at entry: 18 years
    • Maximum age at entry: 50 years
    Maturity Age 55 years
    Policy Term Yearly renewable
    Sum Assured Rs.2 lakh
    Premium Rs.330
    Lien Period 45 days

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