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.
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:
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.
|Maturity Age||55 years|
|Policy Term||Yearly renewable|
|Sum Assured||Rs.2 lakh|
|Lien Period||45 days|
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