Most of the people in the country are not able to get insurance cover due to lack of information. Those who have information about it are unable to make up their mind to take the coverage due to the expensive policies offered by insurance companies. In such a situation, Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a better option for them. In this, insurance coverage for one year is available at a price less than the cost of monthly tea. This scheme is a good step towards promoting financial security as well as financial inclusion in the country. The objective of this scheme is to provide life insurance coverage to the people at a very low cost. It was started on May 9, 2015 by the government led by Prime Minister Narendra Modi.
Under Pradhan Mantri Jeevan Jyoti Bima Yojana, life insurance cover can be availed at a monthly cost of less than Rs 40. In this, Rs 2 lakh is given to help the family in case of death of the customer due to any reason. What are the benefits of this scheme? Where will customers be able to subscribe to it? What is the annual premium of this insurance? Let us know about all such important things related to Pradhan Mantri Jeevan Jyoti Insurance Scheme.
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What is Pradhan Mantri Jeevan Jyoti Bima Yojana?
This plan is with life insurance coverage for one year duration. Which is renewed on annual basis. In this, life insurance cover is available for death due to any reason. A coverage of Rs 2 lakh is available on death of the customer due to any reason. That means, in case of any untoward incident, Rs 2 lakh will be given to help the family members. To avail the benefits of this insurance, customers only have to A premium of Rs 436 has to be paid annually.
This is how premium has to be paid
For those enrolling under PMJJBY for the first time in the middle of the policy term, proportionate premium is allowed to be paid as follows;
1. Full annual premium of Rs 436 is payable for enrollment in June, July and August.
2. For enrollment in September, October and November – Prorated premium of Rs 342 is payable
3. For enrollment in December, January and February – Prorated premium of Rs 228 is payable.
4. For enrollment in March, April and May – Prorated premium of Rs 114 is payable.
However, under the scheme, at the time of renewal, a premium of Rs 436 has to be deposited for the entire year.
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For first time enrolling customers the risk starts from the date of auto-debit of premium. However, insurance cover will not be available in case of death (other than accident) occurring during the first 30 days from the date of enrollment in the scheme (lien period) and death (other than accident) during the lien period. No claim will be accepted. There is also an option of auto debit. The premium will be deducted in one installment through 'Auto Debit' facility from the account holder's bank/post office account as agreed by the customer at the time of enrolment.
Who can buy PMJJBY scheme
All individual (single or joint) account holders in the age group of 18 to 50 years of the participating banks/post offices are eligible to participate. In case an individual has multiple accounts in one or different banks/post offices, the individual is eligible to join the scheme through one bank/post office account only.
How to join this scheme
For registration in PMJJBY, application can be made by visiting any nearest bank. If you want, you can also take help from a bank friend or insurance agent. Life insurance companies can also be contacted for PMJJBY. Government insurance companies and many private insurance companies are offering these schemes in collaboration with banks.