What is the eligibility criteria for Pradhan Mantri Jeevan Jyoti Bima Yojana?

The government of India has designed a life insurance scheme for the citizens of the country, it is called the Pradhan Mantri Jeevan Jyoti Bima Yojana, for the growth of the poor and low-income section of society. As a pure term insurance plan, the Pradhan Mantri Jeevan Jyoti Bima Yojana is available for people between the age of 18-50 years. The PMJJBY is a renewal term insurance policy which provides a yearly life insurance coverage of Rs. 2,00,000 in case of the death of the insured person, at the most affordable premium rate of Rs. 330 per annum.

What are the benefits offered by the Pradhan Mantri Jeevan Jyoti Bima Yojana?

Maturity Benefit: Since this plan is a pure term insurance plan, the PMJJBY will not provide any maturity or surrender benefit.

Risk Coverage: The PMJJBY will provide a risk coverage of 1 year. As this is a renewable policy, it can be renewed yearly. The policyholder will also be able to opt for a long duration, probably more than a year by the auto debit option linked to the individuals saving bank account.

Tax Benefit: The premium which is paid towards the policy is eligible for tax deduction under section 80C of the income tax act. In case an insurance holder is not able to submit the form 25, then any life insurance proceeds exceeding Rs. 1,00,000 is going to be taxed by 2%.

Death Benefit: In case of a death of the insured person, the PMJJBY will provide a death coverage of Rs. 2,00,000 to the beneficiary of the scheme.

The eligibility criteria for the Pradhan Mantri Jeevan Jyoti Bima Yojana is listed below:

Any individual between the age 18-50 years having a saving bank account can quickly join the scheme through the financial institutions who are a part of this scheme.

Even if individual has multiple bank accounts, they can subscribe the plan by only one saving bank account.

To avail the advantages offered by the policy, it is mandatory to link the individuals adhaar card to the participatory bank account.

The insurance buyers joining the scheme after the first enrolment period ranging from 31st August 2015 – 30th November 2015 will need to submit a self-attested medical certificate as a proof that they are not suffering from any critical illness mentioned in the policy declaration form. 

Pradhan Mantri Jeevan Jyoti Bima yojana is an advantageous scheme which can be subscribed to by merely linking the Aadhar card with the participating bank account. This scheme was open for subscription from 2016. These subscribers can enroll themselves after the date as well, provided they make the payment of full annual premium payment and offer a legitimate health certificate. Since this is a government-backed insurance policy with minimum premium rates, this plan is very advantageous for the individuals who have low income. This plan efficiently secures the financial future of an individual and provides them backup so they will be able to tackle any eventuality.