Having some form of life insurance is absolutely critical to
the financial security of a family. However, getting an insurance policy from
an insurance company requires documents especially income proofs which
determine the coverage that a person gets. This excludes a large portion of
people, especially those in the unorganized sector who may not have properly
documented income records.
Here are the features of this scheme:
The PMJJBY is a term insurance scheme. This means there is
no maturity or survival benefit. The compensation under the scheme is paid out
on the death of the policyholder.
The premium under the PMJJBY policy is Rs. 330. This premium
is debited from the bank account of the policyholder once every year. It
provides coverage for one year.
The sum assured under this scheme is Rs. 2 lakhs. This is
paid out on the death of the policyholder.
It is possible for a policyholder to exit the scheme and
then return to it anytime in the future.
The premium rate is unchanged for policyholders within the
age of 18 years to 50 years.
The Pradhan
Mantri Jeevan Jyoti Bima Yojana gives the policyholder a tax benefit under
Section 80C of the Income Tax Act. The compensation received from the Insurance
company from the PMJJBY policy is also exempt under Section 10(10D). This means
no tax will have to be paid on the compensation received under this scheme.
The coverage period for the Pradhan Mantri Jeeven Jyoti Bima
Yojana is from 1st June to 31st May every year. The premium gets auto debited
from the bank account anytime before 1st June.
The scheme provides life cover up to the age of 55 years.
When the age of a person is 55 years, the policy gets terminated and cannot be
renewed.
If the bank account is operated jointly, then each of the
persons can pay Rs. 330 and get coverage under the PMJJBY scheme.
The breakup of the premium amount is Rs. 289 which is the
pure insurance premium that goes to the insurance company. Rs. 30 acts as a
reimbursement of expenses incurred by the bank or agent for this policy. Rs. 11
are the administrative expenses of the bank that are reimbursed.
Like any standard insurance policy, there is a waiting
period on the PMJJBY policy of 45 days. This means if the policyholder dies within
45 days of enrolment, no compensation will be paid out.
The Pradhan Mantri Jeevan Jyoti Bima Yojana is administered
by banks, post offices and agents.
It is possible to enrol in the scheme either offline or
online through internet banking.
To make a claim under the PMJJBY policy, the nominee needs
to approach the bank with a death certificate of the policyholder.
