Pradhan Mantri Jeevan Jyoti Bima Yojana is an excellent
initiative by the Indian Government, especially for the poor and the
underprivileged. The plan provides the family with financial and social
security and provides them with comfort and assurance on the death of a family
member.
The death benefit would give the family a specific buffer
and time to work out the new source of income if the breadwinner suddenly dies.
The scheme is a good step in ensuring that low-income groups are backed up and
helps them combat any adversity.
Pradhan
Mantri Jeevan Jyoti Bima Yojana is a term insurance plan introduced by the
Indian Government. The first mention of this scheme was made in Finance
Minister Arun Jaitley's Budget speech in February 2015.
Prime Minister Narendra Modi unveiled the initiative at the national
level in Kolkata on May 9 2015. PMJJBY is a term insurance scheme launched by
the Indian Government.
Features of Pradhan Mantri Jeevan Jyoti Bima Yojana
The insurance offers life cover with renewable option every
year for a year.
The plan gives an INR 2 lakhs life cover for a nominal
premium of INR 330 per annum.
There is no maturity value in this product as it is pure
term insurance covering life risk.
Risk cover begins after 45 days of enrolment, but the
assured sum will be paid on death due to accident.
The plan may be purchased through participating banks in
India that are associated with LIC and other private insurance companies.
To be enrolled in this scheme, the policyholder must have a
savings bank account.
It is a government-backed term insurance plan that makes
settlement of claims easy and dependable.
Re-joining the scheme is simple if, for any reason, one has
withdrawn from the programme.
The scheme is easy to comprehend and has no complexities.
Benefits of Pradhan Mantri Jeevan Jyoti Bima Yojana
Maturity benefit: This is a pure-term insurance plan
that only covers the death benefit and therefore, no maturity benefit is
available.
Death benefit: The plan gives a very significant
coverage of the death benefit of INR 2,00,000 on the policyholder's death for
any reason.
Risk coverage: The scheme Pradhan Mantri Jeevan Jyoti
Bima Yojana includes all the life risks. Post the 45 days of the cooling period
provision; the death benefit sum is granted to the policyholder's candidate on
death occurrence for any cause. If death occurs as a result of an accident,
then the clause for the cooling period is not applied, and the nominee is given
the death benefit amount.
Tax benefit: Under section 80c of the Income Tax Act,
a tax benefit may be availed on the premium payable under this scheme.
Essential details of Pradhan Mantri Jeevan Jyoti Bima
Yojana
In this plan, there is a cooling-off period of 45 days,
after which the coverage begins. Accident cases, however, are excluded from
this rule of cooling off period.
The plan will be terminated automatically when the bank
account is closed.
The plan is limited to only one policy-per policyholder,
regardless of who has multiple bank savings account that offers the scheme.
Each year between May 25 and May 31 the premium will be
deducted from the policyholder's bank account.
When, for any cause, the insurance cover is cancelled, it
can be restored by paying the full premium and showing evidence of good health.
