For the growth of the poor and low-income section of society, the government of India has launched a new unique life insurance scheme, named as ‘Pradhan Mantri Jeevan Jyoti Bima Yojana’. This insurance plan is available for the people with the age group 18- 50 years.
PMJJBY is a one-year life insurance scheme, which is renewable from year to year, by offering coverage for death. It is a pure term plan which covers only mortality. It’s not for investment purpose. It provides a yearly life insurance coverage of Rs. 2,00,000 in case of the demise of the insured person, available at a premium of Rs.330 per annum per member and is renewable every year. The scheme is being offered by Life Insurance Corporation and all other life insurers who are willing to offer the product on similar terms with necessary approvals and tie up with banks for this purpose.
For the low-income group, this plan is very advantageous because of its low premium rates. This plan provides the security to the family of insured to cover any mishappening. The process of enrollment and switching is very easy and simple so that any individual can enrol in this policy without any hassle.
Main features of PMJJBY-
- The policy provides life coverage for 1 year.
- The insured can renew the policy every year.
- According to one’s own choice, the insured can walk out of the scheme at any time and rejoin it in future.
- The policy offers a maximum sum assured of Rs 2 lakh.
- As compared to the other term insurance policy the plan offers very low premium rates per year i.e. Rs. 330. Moreover, the premium rate is equal for all age groups ranging from 18 to 50 years.
- The claim settlement process offered by the policy is very simple and subscriber friendly.
There are certain cases under which the death benefit offered by the policy is terminated:-
- If the insured person is above 55 years.
- The policyholder is insured through different bank accounts.
- If the insured has inadequate balance in saving bank account to keep the insurance in force.
- In case you fail to purchase the scheme in the initial years you can join the policy in the subsequent years by paying the annual premiums and submitting a self-attested health certificate.
The waiting period for claims
Risk cover under PMJJBY is applicable only after the first 45 days of enrolment. In other words, insurers do not have to settle claims during the first 45 days from the date of enrolment. However, deaths due to accidents will be exempt from the lien clause and will still be paid.
Who is eligible for PMJJBY-
- To join this scheme through participating banks, a person should be aged between 18- 50 years and have a saving bank account.
- you can subscribe to this scheme by only one saving bank account although you have multiple bank accounts.
- it is mandatory to link your adhaar card to the participatory bank account to avail the benefits offered by the policy.
Insurance buyer will have to submit a self-attested medical certificate as a proof that he/she is not suffering from any critical illness mentioned in the policy declaration form if he is joining the scheme after the primary enrolment period ranging from 31st August 2015- 30th November 2015