Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) – Key Highlights, Benefits, Features and Eligibility Criteria

The PMJJBY policy was announced as a one-year plan of pure risk term insurance that can be bought from banks at cost-effective rates.

Key Highlights of Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY):

The policy offers Life Coverage of INR 2 lakh	PMJJBY renewal is done on yearly basis	The term of the policy is one year
The policy is available at reasonable PMJJBY premium amount	The process of enrolling into the policy is simple and swift	The policy is an initiative of government of India

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) Benefits

Here are some primary Pradhan Mantri Jeevan Jyoti Bima Yojana benefits:

1. Death Benefit – During the 1-year period of the policy term if the insured dies in an unfortunate event, the policy pays the death benefit of INR 2 lakh to the nominee as mentioned in the plan details.

2. Tax Benefits – The PMJJBY account allows policyholders to enjoy tax exemptions to the policyholder as per the existing income tax laws in India.

3. Maturity Benefits – Being a pure term insurance plan, PMJJBY does not allow any maturity benefit. The policyholder can renew the plan after the 1-year policy duration is over to stay in the plan.

Features of Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)

1. Policy enrolment – The policy enrolment for PMJJBY takes place as soon the premium amount for the plan is auto-debited from the bank account of the policyholder. The plan stays active until May 31 of the next year and can be renewed on June 1 to extend coverage for another year by paying the full premium.

2. Premium Amount – The premium amount for the plan is fixed at INR 330 per annum and has to be paid at one go.

3. Line period – This is the period of first 30 days of the policy duration from the enrolment date during which the policy doesn’t cover the insured. So, if the insured dies during this period, the nominee doesn’t get any benefit.

4. Free-look period – The PMJJBY policy doesn’t offer any free-look period.

5. Grace Period – The plan comes with a grace period of 30 days from the date of renewal that is 1st June. Hence, during this one-month period, the insurance remains active. However, if the policy is not renewed within that time, it will lapse.

6. Revival of Policy – To revive a policy after the grace period, the policyholder needs to pay the premium in full and submit a good health certificate along with other documents.

Eligibility Criteria of Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)

Entry Age	Min – 18 years, Max – 50 years
Maturity Age (Maximum)	55 years
Policy term	1 year (renewed annually)
Enrolment period	June 1 to May 31
Premium payment option	Single pay (auto-debited)
Premium amount	INR 330 per annum
Sum assured	INR 2 lakh

How to Apply for Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)

To apply for the policy, an individual has to go through their bank in which they have a savings account. All they need is to get in touch with the concerned bank and pay the premium to avail the policy. Once they make the payment of the premium in full, the policy become active. If a policyholder has exited the plan, he/she can join the plan back by paying the premium.

Termination of insurance cover under PMJJBY

The cover terminates in case of the below mentioned events:

• If the policyholder attains the age of 55 years
• If the policyholder closes the bank account linked with the policy
• If the bank account has insufficient balance at the time of policy renewal
• If the policyholder has bought the same plan with multiple banks or insurance providers
• If there is any administration issue that ceases the insurance account. In this case, the policy can be renewed by paying the complete premium

Claim Settlement with PMJJBY

In the event of demise of the policyholder during the policy duration, the claim will be settled by the insurer.

Here are the steps to follow:

• The nominee has to approach the bank that is linked with the policy
• The nominee must carry the certificate of death of the policyholder
•  The nominee should get the claim form as well as the receipt of discharge (by downloading from insurer website or collecting it personally from a branch)
• Submitting the claim form to the bank along with other documents like death certificate, receipt of discharge, cancelled check copy to get the money transferred .

The bank verifies the policy to check if it is active and if the premium has been paid in full. The bank will then verify nominee detail and claim form. After that the bank will fill the required details and submit the form to the concerned department of P&GS office at LIC within 30 days.

Once the papers reach the LIC office, they will verify if there are any death claim already made in the name of the policyholder through any other account. If they find the details correct, they will release the death benefit.