Launched by Narendra Modi government, Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a one-year term life insurance policy. This scheme offers a coverage of ₹2 lakh with a yearly premium of ₹330. Term insurance coverage is a type of insurance policy which provides huge financial protection to the nominee if the policyholder dies during the policy term. Pradhan Mantri Jeevan Jyoti Bima Yojana is offering a life cover ₹2 lakh for a yearly premium of ₹330 per member. This is a pure term insurance policy which covers death.
Pradhan Mantri Jeevan Jyoti Bima Yojana is available for the people in the age group of 18 to 50 years. A bank account with Aadhar card as a primary KYC is mandatory to avail the benefits under this insurance scheme. If one avail this policy before 50 years old, he/she can get the risk coverage till the age of 55 years provided they pay the yearly premium.
How it works
Pradhan Mantri Jeevan Jyoti Bima Yojana provides a life cover of ₹2 lakh. A yearly premium of ₹330 needs to be paid to avail the benefits under PMJJBY scheme. The premium will be auto-debited in a single installment from the policy holder's bank account on or before May 31 of each year. The scheme is renewable every year which means one needs to pay entire yearly premium on or before June 1. Those who are joining after May 31, need to pay the entire premium in one installment. The policy holder can get out of the scheme and join it back again at any time.
The scheme is being offered by the Life Insurance Corporation and several other private life insurers. Out of the premium of ₹330, ₹289 will go to the insurer and ₹30 will go to agent or bank as reimbursement of expenses. An amount of ₹11 goes to reimbursement of administrative expenses to the participating bank. Under PMJJBY, the risk cover is applicable after the first 45 days of enrollment.
As on 31st March, 2019, cumulative gross enrollment reported by banks subject to verification of eligibility, etc. is over 5.91 crore under PMJJBY. Out of total 145763 registered claims under Pradhan Mantri Jeevan Jyoti Bima Yojana, 135212 have been disbursed, said the government.