In a bid to make life insurance more accessible to the masses, the government of India introduced the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), a budget-friendly insurance plan. Priced at an annual premium of Rs 436, which translates to a mere Rs 36 per month, this scheme aims to provide affordable life insurance coverage to individuals.
Key Features of PMJJBY:
- Coverage and Payout: The scheme offers a payout of Rs 2 lakh to the family in case of the insured person’s demise, irrespective of the cause.
- Eligibility: Individuals aged 18 to 55 years are eligible to enroll in PMJJBY.
- Operational Period: PMJJBY operates from June 1 to May 31 each year.
- Bank Account Requirement: A valid bank account is necessary for receiving the benefits. Closure or insufficient funds may lead to the cancellation of insurance.
- Renewal: The policy provides coverage for one year and requires annual renewal.
- Medical Test: No medical test is required for enrollment. However, certain specified diseases must be declared in the consent letter.
- Premium Payment: The annual premium of Rs 436 must be paid in a single installment.
- Multiple Accounts: If an individual holds multiple accounts in different banks or post offices, they can enroll in PMJJBY using only one account.
- Aadhaar Linking: To enroll in PMJJBY, the bank account must be linked to the individual’s Aadhaar number.
- Auto-Renewal Feature: PMJJBY has introduced an auto-renewal feature, deducting next year’s premium automatically after the current policy ends.
Automatic Renewal Process:
- If you opt for Automatic Renewal, Rs 436 will be deducted annually between May 25 and May 31.
- Insurance coverage begins after a 45-day waiting period from policy issuance, except in the case of death due to an accident, where the waiting period is waived.
The Pradhan Mantri Jeevan Jyoti Bima Yojana stands as a commendable initiative, making life insurance accessible and affordable for citizens across the country.