Pradhan Mantri Jeevan Jyoti Bima Yojana

The Pradhan Mantri Jeevan Jyoti Bima Yojana is a group life insurance scheme offering coverage against demise due to unfortunate events. The coverage under the PMJJBY works on a yearly basis. The master policyholder must renew their PMJJBY plan every year at the time of renewal. PMJJBY provides easy-to-avail life insurance coverage at an affordable cost.

Overview
Key features
Eligibility Criteria
Customer Feedback
FAQ

Details of Pradhan Mantri Jeevan Jyoti Bima Yojana

Here are some important PMJJBY scheme details you should know about:

PMJJBY is a group life insurance plan. It will have a master policyholder who retains the right to the policy. Individuals opting for coverage under the plan will be considered members and will be entitled to member’s benefits.
PMJJBY offers insurance coverage of ₹2 lakhs to the member’s nominees in case of the insured’s demise due to any reason. This coverage must be renewed every year.
An individual must be within 18 to 50 years of age to be eligible for the scheme.
The premium for the plan depends on when one enrols in the scheme.
An individual must have a savings account at a bank or a post office to be eligible for this scheme. The premium for the plan will be auto-debited from the same.
The group covers a minimum of 50 members. There is no limit to the number of maximum members.

Key Features of PMJJBY

Fixed Rate of Premium

With the PMJJBY, members get to enjoy life insurance at an affordable fixed rate. The rate depends on the date of enrolment and the term chosen.

Flexible Cover Term

The PMJJBY allows a flexible cover term that suits the member’s needs. One can choose a short tenure, like a month, or a long term, like 10 years.

₹2 Lakhs Cover

Members can enjoy a life cover of ₹2 lakhs, which can help their loved ones in times of need.

Available for all Savings Account holders

Members can opt for the PMJJBY if they have a savings account at a participating bank or post office.

Yearly Renewal

The Pradhan Mantri Jeevan Jyoti Bima Yojana is a yearly renewable plan. One must renew it at the PMJJBY renewal date to enjoy the plan’s benefits.

Group Insurance

The PMJJBY plan is a group plan, with the master policyholder having the major rights to the policy.

Benefits of the Pradhan Mantri Jeevan Jyoti Bima Yojana

The Pradhan Mantri Jeevan Jyoti Bima Yojana benefits are as follows:

Financial Security for Loved Ones

By opting for the PMJJBY, members can provide a financial cushion to their loved ones. This ensures that, no matter what unfortunate event strikes, the life assured’s family will not face financial stress. The payout can help the dependants manage their household expenses, education costs, debt repayments, and more.

Affordable Coverage

The premiums for the PMJJBY are very affordable. One can opt for this cover for an annual premium of ₹436. This ensures that the PMJJBY is an economical and accessible option for everyone.

Hassle-free Enrolment Process

One of the major Pradhan Mantri Jeevan Jyoti Bima Yojana benefits is that it is easy to get enrolled. Interested members can enrol in the scheme by accessing the membership form from the Master policyholder and filling it up. Submit it along with the required documents and make the premium payment. Once submitted, the member will be covered against risks to their life.

Assurance of the Government

The Pradhan Mantri Jeevan Jyoti Bima Yojana is backed by the Government of India. This allows for greater transparency and ease of process.

Tax Benefits

Members enrolled under the PMJJBY can enjoy tax benefits as per prevailing laws. The premiums are tax-deductible under Section 80C of the Income Tax Act. In addition, the death benefit payout is also tax-exempted under Section 10 (10)D of the Act. These benefits can help reduce the tax outgo of the members.

Peace of Mind

One of the most important Pradhan Mantri Jeevan Jyoti Bima Yojana benefits is the peace of mind it brings. It gives members the assurance that their loved ones will not face any financial stress in their absence. The payout can help them continue with their lives, face financial challenges, pursue their dreams, and more, with their head held high.

Eligibility Criteria Applicable to Pradhan Mantri Jeevan Jyoti Bima Yojana

How to Enrol for the PMJJBY Scheme?

Enrolling in the Pradhan Mantri Jeevan Jyoti Bima Yojana scheme as a member is a hassle-free process:

1. Obtain the membership form available with the Master Policyholder.

2. Fill it out with the required details..

3. Ensure you have all the documents at hand.

4. Submit the completed form with any required documents to the Master Policyholder.

To apply for the PMJJBY, you must have a savings account in a participating bank or post office.

How Does PMJJBY Work?

Let’s understand how this group life insurance policy works.

Understanding Eligibility

The Pradhan Mantri Jeevan Jyoti Bima Yojana or PMJJBY is available to all savings account holders aged 18 to 50 years in participating banks or post offices. However, an individual can only enrol through one savings account, even if they have multiple accounts across different banks. Aadhaar should be the primary KYC document required for the bank account.

Enrolling for the Scheme

To join the PMJJBY scheme, individuals need to fill out a simple membership form, which can be availed from the Master Policyholder. The insurance coverage runs annually from June 1st to May 31st. The premium is automatically deducted from the account each year. New members must enrol for the PMJJBY before May 31st to activate their cover for that year. If they enrol later, the coverage begins only after the premium is paid and a self-declaration of good health is submitted (if required).

Understanding the Waiting Period

For first-time subscribers, there is a 30-day waiting period (lien period), during which the cover does not apply to deaths caused by events other than an accident. However, accidental deaths are covered immediately. If a member leaves the scheme and re-joins later, the waiting period applies again.

Joining and Rejoining PMJJBY

Individuals who become eligible for PMJJBY or those who were previously eligible but did not enrol can still join the scheme while it is active. Similarly, those who discontinued their subscription can also opt for PMJJBY renewal.

However, for such new or returning members, a 30-day waiting period (lien period) will apply, during which only accidental deaths are covered. They may also need to submit a self-declaration of good health. This depends on the insurer's discretion and government guidelines at that time.

The following table will further simplify the PMJJBY scheme details:

Premium Payment

Insurance Coverage

Example

The premium for PMJJBY is paid by the Master Policyholder. The amount is collected from the enrolled members by directly deducting the premium from their savings account, but only after obtaining their consent.

Once the premium payment is completed and all eligibility conditions are met, the insurance cover begins.

Master Policyholder: The bank or post office through which members avail the scheme.

Members: Individuals holding savings accounts in participating banks or post offices.

Premium Payment: The bank deducts the premium from the member’s savings account annually and transfers it to the insurer.

What are the Tax Benefits under the PMJJBY Scheme?

The premium paid for the Pradhan Mantri Jeevan Jyoti Bima Yojana qualifies for tax exemptions, depending on who is paying the premium, as per the applicable tax laws.

For Members:

Individuals enrolled in PMJJBY can claim tax deductions under Section 80C of the Income Tax Act, 1961 on the premium amount paid.

For the Master Policyholder:

The Master Policyholder pays the premium upfront but recovers it from members. Since the cost is passed on to members, the Master Policyholder is not eligible to claim any tax benefits.

Tax benefits will be applicable as per the prevailing tax laws and are subject to changes by the government.

Eligibility Criteria

Age
Group Size
Sum assured
Premium eligibility

Age at Entry

Question

Age at Entry

Answer

Minimum

18 Years

Maximum

50 Years

Age at Maturity

Question: Age at Maturity
Answer: Maximum

55 Years
Tags

Group Size

Question

Group Size

Answer

Minimum

Maximum

No Limit

Sum assured

Question: Sum assured
Answer: Fixed cover option of ₹2 lakh per member
Tags

Premium eligibility

Question

Premium eligibility

Answer

a) For enrolment in June, July and August – Full Annual Premium of Rs.436 /- is payable

b) For enrolment in September, October, and November – pro rata premium of Rs. 342 /- is payable

c) For enrolment in December, January and February – pro rata premium of Rs. 228 /- is payable.

d) For enrolment in March, April and May – pro rata premium of Rs. 114 /- is payable

FAQs on Pradhan Mantri Jeevan Jyoti Bima Yojana

View All FAQ

Understanding the Pradhan Mantri Jeevan Jyoti Bima Yojana

Managing the Pradhan Mantri Jeevan Jyoti Bima Yojana

Benefits of the Pradhan Mantri Jeevan Jyoti Bima Yojana

Eligibility of the Pradhan Mantri Jeevan Jyoti Bima Yojana

Applying for the Pradhan Mantri Jeevan Jyoti Bima Yojana

What is IndiaFirst Life Pradhan Mantri Jeevan Jyoti Bima Yojana Plan?

Answer

IndiaFirst Life Pradhan Mantri Jeevan Jyoti Bima Yojana Plan is an on participating, nonlinked, yearly renewable group protection plan offered to a group of bank/ post office customers who have savings bank accounts.

When does the life insurance coverage under the scheme terminate?

Answer: The life insurance coverage of the member terminates (or is restricted) under the Pradhan Mantri Jeevan Jyoti Bima Yojana if:

The member attains 55 years of age (this is subject to annual renewal up to the birth date). Entry into the scheme is not possible once a person reaches 50 years of age.
The member closes the savings account with the bank/ post office or is unable to keep enough premiums to support the insurance premiums.
The member is already covered under one plan - in such a case, the insurance cover will be limited to ₹2 lakhs and the premium paid for the other plan will be forfeited.

What is the term of the Policy?

Answer: This is a yearly renewable term plan. It is available to the members of the group basis the date of enrolment and the pro rata premium charged.

Is the Pradhan Mantri Jeevan Jyoti Bima Yojana refundable?

Answer

The premiums for the Pradhan Mantri Jeevan Jyoti Bima Yojana are refundable only if the policyholder chooses to cancel the policy within the free look period.

In addition, the premiums may also be refunded if it is found that the member has enrolled for more than one PMJJBY plan.

What would be the benefits under the scheme and the premium payable?

Answer

The main benefit of the Pradhan Mantri Jeevan Jyoti Bima Yojana is the affordable financial protection it provides. Members can annually pay a premium of ₹436 and be assured of a life cover of ₹2 lakh, which the nominee will receive in case of the member’s demise due to any cause. It is an affordable term plan that ensures one’s family is financially secure in the case of an unfortunate event.

1. Premium Payable

The annual premium for PMJJBY is ₹436 per subscriber. However, for individuals enrolling mid-policy, a pro-rata premium is applicable as follows:

June, July, August – Full premium of ₹436
September, October, November – ₹342
December, January, February – ₹228
March, April, May – ₹114

Regardless of the enrolment period, when carrying out their PMJJBY renewal, members must pay the full premium of ₹436 annually.

2. Risk Coverage & Lien Period

For new subscribers, coverage begins from the date of auto-debit of the premium. However, there is a 30-day lien period during which only accidental deaths are covered. If death occurs due to natural causes within this period, no claim will be paid.

PMJJBY is an attempt to ensure affordable coverage and essential life insurance protection for people across India.

Are NRIs eligible for coverage under the PMJJBY?

Answer

NRIs who have an eligible bank account with a bank branch located in India can opt for the Pradhan Mantri Jeevan Jyoti Bima Yojana. This is applicable as long as the individual meets the terms and conditions of the scheme.

If the insured NRI member passes away, the death benefit paid to the nominee will be in Indian currency only.

What is the group size to whom the cover can be offered?

Answer: Minimum Group Size Maximum Group Size
50 members No limit

Is Aadhaar mandatory for enrolment in the scheme?

Answer

Aadhaar is not directly mandatory for enrolling in the Pradhan Mantri Jeevan Jyoti Bima Yojana. However, Aadhaar should be the primary KYC document for the bank account that the member will use for enrolment.

Which Bank Accounts are eligible for subscribing to PMJJBY?

Answer: Any savings bank or post office account can be used to enrol in PMJJBY. Institutional account holders are not eligible.

Can individuals who leave the scheme re-join?

Answer: Yes, individuals who have exited the scheme can rejoin. They must pay the appropriate premium. If they are re-joining mid-year, the pro-rata premium will be charged. These individuals must go through the waiting period once again. As a result, the insurance benefit will not be applicable for demise (due to any cause other than accident) for the first 30 days from the date of enrolment into the PMJJBY.

What is the frequency of premium payments?

Answer: It is a single premium payment plan which implies that you pay only once a year and enjoy the benefits of the plan all throughout the term of the Policy.

What is the minimum and maximum premium under the policy?

Answer: For enrolment in June, July and August – Full Annual Premium of Rs.436 /- is payable.
For enrolment in September, October, and November – pro rata premium of Rs. 342 /- is payable.
For enrolment in December, January and February – pro rata premium of Rs. 228 /- is payable.
For enrolment in March, April and May – pro rata premium of Rs. 114 /- is payable.

What is the enrolment period and modality?

Answer

To enrol for the Pradhan Mantri Jeevan Jyoti Bima Yojana, interested applicants must submit an enrolment form within the June-August period. They must also permit auto-debit from their bank or post office savings account. The PMJJBY scheme provides coverage for one year, from June 1st to May 31st.

Once the permission for auto-debit is given, the annual premium of ₹436 will be deducted automatically unless the member provides further instructions.

One can also enrol mid-year and pay the pro-rata premium as follows:

Enrolling in September, October, and November – pro rata premium of Rs. 342/- is payable
Enrolling in December, January and February – pro rata premium of Rs. 228/- is payable.
Enrolling in March, April and May – pro rata premium of Rs. 114/- is payable.

The PMJJBY renewal premium remains ₹436 per annum. One can enrol late upon payment of the appropriate premium. However, there might be changes in insurance coverage.

Can eligible individuals who fail to join the scheme in the initial year join in subsequent years?

Answer

Yes, new interested applicants can join the Pradhan Mantri Jeevan Jyoti Bima Yojana later on. They must pay the premium through the auto-debit option. However, later applicants will have a waiting period clause wherein the member’s demise (due to any cause other than accident) will not be covered for the first 30 days after enrolment.

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