IndiaFirst Pradhan Mantri Jeevan Jyoti Bima Yojana

IndiaFirst Life Pradhan Mantri Jeevan Jyoti Bima Yojana

With a population of over 138 crores, India is a country of massive size and potential. Approximately 72% of this population resides in rural India. One of the biggest challenges facing the country today is the lack of financial inclusion. The IndiaFirst Life Pradhan Mantri Jeevan Jyoti Bima Yojana is a government social security scheme and a step in this direction.

Financial inclusion stands for ensuring that every person in the society has access to banking services and financial solutions, irrespective of their age, gender, or financial condition. The goal is to offer the fruits of India's progress to every individual without any discrimination. Many Indian households do not have a savings account or access to banking and financial services. Financial inclusion is a process that aims to create awareness about one's economic rights and responsibilities and get everyone the service solutions they need.

Most banks require you to meet specific criteria before you are allowed to open a savings account or avail of other banking services. By creating solutions that eliminate these barriers, financial inclusion initiatives like the Pradhan Mantri Jeevan Jyoti Bima Yojana hope to offer social security to all segments of society.

Announced in Budget 2015, the Pradhan Mantri Jeevan Jyoti Bima Yojana, or PMJJBY policy, is an Indian life insurance scheme supported by the Government of India. Offering year-on-year renewal, the PM Jeevan Jyoti Bima Yojana offers you yearly life coverage and a fixed death benefit amount of Rs. 2,00,000 in case of the demise of the policyholder during the tenure of the PMJJBY insurance cover.

To offer the Pradhan Mantri Jeevan Jyoti Bima Yojana and related variants to the population, life insurance companies of India have collaborated with banking institutions so everyone can have access to the PMJJBY coverage on similar terms.

The IndiaFirst Life Pradhan Mantri Jeevan Jyoti Bima Yojana aims at providing insurance to all of your banking customers who have a savings bank account. With the bank functioning as the master policyholder under the Pradhanmantri Jeevan Jyoti Bima Yojana, this group insurance plan  is perfect for banks who want to provide life cover to existing and new customers at a reasonable fixed rate.

What are the Features of Pradhan Mantri Jeevan Jyoti Bima Yojana?

The IndiaFirst Life Pradhan Mantri Jeevan Jyoti Bima Yojana is a non-linked, non-participating, yearly renewable group protection plan offered to a group of bank customers who have savings bank accounts.

The one thing certain about life is that you and your loved ones will face many uncertainties that require you to plan ahead for your wellbeing and happiness. It is the prime responsibility of any adult to ensure their loved ones' financial security, particularly if you are the money-maker of the family. In an unfortunate situation, your grieving family should not be left in a lurch trying to figure out how to clear liabilities and keep their dreams alive. Getting a Life Insurance policy with suitable coverage is one of the most common ways to ensure your family's financial security.

The PMJJBY insurance plan offered by IndiaFirst Life works as a group insurance plan and offers pure protection benefits to all the members in the group of the master policyholder. In an individual pure protection policy, the individual is the policyholder and life insured. In case of the policyholder's untimely demise during the policy tenure, the beneficiaries listed in the policy documents receive the sum assured as a death benefit.

In the case of the IndiaFirst Life Pradhan Mantri Jeevan Jyoti Bima Yojana, the PMJJBY coverage offered is group insurance coverage. In a group term insurance plan, the chosen life insurance scheme covers a whole group of people under a single policy contract. With the IndiaFirst Life PM Jeevan Jyoti Bima Yojana, the bank or financial institution opting to protect their customer's lives is the master policyholder. At the same time, the members are the people holding a savings bank account with the participating financial institution.

Key Features of the IndiaFirst Life Pradhan Mantri Jeevan Jyoti Bima Yojana

For the Policyholder, i.e., the bank or financial institution:

• You can now provide life cover at a reasonable fixed rate to all your customers under the Pradhan Mantri insurance plan.
• The IndiaFirst Life Pradhan Mantri Jeevan Jyoti Bima Yojana provides you the flexibility to add new members during the PMJJBY plan year.

For the Members, i.e., savings bank account holders at the participating bank:

• You get the opportunity to secure your loved ones as you get a life cover at an extremely reasonable price under the IndiaFirst Life Pradhan Mantri Jeevan Jyoti Bima Yojana.
• In the unfortunate event of the member's/life assured demise, a Sum Assured equal to Rs. 2 lakhs will be payable to the nominee/appointee/legal heirs under the PMJJBY plan.
• You can enjoy tax benefits on the premium you pay under Section 80C of the Income Tax Act, 1961.

How does the IndiaFirst Life Pradhan Mantri Jeevan Jyoti Bima Yojana work?

As a group protection plan, the IndiaFirst Life Pradhan Mantri Jeevan Jyoti Bima Yojana offers a fixed cover option of Rs. 2 lakhs. All the members enrolled in the IndiaFirst Life PMJJBY plan will get a risk cover of the same amount under the PM Jeevan Jyoti Bima Yojana. As a yearly renewable plan, the IndiaFirst Life Pradhan Mantri Jeevan Jyoti Bima Yojana offers PMJJBY coverage to all the members of the group for one year from the date of issuance of the PMJJBY plan.

Who can be a part of the IndiaFirst Life Pradhan Mantri Jeevan Jyoti Bima Yojana?

• The Pradhan Mantri insurance plan offered by IndiaFirst Life includes a Master Policyholder and the group members.
• The Master Policyholder is the bank or financial institution choosing to offer the PMJJBY insurance cover to their customers or members to protect the members' family against life uncertainties. The Master Policyholder is the one who holds and operates the PMJJBY plan.
• The lives covered under the IndiaFirst Life Pradhan Mantri Jeevan Jyoti Bima Yojana are those of the members of the group. The death benefit guaranteed by the PMJJBY coverage is payable on the demise of the participating member's life. When applying for cover for the first time, the member should have a savings bank account and could be any individual in the age group of 18 to 50 years.
• In case one person has multiple savings bank accounts in one or many banks, they are eligible to join the PMJJBY plan through any one savings bank account only.

What are the premium options under the IndiaFirst Life Pradhan Mantri Jeevan Jyoti Bima Yojana?

The IndiaFirst Life Pradhan Mantri Jeevan Jyoti Bima Yojana is a single premium payment plan that means that you have to pay for PMJJBY insurance cover only once a year to enjoy the benefits of the plan throughout the term till renewal.

The group members or savings bank account holders get PMJJBY insurance cover at an annualised minimum premium rate of Rs. 330 per annum, plus any applicable tax, cesses, and levies. The Master Policyholder or bank pays the premium to the insurer, and this PMJJBY plan premium is auto-deducted from the member's bank account in one instalment by the bank.

Members are allowed to join the IndiaFirst Life Pradhan Mantri Jeevan Jyoti Bima Yojana only during a specific period in the plan year. The coverage offered under the PMJJBY policy will be for a fixed period of one year with a pre-determined start and end date at a fixed premium rate.

In case a member wishes to enter the IndiaFirst Life PM Jeevan Jyoti Bima Yojana during the plan year, late enrolment for prospective cover will be possible till three months from the commencement of the PMJJBY coverage. Those joining subsequently would need to pay the full annual premium for future cover under the IndiaFirst Life Pradhan Mantri Jeevan Jyoti Bima Yojana, with the submission of self-certification of good health.

What types of claims are covered under the IndiaFirst Life Pradhan Mantri Jeevan Jyoti Bima Yojana?

There are no exclusions under the Pradhan Mantri Jeevan Jyoti Bima Yojana. As such, the group member's death owing to any reason, makes for a valid claim as long as it after the commencement of the risk cover. In case of the insured person's death due to any reason, the PMJJBY insurance cover provides a death benefit of Rs. 2,00,000 to the nominee/beneficiaries of the policy.

The PMJJBY plan offers yearly life cover to the member and a death benefit to the nominee in case of the unfortunate demise of the life assured. The PMJJBY coverage amount provided to the nominee is tax-free. As a commitment to the goal of financial inclusion, the PM Jeevan Jyoti Bima Yojana provides a stress-free and straightforward claims process.

What are the benefits of the IndiaFirst Life Pradhan Mantri Jeevan Jyoti Bima Yojana?

The IndiaFirst Life Pradhan Mantri Jeevan Jyoti Bima Yojana is a one-year pure protection life insurance policy that can be renewed year-on-year. The primary benefit offered under the PMJJBY plan is the death coverage provided to the nominee in case of the policyholder's untimely demise.

The Pradhanmantri Jeevan Bima Yojana is a pure term insurance plan with mortality benefits. There is no investment component attached to the PMJJBY plan. The IndiaFirst Life Pradhan Mantri Jeevan Jyoti Bima Yojana is a simple and straightforward plan which offers a streamlined coverage option for savings bank account holders.

Why should banks consider buying the IndiaFirst Life Pradhan Mantri Jeevan Jyoti Bima Yojana for its customers?

• The IndiaFirst Life Pradhan Mantri Jeevan Jyoti Bima Yojana presents a great way to offer a value-added service to your existing and potential customers. The PMJJBY policy gives you a chance to show your customers that you care about their financial health, from bank account services to life risk coverage. With a single contract, you can easily offer affordable financial protection to cover all your savings account holders.
• In a consumer-driven world, it is not enough to attract customers; you also have to do the work to keep them. The IndiaFirst Life Pradhan Mantri Jeevan Jyoti Bima Yojana works as a customer retention tool.

How does the IndiaFirst Life Pradhan Mantri Jeevan Jyoti Bima Yojana, benefit members?

• The IndiaFirst Life Pradhan Mantri Jeevan Jyoti Bima Yojana offers every member enrolled in the plan standardised risk coverage at a low cost.
• The PM Jeevan Jyoti Bima Yojana does not have an exclusion of any kind, including suicide. Death due to any reason is covered under the PMJJBY policy.
• With any other pure protection term plan, your age would be an essential factor in determining your premium rate. Under the PMJJBY insurance cover, your age has no bearing on the premium amount. The only applicable age criteria are that the account holder has to be between the ages of 18 and 50 at the time of enrolment. The IndiaFirst Life Pradhan Mantri Jeevan Jyoti Bima Yojana offers a fixed premium for a fixed coverage of Rs. 2,00,000 as a death benefit to the nominee.
• Even if you have missed the yearly commencement date of the IndiaFirst Life Pradhan Mantri Jeevan Jyoti Bima Yojana, you can still enrol after paying a pro-rated premium determined by your date of joining.
• Participation in the PMJJBY plan is entirely voluntary.
• Though the Master Policyholder/bank pays the cumulative group insurance premium to the insurer, the amounts are deducted from the members' bank accounts. As such, there are no tax deductions applicable for the Master Policyholder. However, group members can claim deductions under Section 80C of the Income Tax Act of 1961. The death benefit of Rs. 2,00,000 received by the nominee is also tax-free under Section 10(10D) of the Income Tax Act of 1961. These are subject to change from time to time as per Government Tax Laws.

Why should you choose the IndiaFirst Life Pradhan Mantri Jeevan Jyoti Bima Yojana?

• Opportunity to avail of a life insurance cover at an affordable standard rate.
• Protect your family with a life cover of Rs. 2,00,000 in case of unforeseen events
• Save time through this simple process with minimum documentation
• Kickstart your cover with over-the-counter issuance
• Easy process of renewal with auto-debit of the premium from your bank account
• Avail tax benefits under Section 80 C and Section 10(10D) as per prevailing Income Tax Laws

What are the eligibility criteria for Pradhan Mantri Jeevan Jyoti Bima Yojana?

• The member is the life assured under the PMJJBY plan. The minimum age at entry is 18 years as of last birthday.
• The maximum age at entry is 50 years at the nearest birthday under the PMJJBY insurance plan.
• The maximum age at maturity is 55 years at the nearest birthday under the Pradhan Mantri insurance.
• The minimum group size to whom the PMJJBY cover can be offered is 50 members. There is no maximum group size under the IndiaFirst Life Pradhan Mantri Jeevan Jyoti Bima Yojana.
• The PMJJBY insurance cover has a fixed risk cover of Rs. 2,00,000. All members are offered the same terms under the IndiaFirst Life Pradhan Mantri Jeevan Jyoti Bima Yojana.
• There is no maturity or survival benefit payable under the IndiaFirst Life Pradhan Mantri Jeevan Jyoti Bima Yojana.
• The premium amount for the PMJJBY plan will be directly auto-debited from the account holder's savings account held at the participating bank.
• To avail of the PMJJBY coverage, the member's Aadhar card has to be linked to the participating bank account.
• The lien period (time before policy commences) is 45 days from the date of enrolment in the Pradhan Mantri Jeevan Bima Yojana.