by In a bid to extend financial security to a wider section of the population, the Indian government introduced the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), a one-year renewable life insurance scheme that offers coverage for death due to any reason. This initiative has made life insurance accessible and affordable for millions of people across the country.
Eligibility for PMJJBY
One of the most remarkable features of PMJJBY is its inclusivity. All savings bank account holders aged between 18 to 50 years in participating banks are entitled to join this scheme. This broad eligibility criteria ensure that a substantial portion of the population can avail of the benefits of life insurance.
Generous Insurance Coverage
Upon joining PMJJBY and paying the premium, subscribers receive life insurance coverage of Rs. 2,00,000 (2 lakhs). This substantial coverage amount can provide much-needed financial protection to the insured person’s family in the event of their untimely demise.
The Lien Clause
While PMJJBY offers comprehensive coverage, it also incorporates a prudent safeguard. A 30-day lien clause may be imposed in the scheme. Under this clause, any claims arising from the insured person’s death within the first 30 days from the date of enrollment will not be paid, except in cases of death due to an accident. This clause is designed to prevent misuse of the insurance by those who might join the scheme with a pre-existing terminal illness.
Affordable Premium Payment
Affordability is a key aspect of PMJJBY. The annual premium for this scheme is a mere Rs. 436. This amount is deducted from the subscriber’s savings bank account through the ‘auto-debit’ facility. The convenience of auto-debit ensures that subscribers do not have to remember to make payments manually, making it easier for them to maintain their coverage. The premium deduction typically takes place on or before May 31st of each year during the annual coverage period, subject to the availability of funds in the bank account.
On death due to any reason of the subscriber, the registered nominee will be eligible to get Rs 200,000/- in his/her savings account” essentially outlines a key feature of the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), which is an Indian government-sponsored life insurance scheme.
