The PMJJBY is particularly aimed at providing protection and financial security to the poor and underprivileged, especially in unbanked and remote areas of India, in the unforeseen and unfortunate event of the loss of a family member who is primarily the breadwinner.
Here are features of the Pradhan Mantri Jeevan Jyoti Bima Yojana:
- The life insurance cover remains optional for those who have a savings account with India Post Payments Bank. To open an account under Pradhan Mantri Jeevan Jyoti Bima Yojana, Aadhaar card will remain the primary Know Your Customer (KYC) document.
- The minimum age limit to take the cover is 18 years old, while the maximum age limit is 50 years for the scheme.
- Under this scheme a fixed sum of ₹2 lakh upon the death of the insured member is payable to the nominee. However, no maturity benefit or surrender benefit is payable under the scheme. The cover of Rs 2 lakh comes at less than 1 rupee per day.
- You need to pay a premium of ₹330 per annum, and the scheme will be a one year cover, that can be renewed every year. The fixed timeline will be 1 June to 31 May each year.
- The premium will be deducted from customer's savings account annually. The first premium will depend on the quarter in which scheme is opted. Customer to maintain adequate balance in the account.
- Once the member turns 55 years, the life cover shall terminate.
- Risk coverage: The death benefit will be provided to the nominee of the policyholder on the occurrence of death after 45 days of enrollment. No cooling period is required for the deaths due to accident.
- Also note that tax benefits can be availed on the premium paid under the policy under Section 80C of the Income Tax Act.