Introduction
The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a life insurance scheme launched by the Government of India to provide financial support to families of the insured in the event of their untimely death. It has been designed for people who are looking for a simple and affordable insurance plan. This article provides an insight into what PMJJBY entails, how it works, its benefits, and its recent developments.
What is PMJJBY?
PMJJBY is essentially a life insurance scheme that provides a cover of Rs. 2 lakhs to the nominee of the insured in case of their death due to any reason. Launched on May 9, 2015, the scheme is managed by the Life Insurance Corporation of India (LIC) and is open to all citizens of India between the ages of 18 and 50 years. The scheme aims to increase the number of people covered under life insurance and provide a minimal safety net to the families of those who die unexpectedly and contribute to the overall social security of the country.
How does PMJJBY work?
To enroll in the PMJJBY scheme, a person is required to have an active savings bank account through which their premiums will be deducted annually in June. The premium amount is Rs. 330 per annum and covers the insured for a period of one year from June 1st to May 31st of the following year. In case a person enrolls in the scheme after June, they will be required to pay a pro-rata premium amount for the remaining months of the year.
While enrolling in the scheme, the insurance applicant is required to provide the name of the nominee who will receive the sum assured in case of their death. The nominee can be changed at any time during the policy period by making a written request to the bank.
Benefits of PMJJBY
PMJJBY offers several benefits to insurance applicants and their beneficiaries, including the following:
1. Cost-effective: The premium amount for PMJJBY is Rs. 330 per annum, making it an extremely affordable insurance scheme for the masses.
2. Easy enrollment process: The enrollment process for PMJJBY is hassle-free and can be done through any participating bank branch or online.
3. High cover amount: The sum assured under PMJJBY is Rs. 2 lakhs, which provides financial security to the families of the insured in case of their unfortunate demise.
4. No medical examination required: PMJJBY does not require the applicant to undergo any medical examinations or provide any medical certificates, making it an attractive option for those who may not be able to afford other life insurance plans.
5. Tax benefits: The premiums paid under PMJJBY are tax-deductible under Section 80C of the Income Tax Act.
6. Nominee facility: PMJJBY allows the policyholder to nominate any person of their choice as the beneficiary or nominee in case of their death.
Recent developments in PMJJBY
In its continued efforts to increase the reach of PMJJBY, the Government of India has made several recent developments, including the following:
1. Extension of enrollment date: The enrollment date for PMJJBY has been extended to August 31, 2021, due to the COVID-19 pandemic.
2. Increased awareness campaigns: The government has increased its awareness campaigns for PMJJBY through various mediums such as television, radio, and social media platforms.
3. Easing of documentation requirements: The government has simplified the documentation required for enrolling in PMJJBY to make it more accessible to the masses.
4. Streamlining of claims process: The government has taken steps to streamline the claims process under PMJJBY to ensure timely disbursement of funds to the beneficiaries of the insured.
Conclusion
PMJJBY, or Pradhan Mantri Jeevan Jyoti Bima Yojana, is an excellent initiative by the Government of India to provide life insurance at an affordable premium to the masses. It offers numerous benefits to both the insured and their beneficiaries and has the potential to provide financial security to millions of families across the country. The recent developments in the scheme are a welcome move by the government to make it more accessible and user-friendly, and one can hope that such initiatives will continue to attract a large number of people to enroll in the scheme. Additionally, individuals can complement their financial security with a suitable health insurance policy, ensuring comprehensive coverage for themselves and their loved ones.