Life insurance is a bounded contract between a policy owner and an insurance company. This contract guarantees that the insurer pays an amount of money to the beneficiaries when the insured person dies in exchange for the premiums paid by policyholder. PMJJBY, or the Pradhan Mantri Jeevan Jyoti Bima Yojana, is the life insurance with which one can secure their family’s future.
It is the plan that offers-
- Security for covering an eventuality.
- Simplicity for easy enrollment and proper processing.
- Affordability as one can avail of nominal premiums across all ages.
PMJJBY is a government-initiated insurance policy, and the scheme is offered for over a tenure of 1 year. It can also be renewed after every year. This life insurance offers annual coverage of two lakhs in case of the policyholder’s unfortunate passing away during the policy term. The most appealing part of this life insurance is that it can be availed at the lowest premium rate of Rs. 330 per annum.
Things to Consider About PMJJBY Insurance Policy-
1. Tax benefit.
The premium paid towards the policy is officially applicable for tax exemption under section 80C of the income tax act.
2. Risk coverage.
PMJJBY is life insurance that offers coverage against the risk for one year. It can also be renewed annually. The insurance holder can also choose a longer tenure of around more than one year. One has the option of selecting auto-debit linked to the savings account of the policyholder.
3. Right from the date of initiation of the policy, PMJJBY offers coverage for a term period of one year. The policyholder has the power to renew the coverage of the PMJJBY term plan every year up to 55 years of age.
One also has the option of discontinuing the policy by not renewing it.
4. Enrollment period.
The enrollment period of the Pradhan Mantri Jeevan Jyoti Bima Yojana is from June 1st of each financial year to June 31st of the following year. The subscribers are required to enroll and submit their auto-debit consent during this period.
- Two lakhs is the coverage offered by the PMJJBY and it is offered to the beneficiary of the scheme in case of the uncertain death of the policyholder during the policy tenure. The claim settlement process of this life insurance is hassle-free and easy.
- One major benefit of this Yojana is that the individual can get a coverage of Rs 2 lakh at a minimal premium rate of Rs 330 per annum. The rate of premiums remains the same for almost all subscribers of the age groups ranging from 18 years to 50 years.
7. Payment mode.
The premium of this life insurance policy is auto-debited each month from the savings bank account and its renewal period is May 25th – May 31st. If one wishes to discontinue the scheme, then, they should submit a cancellation application for stopping the deduction of the premium payment.