PMJJBY – Pradhan Mantri Jeevan Jyoti Bima Yojana

Life is uncertain, but securing your family’s future shouldn’t be. The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a Government of India-backed, low-cost life insurance scheme that offers simple and affordable life cover to every eligible Indian. Aimed at ensuring financial protection for families in case of the policyholder’s untimely death, this one-year renewable policy is accessible through participating banks and post offices, and implemented by LIC and other approved life insurers.

Whether you’re just beginning your financial journey or looking to strengthen your family’s safety net, PMJJBY provides an easy way to secure peace of mind without straining your budget a step towards responsible financial planning for every household.

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Details of Pradhan Mantri Jeevan Jyoti Bima Yojana

Launched under the Jan Suraksha initiative by the Government of India, the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a pure term life insurance plan designed to make life cover accessible to everyone.

• Type: Term life insurance (valid for one year and renewable annually).
• Objective: To provide an affordable life insurance cover for individuals aged between 18 and 50 years who hold a bank or post-office savings account. The policy can be renewed each year as per the scheme’s terms.
• Coverage: Offers financial support to the nominee in case of the insured person’s death, ensuring the family’s financial stability during difficult times.
• Delivery: The enrolment and premium collection are handled by banks or post offices, while the scheme itself is administered by the Life Insurance Corporation of India (LIC) and other approved life insurers in partnership with these institutions.
• Purpose: With a low annual premium and a simple claim process, PMJJBY aims to spread financial inclusion and social security across India giving every household a safety net for life’s uncertainties.

Key Features of PMJJBY

1. Affordable Coverage:

PMJJBY offers an insurance cover of ₹2 lakh at an annual premium of just ₹436 making it one of the most economical life insurance options in India. This low-cost protection ensures that even individuals from rural or low-income backgrounds can afford life cover for their families. The premium amount is uniform for all subscribers, ensuring equality and simplicity. With such affordability, PMJJBY brings the security of life insurance within reach for every Indian household.

2. Simple Enrollment:

Joining PMJJBY is quick and hassle-free. All you need is a savings bank account with a participating bank or post office. The enrolment can be done online or by submitting a short consent form, without the need for medical tests or lengthy documentation. The entire process is designed to be user-friendly, so even first-time policyholders can register easily. This straightforward approach encourages more people to adopt financial protection early in life.

3. One-Year Renewable Protection:

The policy provides coverage for one year, from June 1 to May 31, and can be renewed annually by paying the premium before the due date. This renewable structure gives policyholders the flexibility to continue or discontinue the scheme as per their convenience. Renewals are completely seamless, requiring no fresh paperwork each year. It’s a simple, year-on-year commitment to safeguard your family’s financial future.

4. Auto-Debit Premium Payment:

To make the process effortless, the annual premium is auto-debited directly from your bank account, ensuring continuous coverage without the risk of missed payments. This automatic renewal process keeps the policy active with zero administrative burden. The auto-debit feature saves time and avoids the stress of remembering renewal dates. It ensures that your family remains protected without any lapse in coverage.

5. Wide Accessibility:

PMJJBY is available across all major banks, regional rural banks, cooperative banks, and post offices, in partnership with LIC and other approved insurers. This wide network ensures that people from every corner of the country can easily enrol and benefit from the scheme. Whether you live in a metropolitan city or a small village, PMJJBY offers the same easy access and benefits. This nationwide reach reinforces the government’s vision of inclusive financial security for all.

Break-up of the Premium

The premium for PMJJBY is kept very low (fixed amount collected annually per the notified rate). Premium rates and the exact sum-assured may be reviewed based on claims experience and regulatory decisions the scheme rules allow periodic review. For the exact current premium and sum assured, always check with your bank/post office or the official PMJJBY page.

Eligibility Criteria (Who Can Join PMJJBY?)

1. Age:

Any individual between 18 and 50 years of age (nearest birthday) can enrol in the PMJJBY scheme. Once enrolled, coverage can continue beyond 50 years through annual renewals as long as the premium is paid regularly. This age bracket ensures that working individuals can secure their family’s future at the right time.

2. Account Requirement:

The applicant must have a savings bank account in a participating bank or post office. The insurance premium is auto-debited from this account each year, so maintaining sufficient balance is essential for uninterrupted coverage. This integration with the banking system ensures smooth premium collection and easy management.

3. Consent for Auto-Debit:

To activate the scheme, the subscriber must provide explicit consent for auto-debit of the annual premium or fill out a short enrolment form. This consent allows automatic renewal of the policy every year, avoiding manual follow-ups or paperwork. It also ensures that the policy remains active without any delay in payments.

4. Medical Requirement:

Unlike most traditional insurance plans, PMJJBY does not require any medical examination before enrolment. Applicants only need to provide a self-certification of good health, making it easier for people from all walks of life to join. This simplified health declaration ensures wider participation and quicker enrolment.

5. Exclusions:

Standard insurance exclusions apply under the scheme, such as cases involving fraud, false information, or specific policy exclusions. It’s important to read the consent form and master policy carefully to understand the terms and conditions. Staying transparent and informed helps ensure smooth claim settlements in the future.

How to Enrol for PMJJBY Scheme

1. Visit Your Bank or Post Office: Approach the bank or post office where you hold a savings account.

2. Fill Up the Form: Submit the PMJJBY application form, available both online and offline.

3. Provide Consent: Give your auto-debit mandate to allow the annual premium deduction.

4. Submit Documents: Provide basic KYC details and account information as required.

5. Get Confirmation: Once approved, you’ll receive confirmation, and your coverage starts immediately.

How Does PMJJBY Work?

Once you enrol in PMJJBY and the annual premium of ₹436 is auto-debited from your bank account, your life cover becomes active for one year from June 1 to May 31.

In the unfortunate event of the insured person’s death during this period (from natural or accidental causes as covered under the scheme), the nominee receives a lump sum of ₹2 lakh as the insurance benefit.

The bank or post office acts as the master policyholder, coordinating between the subscriber and the insurer (LIC or other approved companies). The nominee needs to submit the claim form, death certificate, and KYC documents to the bank, after which the insurer verifies and releases the claim amount.

To continue the coverage, the policyholder must renew the plan each year by ensuring the premium is auto-debited before the due date keeping the protection uninterrupted.

Benefits of Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)

1. High Coverage at Low Cost:

PMJJBY offers a life insurance cover of ₹2 lakh at an annual premium of just ₹436, making it one of the most affordable protection plans in the country. The low-cost nature of the scheme ensures that even individuals with modest incomes can provide their families with financial security. This affordable coverage bridges the gap between need and accessibility, especially for first-time policyholders. It empowers every Indian to secure their loved ones without worrying about high insurance costs.

2. Instant Financial Security:

In the unfortunate event of the policyholder’s death (natural or accidental), the nominee receives a lump-sum payment of ₹2 lakh. This immediate financial support helps the family manage essential expenses and maintain stability during difficult times. The payout ensures that dependents are not left financially vulnerable after the loss of an earning member. This feature makes PMJJBY a crucial safety net for households across both rural and urban India.

3. No Medical Check-Up Required:

One of the biggest advantages of PMJJBY is its no medical examination requirement. Anyone in good health can join the scheme by submitting a self-declaration form, eliminating the stress of medical screening. This feature makes the policy inclusive and accessible to a larger section of society. It’s particularly beneficial for those who may not qualify for traditional insurance plans due to cost or health concerns.

4. Tax Benefits:

The premium paid under PMJJBY qualifies for tax deductions under Section 80Cof the Income Tax Act, subject to applicable laws. This not only provides life coverage but also helps in effective tax planning for individuals. For salaried and self-employed people alike, the scheme doubles as both a protection and a savings tool. Always consult your tax advisor for the latest updates on exemptions and limits.

5. Easy and Transparent Claim Settlement:

The claim process under PMJJBY is quick, simple, and handled through your bank, ensuring convenience for the nominee. Once the required documents such as the claim form, death certificate, and KYC are submitted, the insurer verifies the details and releases the amount directly to the nominee’s account. The transparent process ensures that families receive timely financial aid without delays or confusion. This reliability builds trust and strengthens the scheme’s social impact.

Conclusion

PMJJBY is a government-backed, low-cost life insurance scheme that ensures financial protection for every Indian family. With easy enrollment through banks or post offices and a simple claim process, it serves as a practical first step toward building financial security. The scheme bridges the gap for those seeking affordable life cover while promoting financial inclusion across urban and rural India. For those looking to strengthen their overall financial plan, Motilal Oswal’s advisory team can guide you with expert insights on insurance and investment strategies tailored to your goals.