The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a government scheme launched on 9th May 2015 by PM Narendra Modi in Kolkata.
This scheme was established to provide life insurance security to the poor and low-income section of the society. It is basically a death coverage.
This scheme can be availed by people aged between 18 years to 50 years. They must have a bank account to be eligible for this scheme. It is also mandatory for the beneficiary to link their Aadhaar card to their bank accounts while availing this scheme.
Anyone who joins the scheme before completing 50, will have the risk of life cover up to the age of 55 years subject to the payment of premium.
In case of the death of the insured person, the next eligible beneficiary is provided with a death benefit, including a debt coverage of ₹2,00,000. Being a pure term insurance scheme, it doesn’t offer any maturity.
The premium for this scheme was ₹330 per annum, which is to be auto debited in one installment before 31st May of each annual coverage period under the scheme.
A person must opt for the scheme every year. He can also prefer to give a long term option of continuing, in which case his account will be auto debited every year by the bank.
The scheme will be offered by the Life Insurance Corporation and all other life insurers who are willing to join this scheme and tie-up with banks for this purpose.
The premium paid towards the policy is applicable for tax exemption under section 80C of the Income Tax Act.
As for the recent development, the insurance premium prices have been increased by the government. Begun on June 1, 2022, the new rates had been in effect. PMJJBY now costs ₹436 instead of ₹330.
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