Pradhan Mantri Jeevan Jyoti Bima Yojana

Pradhan Mantri Jeevan Jyoti Bima Yojana Features:

Eligibility

This scheme is available for the person falling in the age group of 18 years to 50 years and should have bank account. If the account is opened before attaining the age of 50 years, the life cover would remain intact up to the age of 55 years, if premium is paid regularly.

How to Subscribe to the Scheme?

Interested person shall require to first link their Aadhaar card with the bank account. Once it is done, a simple form is to be filled every year and to be submitted to the bank before 1st of June, in order to avail the benefit of this scheme.

Nomination

Nominee name is to be given in the form along with relationship. In case the nominee is minor, name of the guardian is also to be given.

Annual Premium

Premium payable for this scheme is Rs.330 per year i.e. less than Rs.1 per day.

Payment Mode of Premium

The annual premium will have to be paid at once instance and will be directly auto-debited from your bank account. There are no other methods of paying premium.

Risk Coverage

The risk cover is of Rs.2 lakhs in case of death for any reason i.e. natural or accidental.

Term of Coverage

The risk cover comes with two options:

1. The policy holder is required to renew the policy each year and the premium will be auto-debited from his bank account.
2. Policy Holder can also opt for longer term say 2 years to 4 years and each year his bank account will be auto-debited for the premium payable.

Where to get this Scheme?

All the public sector general insurance companies such as LIC will offer this scheme. Other private insurers can also offer this scheme but has to tie-up with the banks such as SBI.

Any Contribution by the Government?

Government contribution towards this scheme will be decided separately each year. The contribution will come from the unclaimed money lying idel in various public welfare fund.

Taxation

The premium paid will be tax-free under section 80C and also the proceeds amount will get tax-exemption u/s 10(10D).

But if the proceeds from insurance policy exceed Rs.1 lakh and no Form 15G or Form 15H is submitted to the insurer, there shall be deduction of TDS at the rate of 2% from the total proceeds.