What is Pradhan Mantri Jeevan Jyoti Bima Yojana?

India Post Payments Bank (IPPB) has partnered with PNB MetLife India Insurance Company Limited to roll out Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY). The PMJJBY offers life cover, i.e. provides financial protection in the case of death of the insured person due to any cause. 

The objective of the scheme is to provide a universal social security net for the needy and disadvantaged sections of society. J Venkatramu, CEO of IPPB, stated that the scheme could be looked upon as affordable insurance for this segment of the population. 

We have compiled all the information regarding PMJJBY you would want to know:

1. Optional Service: The scheme is an optional service for all the savings account holders with IPPB.

2. Age Limit: The applicant must be aged between 18 years and 50 years.

3. Premium: The applicant must pay an annual premium of Rs.330.

4. Validity: The scheme provides coverage for one year; it can be renewed. There is a fixed timeline for the scheme, i.e. from 1 June to 31 May every year.

5. Benefits: A fixed sum of Rs.2 lakh will be paid to the nominee in the event of the death of the insured. However, maturity benefit and surrender benefit are not payable.

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6. Mode of Payment: The premium will be deducted from the applicant’s savings account. However, the first premium amount may vary based on the quarter in which subscription for the scheme is made. The applicant must make sure to maintain the necessary balance in the account.

7. Termination: The policy will lose its effect or will be terminated once the insured attains 55 years of age.

8. Cooling Period: A cooling period of 45 days is applicable from the date of enrollment. That is, the death benefit will only be paid to the nominee in the case of death of the insured after 45 days of enrollment. However, the cooling period is not applicable in the case of death due to an accident.

9. Tax Benefit: The customer can avail income tax benefits on the premium paid towards the policy under Section 80C of the Income Tax Act, 1961.

Note that the eligible candidates must submit a copy of the Aadhaar card as the primary document to complete the KYC process to open an account under the PMJJBY.

For any clarifications/feedback on the topic, please contact the writer at apoorva.n@cleartax.in