Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), policy, terms & conditions details

A pure term insurance policy for the people, full details

The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a one-year life insurance scheme offering coverage for death due to any reason. The scheme is renewable from year to year and is available to all the savings bank account holders in the participant banks who give their consent to join and enable auto-debit. The cover under this scheme is for death only and hence benefit will accrue only to the nominee. PMJJBY is pure term insurance policy and there is no maturity or surrender benefit under this plan.

The Pradhan Mantri Jeevan Jyoti Bima Yojana will be made available to anyone between the age group of 18 to 50 years. The concerned person should also have a bank account. People, who avail of this policy before they are 50 years old, will be allowed to enjoy the risk of life cover till the age of 55 years. However, they will need to pay the premium on a consistent basis in order to be provided for that benefit.

The policyholders will need to pay INR 330 per year. The amount will be deducted each year from their bank account in a single installment. This will be done by the bank from where the policy is being opened.

The risk coverage being provided in the Pradhan Mantri Jeevan Jyoti Bima Yojana INR 2 lakh. In case the policy has been availed for a longer term period than just a year, the amount will be deducted for each year of the agreed term period from their respective bank accounts.

The policy will come to an end once the holder reaches the age of 55 years. However, for this to be effective the policyholder will need to keep renewing the policy until that time. If the account holder has to close his or her account in the bank, where the policy is being maintained, because of the paucity of sufficient funds to even maintain the minimum balance needed to ensure the policy is active, then the insurance policy will be closed as well.