If hefty insurance premiums have been a reason for not taking life insurance, then here is some good news for you. Now you can get a life cover of Rs 2 lakh for as little as Rs 330 per annum. Known as the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), this scheme was launched by the Government of India to offer benefits of insurance to masses. The scheme was launched for offering affordable universal access to essential protection in a convenient manner.
It is a one year cover, renewable from year to year. It is administered through LIC and some other private life insurance companies. You may also approach your banks as for the process of enrolment, banks have tied up with insurance companies.
Here are the salient features of PMJJBY:
1. Eligibility: Individual bank account holders of the participating banks aged between 18 years and 50 years can join the scheme. In case of multiple bank accounts held by an individual in one or different banks, the person would be eligible to join the scheme through one bank account only. Aadhaar would be the primary KYC for the bank account.
2. Master Policy Holder: Participating banks will be the master policy holders.
3. Premium: Rs 330 per annum per member for insurance up to Rs 2 lakh. The premium will be deducted from the account holder’s bank account through ‘auto debit’ facility in one instalment, as per the option given, on or before 31st May of each annual coverage period under the scheme. Delayed enrolment for prospective cover after 31st May will be possible with full payment of annual premium.
4. Policy period: From 1st June to 31st May of subsequent year.
5. Benefits: Rs 2 lakh is payable on the member’s death due to any cause.
6. Exit: Individuals who exit the scheme at any point may re-join the scheme in future. The exclusion of insurance benefits during the lien period shall also apply to subscribers who exit the scheme during or after the first year, and rejoin on any date on or after 01st June.
7. Termination of Assurance: The assurance on the life of the member shall terminate on any of the following events and no benefit will be payable under the following scenarios:
# On attaining age 55 years (age neared birth day) subject to annual renewal up to that date (entry, however, will not be possible beyond the age of 50 years).
# Closure of account with the bank or insufficiency of balance to keep the insurance in force.
# In case of multiple coverage under the scheme, insurance cover will be restricted to Rs 2 lakh and the premium shall be liable to be forfeited.
# If the insurance cover is ceased due to any technical reasons such as insufficient balance on due date or due to any administrative issues, the same can be reinstated on receipt of full annual premium, subject however to the cover being treated as fresh and the 45 days lien clause will be applicable.