PMJJBY: Life is inherently unpredictable, and it is impossible to foresee the circumstances that may arise. Consequently, individuals should be equipped to handle unforeseen events. Health insurance, term insurance, and life insurance can provide essential support to families during such times. However, the high premiums associated with these policies often render them unaffordable for low-income individuals.
Pradhan Mantri Jeevan Jyoti Bima Yojana
For these individuals, the government’s Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) offers a viable solution. This term insurance plan provides financial assistance to families in the event of the policyholder’s demise. The premium for this government initiative is set at a remarkably low rate, making it accessible to those earning between Rs 5,000 and Rs 10,000 per month.
Financial support up to Rs 2 lakh
Key features of this scheme include a financial payout of up to Rs 2 lakh to the family of the deceased policyholder, which can significantly alleviate their financial burdens during challenging times. To benefit from this government program, an individual needs to pay an annual premium of just Rs 436. This translates to a monthly saving of approximately Rs 36, making it manageable for most. The insurance plan is available to individuals aged 18 to 50 years. The coverage period for the PMJJBY plan runs from June 1 to May 31, meaning that while enrollment can occur at any time throughout the year, coverage will only be valid until May 31, necessitating renewal on June 1.
Benefits of the scheme
To access the benefits of this scheme, it is essential to have a bank account. If the policyholder opts for Automatic Renewal during registration, the annual premium of Rs 436 will be automatically deducted from their account between May 25 and May 31 each year. Those interested in obtaining this policy can acquire the application form from their respective banks, which will also require the account holder’s consent for the automatic deduction of the premium.