India is one such country where people often ignore Life Insurance Services because of the high premium. The trend has significantly changed because of the availability of term insurances but the insurance covers are still beyond the affordability for the people with the weak economic background. This had to be changed and hence the government came up with Pradhan Mantri Jeevan Jyoti Bima Yojana. This scheme offers life insurance cover to the people at a very low premium and it is one such scheme every person should enroll for. Here are all the details about the scheme.
What is Pradhan Mantri Jeevan Jyoti Bima Yojana?
As mentioned earlier, the scheme offers a life insurance to the citizen of India at a very low cost and hence it is affordable for the people who are not strong financially. This works like any other insurance plan and the premium needs to be paid on the annual basis to avail the cover. In case of mishappening, the nominee can go ahead and claim for the cover. The insurance company now has a tie-up with the bank to provide citizens with this insurance cover.
The insurance cover is for Rs 2 Lakh which can only be availed after the death of the primary applicant. The claim for the insurance is processed by the bank after the submission of the valid documents. In addition to this, the premium amount for the applicant here is Rs 330 per year.
How Pradhan Mantri Jeevan Jyoti Bima Yojana Work?
Any person willing to avail the insurance can opt for it by simply visiting the bank and signing the consent form. The premium will be deducted from the bank account on annual basis and the cover will be offered until the premium is paid. The banks are providing this service in sync with the insurance cover and it is not mandatory to take the insurance. The nominee is declared at the time of purchasing the insurance for the first time and the amount of the insurance can be claimed by the nominee of the insurance holder.
What is the Eligibility criteria for the Jeevan Jyoti Bima Yojana?
The eligibility criteria for the scheme is mentioned below
- The insurance can only be purchased by Indian citizen who is between 18 years and 50 years of age.
- It is mandatory to have a saving account in any bank to avail this insurance policy and the customer should be KYC compliant. It should also be noted that the Aadhaar card should be linked to the bank account to avail the benefits of the scheme.
- It is also mandatory for the applicant to sign the consent form and provide the nominee details.
How to apply for Jeevan Jyoti Bima Yojana?
The application procedure for applying for Pradhan Mantri Jeevan Jyoti Bima Yojana is mentioned below
- If a person has a bank account then he can simply walk into the bank and obtain a form for Jeevan Jyoti Bima Yojana.
- Once the form has been obtained, he can fill in his account details along with the nominee details on the form and submit the form to the bank official.
- The applicant can choose for self-renewal or auto-renewal for the policy. It should be noted that many of the banks also offer this insurance policy through their online banking portal which basically eliminates the need of visiting the branch.
What are the benefits of Jeevan Jyoti Bima Yojana?
The benefits of the scheme are –
- The scheme provides insurance to the masses at a really low premium and hence a lot of people will be encouraged to take up the insurance scheme.
- The insurance will also provide financial security to a lot of families and this could help the family in setting up a small business after the death of the breadwinner of the family.
- The insurance premium also comes with a tax benefit for Indian citizen
Who will back the plan?
The plan is being backed by the central government.
Details of the scheme
Name of the Scheme – Pradhan Mantri Jeevan Jyoti Bima Yojana
Date of Launch – 1st June 2015
Budget For scheme – NA
Scheme Launched by – PM Narendra Modi
Is this the way forward for the nation?
The government is trying hard for financial inclusions and other such benefits to the people. In addition to this, this is a really good initiative to offer some sort of security to the people. The scheme is certainly helping people in hard times and the government should launch more such insurance policies for the public.