Pradhan Mantri Jeevan Jyoti Bima Yojana Review

What is Pradhan Mantri Jeevan Jyoti Bima Yojana?

The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a one year Term Life Insurance Scheme. It offers financial protection against sudden death due to any reason natural or accidental.

In this scheme, a person has to pay Rs 330 insurance premium. If he dies, his beneficiary will get upto Rs 2 lakhs insurance cover.

PMJJBY is for one year. The person has to renew it every year.

What is Term Life Insurance and why is it needed?

Life is unpredictable.

When death will strike us we do not know. But it will surely come. So we have to prepare for the fact that if we die suddenly, our family should be provided for sufficiently.

A Term Life Insurance is one such method where a person pays a certain amount every year till a certain time. If he were to suddenly expire before that, his family will receive a lump-sum amount as compensation. If he is alive till after that, he will not get back anything, but can look back with satisfaction that he had covered all the angles.

A Term Life Insurance (like Pradhan Mantri Jeevan Jyoti Bima Yojana) provides compensation in case of sudden death due to any reason.

What are the benefits of Pradhan Mantri Jeevan Jyoti Bima Yojana?

This scheme provides risk coverage upto Rs 2 lakhs in case of sudden death for any reason which can be natural or accidental.

Eligibility

  • Only Savings Bank account holders are eligible for PMJJBY.
  • They have to be between 18 and 50 years.

Policy Period

The cover shall be for a period of 1 year starting from 1st June 2015 to 31st May 2016. After that it will be renewable on a yearly basis.

Premium

The premium for PMJJBY is Rs 330 per year.

Payment Mode

Amount will be automatically debited (deducted) from the person’s Savings Bank Account

Terms & Conditions and Exclusions

  • A customer should not be insured in Pradhan Mantri Jeevan Jyoti Bima Yojana under any other Savings Bank Account.
  • The policy does not cover death by suicide.

A Few Last Words

I hope you found this article useful. If you have any comments please feel free to contact me.

Before making any investment decision, please contact your financial adviser. I have provided this article for educational purpose only.

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Reference

Subhodeep Mukhopadhyay

I am a Management Consultant in the Education Sector. In my previous corporate career, I have worked in Banking, Private Equity and Software industry. I am an MBA in Finance/ Computer Engineer and enjoy doing equity research and financial analysis in my free time.

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