Introduction
Life insurance is often ignored until it is too late. To ensure that every Indian family has access to basic life cover, the Government of India launched PM Jeevan Jyoti Bima Yojana (PMJJBY).
PMJJBY is one of the most affordable life insurance schemes in India, offering coverage at a very low annual premium. In this article, we will explain PMJJBY benefits, eligibility criteria, premium amount, coverage details, and claim process in simple terms.
If you are looking for a low-cost life insurance option for yourself or your family, this guide will help you decide whether PMJJBY is right for you.
What is PM Jeevan Jyoti Bima Yojana (PMJJBY)?
PM Jeevan Jyoti Bima Yojana (PMJJBY) is a government-backed term life insurance scheme launched in 2015. The scheme provides life insurance coverage in case of the policyholder’s death.
The objective of PMJJBY is to offer financial security to families, especially those from low-income and middle-income groups, at an affordable cost.
Key Features of PMJJBY
- Low annual premium
- One-year renewable life insurance policy
- Death coverage of ₹2 lakh
- Linked to bank account
- Available through banks and post offices
- Easy enrollment and claim process
PMJJBY Benefits Explained
1. Life Insurance Coverage
PMJJBY provides a life insurance cover of ₹2 lakh in case of death of the insured person, irrespective of the cause of death (natural or accidental).
This amount is paid to the nominee registered in the policy.
2. Extremely Low Premium
One of the biggest benefits of PM Jeevan Jyoti Bima Yojana is its affordability.
- Annual premium: ₹436 per year
- Premium is auto-debited from the linked bank account
Compared to private life insurance plans, PMJJBY is one of the cheapest life insurance schemes available in India.
3. Easy Renewal
PMJJBY is a one-year policy, renewable every year.
- Coverage period: 1st June to 31st May
- Auto-renewal option available
- No paperwork required every year
As long as the premium is paid on time, the policy continues.
4. Simple Enrollment Process
Enrolling in PMJJBY is simple and hassle-free.
You only need:
- A savings bank account
- Aadhaar-linked bank account (preferred)
- Consent for auto-debit
Enrollment can be done through:
- Banks
- Post offices
5. Tax Benefits
The premium paid under PMJJBY is eligible for tax deduction under Section 80C, subject to applicable income tax rules.
The death benefit received by the nominee is also tax-free under current laws.
PMJJBY Eligibility Criteria
To enroll in PM Jeevan Jyoti Bima Yojana, you must meet the following eligibility conditions:
Age Limit
- Minimum age: 18 years
- Maximum age: 50 years
The policy can be renewed up to the age of 55 years, provided you enrolled before turning 50.
Bank Account Requirement
- You must have an active savings bank account
- Premium is deducted automatically from the account
Only one PMJJBY policy per person is allowed, even if you have multiple bank accounts.
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PMJJBY Premium Details
| Particulars | Details |
| Annual Premium | ₹436 |
| Payment Mode | Auto-debit |
| Coverage Amount | ₹2,00,000 |
| Policy Period | 1 year |
| Renewal | Automatic |
Premium amount may be revised by the government in the future, but changes are notified in advance.
PMJJBY Coverage Period
- Policy starts from 1st June
- Ends on 31st May of the following year
- New enrollments allowed before 31st May
If you enroll mid-year, coverage starts from the date of premium deduction.
PMJJBY Claim Process
The PMJJBY claim process is simple and designed to minimize delays.
Step-by-Step Claim Process
- Nominee informs the bank where the policyholder had the account
- Claim form is submitted
- Death certificate is provided
- Bank forwards documents to insurance company
- Claim amount is credited to nominee’s bank account
Most claims are settled within a few weeks if documents are complete.
PMJJBY vs Private Life Insurance
| Feature | PMJJBY | Private Life Insurance |
| Premium | Very Low | Higher |
| Coverage | ₹2 lakh | Flexible |
| Medical Test | Not Required | Often Required |
| Renewal | Annual | Long-term |
| Customization | Limited | High |
PMJJBY is ideal for basic coverage, while private insurance is better for higher protection needs.
Who Should Buy PMJJBY?
PM Jeevan Jyoti Bima Yojana is best suited for:
- Low-income families
- First-time insurance buyers
- Daily wage earners
- People without any life insurance
- Individuals looking for affordable protection
It should be seen as a foundation insurance, not a replacement for large-term plans.
Limitations of PMJJBY
While PMJJBY has many advantages, it also has some limitations:
- Coverage amount is limited to ₹2 lakh
- Not sufficient for sole breadwinners
- Annual renewal required
- No maturity or survival benefit
Understanding these limitations helps in making informed decisions.
Common Myths About PMJJBY
Myth: PMJJBY is only for poor people
Fact: Anyone meeting eligibility can enroll
Myth: Claim settlement is difficult
Fact: Claims are straightforward if documents are correct
Myth: It covers accidental death only
Fact: It covers death due to any reason
FAQs – PM Jeevan Jyoti Bima Yojana
What is the coverage amount under PMJJBY?
PMJJBY provides a life insurance cover of ₹2 lakh.
What is the premium for PMJJBY?
The annual premium is ₹436 per year.
Is PMJJBY mandatory?
No, it is a voluntary insurance scheme.
Can I have more than one PMJJBY policy?
No, only one policy per person is allowed.
Is PMJJBY available for senior citizens?
Enrollment is allowed up to age 50, with renewal up to age 55.
Conclusion
PM Jeevan Jyoti Bima Yojana (PMJJBY) is a powerful example of affordable social security in India. For a small annual premium, it provides essential life insurance protection to millions of families.
While the coverage amount may not be sufficient for everyone, PMJJBY is an excellent starting point for those who currently have no life insurance.
