Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY): Affordable Life Insurance for All

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The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a government-backed life insurance scheme launched in 2015, offering financial protection to families upon the unfortunate demise of the insured person. Its key focus is providing affordable and accessible life insurance coverage to India’s vast population.

Understanding PMJJBY

  • Eligibility: All bank account holders between the ages of 18 and 50 are eligible to enroll in PMJJBY.
  • Sum Assured: The scheme provides a life cover of Rs. 2 lakhs upon the policyholder’s death due to any reason.
  • Premium: The annual premium for PMJJBY is a very affordable Rs. 436, which is automatically deducted from the policyholder’s bank account.
  • Enrollment Period: The scheme offers a one-year coverage period, renewable year after year.

Benefits of PMJJBY

  • Financial Security for Families: In the event of the earning member’s death, PMJJBY offers a much-needed financial safety net to the family.
  • Affordable Coverage: With its low premium, PMJJBY makes essential life insurance accessible to low-income groups often excluded from traditional insurance plans.
  • Simple Enrollment Process: The enrollment process is linked to bank accounts, enabling vast participation.
  • No Medical Examination: Unlike many insurance plans, PMJJBY doesn’t require a medical examination, making it accessible to all.

Example

A daily wage laborer enrolls in PMJJBY, paying the annual premium of Rs. 436. Unfortunately, he passes away in an accident a few months later. His family receives the sum assured of Rs. 2 lakhs, providing financial support during a difficult time.

FAQs About PMJJBY

  • How do I enroll in PMJJBY? You can enroll through your bank or post office branch where you have a savings account.
  • Can I cancel my PMJJBY policy? Yes, you can opt out of the scheme before the annual renewal date.
  • What is the claim process for PMJJBY? The nominee needs to submit a claim form along with supporting documents (such as a death certificate) to the bank where the deceased had the savings account.

MCQs

  1. The sum assured under PMJJBY is:
    • A. Rs. 1 lakh
    • B. Rs. 5 lakhs
    • C. Rs. 2 lakhs
    • D. Rs. 10 lakhs
  2. The annual premium for PMJJBY is:
    • A. Rs. 436
    • B. Rs. 1200
    • C. Rs. 5000
    • D. Rs. 2500