Sunday, June 14, 2015

The Pradhan Mantri Jeevan Jyoti Bima Yojana – Explained

The Pradhan Mantri Jeevan Jyoti Bima Yojana is a Life Insurance product that is being made available for all Indian Citizens by the Hon’ble Prime Minister of India. This policy/product covers the loss of life of the insured individual due to any cause. The purpose of this article is to cover the key details about this scheme that you should know… 

What is this Pradhan Mantri Jeevan Jyoti  Bima Yojana?

As mentioned above, the Pradhan Mantri Jeevan Jyoti Bima Yojana is a life insurance policy that covers the life of the insured individual. The scheme would be offered through Public Sector General Insurance Companies (PSGIC’s) and other General Insurance Companies willing to offer the product on similar terms and with necessary approvals. The scheme is available for purchase through all banks across India. 

Who can enroll in this Pradhan Mantri Jeevan Jyoti  Bima Yojana?

Any Indian citizen with a Savings Account aged between 18 and 50 years can enrol in this scheme. In case an individual has multiple savings accounts with different banks, he/she is eligible to enrol through only one bank account. 

What is the Enrollment Period?

The scheme is a year on year insurance product where the individual is expected to make yearly premium payments in order to keep the policy active. As of now the scheme is available for enrollment until August 2015 and the insurance coverage will start from the 1st of the following month of enrollment for a period of One Year. 

As a policy holder, you can choose to exit the scheme any time you want and sign-up again any time in the future. 

What are the Benefits of this Pradhan Mantri Jeevan Jyoti  Bima Yojana Scheme?

As this is a simple life insurance policy, in case of the death of the insured individual, his/her family will be paid out a sum of Rs. 2 lakhs. 

What is the Yearly Premium for this scheme?

The premium to be paid by individuals will be Rs. 330 per year and the same will be reviewed by the insurance companies based on the claims experience in the coming future. However, the government has instructed the insurance companies to do all they can to ensure that the premiums don't go up drastically. 

The premium can only be paid via Auto-Debit from your Savings Account. No other modes of payment will be accepted. 

Things You Should Know About the Pradhan Mantri Jeevan Bima Yojana:

The following are some key points you should know about this scheme..
You can enrol in this scheme only until the point where you reach 50 years of age
The Insurance Coverage will cease at the point where you reach 55 years of age
The Insurance Coverage will cease at the point where you close your Bank Account or if your account does not have sufficient funds to pay the premium for this scheme 
In case any individual is found to have enrolled in this scheme through multiple banks, only one claim will be entertained. Any premiums paid via other banks shall be forfeited. 
Premiums will be deducted during the month of May every year and the bank will remit the premium on your behalf to the insurance company
The bank through which you signed up will be the Master Policy Holder and all members who have signed up by paying the yearly premium will be subscribers to the same. 

Hope this article helped you get an understanding of the Pradhan Mantri Jeevan Jyoti  Bima Yojana. You may still have some unanswered questions about this scheme. The next article will help you get those answered… 

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