After a big success of UAN, Pradhan Mantri Jan Dhan Yojna, Sukanya Samriddhi Scheme, Mudra scheme, PM Narendra Modi is now heading towards newer milestones by launching schemes for financial security of the people. As on May 09, 2015, they launched a Life Insurance scheme and Accidental insurance scheme. The Life Insurance Scheme namely, Pradhan Mantri Jeevan Jyoti Bima Yojana targets the entire population of India, be it a Salaried, Small businessmen, farmer, labourers or any other. Let us have a look at various features of this scheme
Features of PMJJBY
It is a Term Insurance which will cover life of an individual. No amount will be received in case of well being of an individual hence it is a pur life insurance covering the risk of death of an individual for its family. On the death of an individual, the amount will be paid to its nominee as mentioned while taking the policy.
The policy will be for the period of one year, as may extended on the payment of premium every year. The period of the coverage for initial year will be from Jun 01, 2015 to May 31, 2016.
The Scheme will be implemented by LIC and marketed through banks/ bank mitra. However, it is kept open for other Life Insurers also to opt for it in case they wish to. Also Bank may also tie up with LIC or any other Insurer for implementing this scheme.
Eligibility for PMJJBY
Anyone between the age of 18 to 50 years of age and with a saving bank account. However people who have joined the scheme before attaining the age 50 may continue till the age of 55 years.
It is important to note, even in case where one is already covered through other life insurance from term insurance, endowment plans, ULIPs or under any group life insurance schemes, you still be eligible to be a member of this scheme.
Benefits of PMJJBY
The subscriber will get a risk cover for an amount of Rs. 2 lacs on death due to any reason.
How to opt for PMJJBY
You need to approach the participating banks for the same, preferably where you have your bank account. It is important to note that you may opt for this scheme through one bank account only. Adhaar will be the primary KYC for the bank account.
Termination of Policy
The policy shall stand terminated in case of –
On the attainment of the age of 55 Yrs.
Insufficient fund in your bank for auto debit of premium.
In case, an individual covered under this scheme through more than one savings account. In this case, insurance coverage will be restricted to Rs.2 lakh only.
Closure of your Bank Account.
As per my individual opinion, it is a great initiative launched by the Government. It will not only cover lower class but will also very useful for middle class community. Keeping premium as low as Rs. 330 premium, it is acts as wonderful tool for financial inclusion and financial security. I feel, all of us must take the benefit of this scheme and secure our families from unexpected situations.