Pradhan Mantri Jeevan Jyoti Bima Yojana Life Insurance Plan-Review
In recent budget 2015-16, Finance minister has announced a new life insurance scheme Pradhan Mantri Jeevan Jyoti Bima Yojana for poor and low income group. Premium for this Govt. promoted life insurance scheme is Rs 330 per annum. What are the features of Pradhan Mantri Jeevan Jyoti Bima Yojana life insurance? Should you subscribe to this new life insurance Jeevan Jyoti Scheme promoted by Govt of India?
Features of Pradhan Mantri Jeevan Jyoti Bima Yojana Life Insurance Plan
- This is simple a life insurance coverage plan which covers normal risk and accidental benefit risk.
- Max sum assured is Rs 2 Lakhs
- Age of entry is 18 to 50 years of age.
- Premium payable is Rs 330 per annum which is very low compared to other existing term insurance plans.
- Premium is equal for all age groups of 18 to 50 years. This is one more unique features of this scheme.
- This scheme is promoted by Govt. Of India and operated by Life Insurance Corporation of India (LIc). Other private life insurance companies can also join, however, they need to tie-up with State Bank of India (SBI).
FAQ’s of Pradhan Mantri Jeevan Jyoti Bima Yojana
When this scheme would open for subscription?
This scheme would open for subscription from 1st June, 2015.
What is the premium charged for this life insurance plan?
The premium is Rs 330 per annum, which is same for all age groups.
Can we join this life insurance scheme after 50 years of age?
Maximum age entry of this scheme is 50 years. One cannot join this scheme after 50 years.
Is this scheme active till 50 years of age only?
This scheme age of entry is 50 years. However, one can keep this life insurance plan active till 55 years of age provided they join this scheme before 50 years of age and pay annual premiums on time.
Who would be nominee under this life insurance scheme?
While applying for this scheme, one can provide nomination scheme for this life insurance scheme. In case of unfortunate death of the life insured, sum assured would be paid to the nominee of the life insurance plan.
How to open Pradhan Mantri Jeevan Jyoti Bima Yojana life insurance plan?
An individual who has Aadhar linked bank account can provide simple application to Life Insurance Corporation of India (LIC) to apply for this scheme. This scheme would open for subscription from 1st June, 2015. You can opt for auto debit facility where annual premium would be auto debited from your account. You need to keep renewing this plan every year.
What are the tax benefits of Pradhan Mantri Jeevan Jyoti Bima Yojana life insurance plan?
The premium paid is eligible for tax deduction u/s 80C of income tax act. In case of unfortunate death of life insured, any life insurance proceeds in excess of Rs 1 Lakh would attract a 2% TDS in case they have not submitted any Form 15G / Form 15H.
Should you subscribe to Pradhan Mantri Jeevan Jyoti Bima Yojana?
There is no doubt this is a very good scheme promoted by Govt. of India, which offers life insurance for very low premium. You can consider this life insurance scheme. However, if you observe, the sum assured of Rs 2 Lakhs is very low in this generation. You can consider this as additional life insurance coverage. You can suggest this option for your friends / relatives / house-maids at home / your drivers who are in low income group. Premium of Rs 330 per annum is nothing. You can give this as a special gift to them by buying this and gifting it to them on their behalf.
Readers, what is your view on this Pradhan Mantri Jeevan Jyoti Bima Yojana life insurance plan promoted by Govt. of India?
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Pradhan Mantri Jeevan Jyoti Bima Yojana Life Insurance Plan