In India, Life Insurance has always been considered as an investment vehicle but this is only true for the endowment plans. The problem with the endowment plans is that these insurance plans have a high premium amount. Because of high premium, term insurance came into the picture and they quickly gained a lot of popularity. The insurance plans offered coverage but their value at maturity was zero. In addition to this, the advantage of these term insurance plans is that these insurance plans were very much affordable.
All About Pradhan Mantri Jeevan Jyoti Bima Yojana 2019
The problem in India is that a lot of people couldn’t even afford the term insurance offered by the insurance companies and hence the government came up with Pradhan Mantri Jeevan Jyoti Bima Yojana. Here are the details about this amazing insurance offered by the government.
What is Pradhan Mantri Jeevan Jyoti Bima Yojana
Under this scheme, life insurance can be bought by paying a premium of Rs 330 and this insurance covers the applicant for a period of 1 year. In addition to this, the insurance covered offered by the insurance scheme is Rs 2 Lakhs. This has made life insurance really affordable for the people and a lot of people who otherwise couldn’t afford life insurance were now a part of the insurance scheme. It is certainly easy to apply for the scheme as there are no medical checks required either.
How will the Scheme Work?
The scheme can be purchased from the bank and once you enroll in the scheme, the payment of the premium needs to be made regularly. In addition to this, the applicant would have to make the payment annually failing which the insurance would be canceled. Apart from this, the payment can be made manually or the applicant may choose for an auto debit facility from the bank as well.
Another point that you must be aware of is that the insurance will automatically be terminated when the applicant reaches the age of 55 and if an applicant has multiple insurances then those multiple accounts would also be terminated by the government of India.
What is the Eligibility Criteria for the Scheme?
The eligibility criteria to enroll under Pradhan Mantri Jeevan Jyoti Bima Yojana is
- The scheme is valid for the people who are between 18 to 50 years of age.
- The scheme is valid only for Indian citizens and the person also needs to have a valid Aadhaar card and valid account number.
- If a person has many bank accounts then the person can only enroll for scheme once.
How to Apply for the Scheme?
Follow the steps mentioned below to apply for Pradhan Mantri Jeevan Jyoti Bima Yojana –
- The applicant would need to visit the bank where they have a bank account.
- After visiting the bank, the applicant can obtain the consent form for Pradhan Mantri Jeevan Jyoti Bima Yojana.
- The applicant would then need to sign the form and fill in the details on the form to complete the application procedure for the insurance plan
What are the Benefits of the Scheme?
The benefits of the insurance offered by the government are –
- The insurance will offer risk mitigation to the people of India as the insurance offers life cover to the people enrolled in the scheme.
- The insurance will also offer a tax deduction to the people as the premium paid is tax deductible.
- In case of death of the applicant, the family will receive the coverage amount and this could help the family in starting a new life.
Who will back the plan?
The plan is being backed by the government of India and LIC is the main insurance provider for the scheme. In addition to this, the banks have extended full support for the scheme as well.
Details of the scheme
Scheme Name – Pradhan Mantri Jeevan Jyoti Bima Yojana
Scheme Launched by – Mr. Narendra Modi
Scheme Launch Date – 9 May 2015
Is this the way forward for the nation?
It is really a great step taken by the government by launching this scheme as there was a huge chunk of the population who didn’t have insurance available to them. In addition to this, the scheme would offer financial security to the families of the people if they die in an unfortunate event. The government should definitely allow this scheme to run till perpetuity.