The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a simple and affordable term life insurance scheme launched by the central government, specifically designed for the poor and middle class. Under this scheme, you get life insurance cover of ₹2 lakh for an annual premium of just ₹436.
What is the Pradhan Mantri Jeevan Jyoti Bima Yojana?
The Pradhan Mantri Jeevan Jyoti Bima Yojana is a government life insurance scheme operated by the Life Insurance Corporation of India and other insurance companies through banks and post offices. It is a one-year term life policy with the option of annual renewal. The scheme aims to provide financial security to families who cannot afford the burden of expensive insurance premiums.
Insurance cover for death from any cause
The most significant feature of this scheme is that the insurance cover remains effective regardless of the cause of the policyholder’s death. In case of death due to accident, illness, natural disaster, or any other reason, the nominee receives a sum of ₹2 lakh. There are no conditions related to the cause of death, making this scheme extremely reliable.
Who can avail of the PMJJBY?
Indian citizens aged 18 to 50 years with a savings bank account or a post office account can avail of this scheme. NRIs can also join this scheme, provided they have an account in India. However, the claim amount is paid only in Indian Rupees. A person can join this scheme through only one account, even if they have more than one account.
How much is the premium?
The annual premium for the Pradhan Mantri Jeevan Jyoti Bima Yojana is ₹436, which is deducted directly from the bank account through auto-debit. If a person joins the scheme mid-year, the premium is reduced proportionally. However, the full premium is mandatory for renewal every year. This premium is also eligible for tax exemption under Section 80C of the Income Tax Act. Understanding the Lien Period Condition is Important
A 30-day lien period applies to individuals enrolling in the scheme for the first time or re-enrolling. During this period, claims are not accepted in case of non-accidental death. However, in case of accidental death, the insurance amount is payable even during the lien period.
What is the Claim Process?
After the death of the insured, the nominee needs to contact the relevant bank branch or insurance company. The death certificate, the nominee’s KYC documents, a copy of the bank passbook, and, if required, the FIR or post-mortem report must be submitted. If all documents are in order, the claim process is completed quickly.
How to Apply for PMJJBY?
Applications for this scheme can be submitted before May 31st through bank branches, post offices, internet banking, or mobile apps. During the application process, permission for auto-debit must be given, and basic KYC information such as Aadhaar details must be submitted. Many banks offer this facility under the Social Security Schemes section in their mobile apps.
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Why is it More Popular Among Rural Populations and Women?
The Pradhan Mantri Jeevan Jyoti Bima Yojana has over 53 percent participation from women, while approximately 74 percent of the beneficiaries are from rural areas. Due to its low premium, simple rules, and government backing, this scheme is rapidly gaining popularity among common people.