The Indian government introduced the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), a life insurance program with government backing, in 2015. The initiative aims to provide the general public with reasonably priced life insurance coverage. We’ll talk about how effectively PMJJBY is made to help you in this article.
What is PMJJBY?
A 2 lakh rupee life insurance cover is provided to the insured through the PMJJBY life insurance program. Anyone between the ages of 18 and 50 is eligible for the program, which can be renewed yearly. The plan is renewed annually and carries a 330 rupee premium.
The PMJJBY program is widely accessible throughout the nation and is administered by insurance firms from the public and commercial sectors. The fact that any bank or insurance provider can sell the policy makes it available to a sizable portion of the population. The policyholder has the option to withdraw from the program at any time, and it is renewed annually.
How is PMJJBY put to use?
The goal of PMJJBY is to offer life insurance protection to as many people as possible, particularly those who cannot afford to pay exorbitant life insurance rates. Anyone between the ages of 18 and 50 is eligible for the program, which can be renewed yearly.
Any policyholder who passes away will leave a nominee with a benefit of Rs. 2 lakhs. The annual premium for the plan is automatically taken out of the policyholder’s bank account.
Advantages of PMJJBY
- Cost-effective Premium
PMJJBY aims to offer affordable life insurance coverage to the general public. In comparison to other life insurance plans on the market, the scheme’s annual premium of Rs. 330 is quite inexpensive. People from all walks of life can access it due to the inexpensive premium, especially those who cannot afford the high life insurance premiums.
- Simple Method
PMJJBY enrollment is a relatively easy process. Just finish the form, fill in your bank account details, and send it to your bank. The annual premium for the plan is automatically taken out of the policyholder’s bank account. Every year, the plan may be renewed by paying the premium.
Life Cover PMJJBY provides the insured with Rs. 2 lakhs life insurance policy. In case of uncertainty, a benefit of Rs. 2 lakhs would be given to the nominee. In the event of a tragedy, this gives the nominee financial stability and guarantees that their family’s requirements would be met.
- Renewal Choice
Since PMJJBY is a renewable plan, the premium can be paid to renew the insurance each year. This guarantees that the policyholder and their family will always get the program’s benefits.
In general, the Indian government’s Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a well-designed program to offer reasonably priced life insurance coverage to the general public. A crucial part of the government’s initiatives to achieve inclusive growth and development, the program has been successful in fostering financial inclusion and offering social security to the populace. It is a simple program that anyone may join, regardless of background.