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The PMJJBY is available to people in the age group of 18 to 50 years having a bank account who give their consent to enable auto-debit. Aadhar would be the primary KYC for the bank account. The life cover of Rs. 2 lakhs shall be for the one year period stretching from 1st June to 31st May and will be renewable. Risk coverage under this scheme is for Rs. 2 Lakh in case of death of the insured, due to any reason. The premium is Rs. 330 per annum which is to be auto-debited in one installment from the subscriber’s bank account as per the option given by him on or before 31st May of each annual coverage period under the scheme. The scheme is being offered by Life Insurance Corporation and all other life insurers who are willing to offer the product on similar terms with necessary approvals and tie up with banks for this purpose.
The cover period is 1st June of each year to 31st May of subsequent year. For the cover period 1st June 2018 to 31st May 2019, subscribers are required to enroll and give their auto-debit consent by 31st May 2018. Those joining subsequently would be able to do so with payment of full annual premium for prospective cover.
This is how the break-up of the premium works
Death Benefit In case of demise of the insured person the PMJJBY provides a death coverage of Rs2,00,000 to the beneficiary of the policy.
Maturity Benefit As this is pure term insurance plan, PMJJBY does not offer any maturity or surrender benefit.
Tax Benefit The premium paid towards the policy is eligible for tax deduction under section 80C of Income Tax Act. In case the insurance holder fails to submit form 15 G/15 H then any life insurance proceeds exceeding Rs. 1,00,000 will be taxable by 2%.
Risk Coverage PMJJBY provides risk coverage of 1 year. Nevertheless, as this is renewable policy it can be renewed yearly. Moreover, the policyholder can also opt for a longer duration more than a year by auto debit option linked to your saving bank account.
Risk cover under PMJJBY is applicable only after the first 45 days of enrolment. In other words, insurers do not have to settle claims during the first 45 days from the date of enrolment. However, deaths due to accidents will be exempt from the lien clause and will still be paid.
The death claim will be settled by the designated Office of Insurance Company concerned. The process followed will be as under:
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