Many people hesitate to buy life insurance in India due to the high cost of insurance premiums. Especially since insurance companies have increased their premium rates after the COVID-19 pandemic, making insurance policies even more expensive for the common man.
In this context, the central government has focused on introducing low-cost insurance schemes. The most important of them is the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY). This scheme is available for a premium of just ₹436 per year, which is just ₹36 per month. The objective of the PMJJBY scheme is to provide life insurance cover at an affordable price to everyone, including the economically weaker sections. It is a good way to help in financial security.
The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a low-cost insurance scheme that provides life insurance cover in case of death due to any reason. This scheme is a major step of the central government to provide financial security to every citizen of the country. It is managed by LIC and other recognized insurance companies. The scheme is for a period of one year and is renewable every year. The scheme is implemented with the necessary approvals and agreements with the banks. The partner banks are free to engage any life insurance company for the purpose of implementing the scheme for their account holders.
Who can take this insurance?
Citizens between the ages of 18 and 50 can avail the benefits of this scheme. If a person has one or more accounts in different banks/post offices, the person has to pay the premium of this insurance through only one account. To avail this insurance, Aadhaar must be linked to the bank account. If there is no balance of Rs 436 in your bank account, your insurance may be automatically cancelled. If the insurance is cancelled, you will not be able to avail the benefits of this scheme. For this reason, the bank is warning the customers by sending messages.
How much insurance is available under this scheme?
Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) aims to provide financial security to economically backward and low-income families across India. Under this scheme, by paying a premium of just ₹436 per year (i.e. ₹36 per month), the beneficiaries will get life insurance cover of ₹2 lakhs. This insurance provides financial assistance to the family in the event of unavoidable events such as accident or natural death. It provides financial assistance to the family in case of medical expenses or hardship due to…
Claim Settlement Process – The family or nominee of the deceased person should follow these steps to claim death insurance under PMJJBY:
Bank Contact:
First, the nominee should contact the bank where the deceased person had his savings bank account. Submit his death certificate to the bank.
Application Form Collection:
Then, the nominee should obtain the insurance claim form and discharge receipt from the bank, insurance company branches, hospitals or insurance agents and official websites.
Submission of Application:
The claim form, discharge receipt, death certificate and nominee’s bank account details (or each of the cancelled cheques) should be submitted together with the application.
Insurance Company Decision:
The designated office of the concerned insurance company will verify all these documents and settle the claim.
If this process is followed properly, the nominee can easily get the death insurance amount.
Premium Payment Period
The premium payable for this plan varies based on the month of registration. It is determined on a pro-rata basis.