Term insurance helps your family financially in your absence. Common people buy it but poor people cannot afford it. For such people, the government runs a scheme whose premium is so low that even people with ordinary income can afford it.
One cannot predict when and what situation will come in front of someone in life. Therefore, every person should be prepared to face unexpected situations. In such a situation, health insurance, term insurance and life insurance etc. come in handy for the family. Also, their premiums are so expensive that the poor and needy people cannot afford them.
For such people, the government’s Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) can be useful. It is a term insurance scheme that provides financial support to your family in your absence. The premium of this government-run scheme is so low that even those earning Rs 5,000-10,000 per month can easily buy it. Know the special things related to this scheme.
You can buy it by saving Rs 36 per month.
Under this government scheme, in the event of the death of the policyholder, his family is given financial assistance of up to Rs 2 lakh. This assistance can meet many needs of the family during difficult times. If any person wants to take advantage of this government scheme, he will have to buy this plan by paying only Rs 436 annually. 436/12=36.3 means that if a person saves even Rs 36 per month, he can easily pay his annual premium.
Who can purchase the plan?
Any person between the ages of 18 and 50 can buy this insurance plan. The cover period of PMJJBY insurance scheme is from June 1 to May 31. That is, you can buy it in any month of the year, but you will get the cover only till May 31. You will have to renew it again on June 1. To avail the benefit of the scheme, it is necessary to have a bank account. If you have chosen automatic renewal while registering under this scheme, then Rs 436 of the policy is automatically deducted from your account between May 25 and May 31 every year.
No medical examination required.
You do not need any kind of medical test to take this policy. The consent form of the insurance policy mentions some diseases. You have to mention in the declaration that you are not suffering from those diseases. If your declaration is proved wrong, then your family will not get the benefit of this scheme. Apart from this, you can also get the benefit of tax deduction under section 80C on the amount deposited as insurance premium in this scheme.
How to take advantage of it
If you want to take this policy, you can get its form from the bank where you have your account. Through this form, the consent of the account holder is sought whether he is ready to deduct money from his account for the policy or not. After this, the bank does all the rest of the work. Apart from this, some banks have started providing the facility of this policy through net banking and some through SMS.
Registration Terms
- If you are going to apply for this scheme of the Government of India, you must have Aadhaar card, identity card, bank account passbook, mobile number and passport size photo.
- Since your identity is verified through Aadhaar, you will need to link your bank account number with Aadhaar number.
- You can avail the benefits of Pradhan Mantri Jeevan Jyoti Bima Yojana through only one of your bank accounts. Moreover, this policy cannot be linked to any other account.