The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a government-backed life insurance scheme in India, launched by the Prime Minister of India. The scheme is designed to provide affordable life insurance coverage to people in India, particularly those in the economically weaker sections of society. Here are some key features and details of PMJJBY:
1. Eligibility : Any Indian citizen between the ages of 18 to 50 years can enroll in PMJJBY.
2. Enrollment : To enroll in the scheme, individuals need to have a savings bank account and provide their consent for auto-debit of the premium from their bank account on an annual basis.
3. Premium: The premium for PMJJBY is very affordable, making it accessible to a wide range of people. The premium is typically around Rs. 436 per year, and it is deducted automatically from the subscriber's bank account.
4. Coverage : PMJJBY provides life insurance coverage of Rs. 2 lakh in case of the insured person's death due to any reason. This means that if the insured person passes away, the nominee will receive a lump sum payment of Rs. 2 lakh.
5. Renewal: The coverage under PMJJBY is annual and needs to be renewed every year by paying the premium. Subscribers can continue to renew the policy until they reach the age of 55.
6. Nomination : Subscribers are required to nominate a beneficiary (nominee) who will receive the insurance payout in case of the insured person's demise.
7. Claims Process : In the unfortunate event of the insured person's death, the nominee can claim the insurance amount by providing the necessary documents and completing the claims process.
8. Government Backing : PMJJBY is administered by Life Insurance Corporation of India (LIC) and other private insurance companies. The scheme is backed by the Government of India.
9. Income Tax Benefits : Premiums paid for PMJJBY are eligible for a tax deduction under Section 80C of the Income Tax Act.
PMJJBY aims to provide financial security to the families of the insured individuals in case of their untimely demise. It is a part of the Indian government's broader financial inclusion and social security initiatives to ensure that even economically vulnerable sections of society have access to essential insurance coverage.
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