Pradhan Mantri Jeevan Jyoti Bima Yojana - PMJJBY


 
 
Concept Explanation
 

Pradhan Mantri Jeevan Jyoti Bima Yojana - PMJJBY

PRADHAN MANTRI JEEVAN JYOTI BIMA YOJANA : The central government of India has launched a new life insurance scheme, Pradhan Mantri Jeevan Jyoti Bima Yojana for the growth of the poor and low income section of society. As a pure term insurance plan, Pradhan Mantri Jeevan Jyoti Bima Yojana, is available for people between the age group of 18-50 years.PMJJBY is a renewal term insurance policy that, provides a yearly life insurance coverage of Rs.2,00,000 in case of the demise of the insured person, at the most affordable premium rate of Rs.330 per annum.Benefits:

  • Death Benefit- In case of demise of the insured person, the PMJJBY provides a death coverage of Rs. 2,00,000 to the beneficiary of the policy.
  • 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 for one 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 the savings bank account.
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