In the last union budget finance minister Mr. Arun Jaitley has shown his worry towards the basic insurance coverage of every Indian citizen. As part of universal social security system, he has proposed another scheme Pradhan Mantri Jeevan Jyoti Bima Yojana along with Pradhan Mantri Suraksha Bima Yojana.
According to his words,
“A large proportion of India’s population is without insurance of any kind, health, accidental or life. Worryingly, as our young population ages, it is also going to be pension-less. Encouraged by the success of the Pradhan Mantri Jan Dhan Yojana (PMJDY), I propose to work towards creating a universal social security system for all Indians that will ensure that no Indian citizen will have to worry about illness, accidents or penury in old age”
Benefits & Criteria to open Pradhan Mantri Jeevan Jyoti Bima Yojana
Eligibility: Any Indian citizen within the age group of 18 to 50 is eligible. But one needs to have a bank account to avail this. People who joins the scheme before completing 50 years can continue to have the coverage up to the age of 55 years subject to payment of premium.
Premium Amount: The amount for premium is even less than a rupee per day (Rs.330 per annum). It will get auto-debited in single instalment.
Coverage: The amount for death coverage is Rs. two lakh. Both natural & accidental death is covered under this scheme.
Terms of Risk Coverage: The scheme needs yearly renewal, means the person should opt for this scheme every year. He/she can also opt for long-term continuation option. In that case the bank will will auto-debit the account every year.
Payment Mode for Premium: Bank will auto debit the premium amount directly from the subscribers account.
Nomination facility: Yes, nomination facility is available. In-case of unfortunate event of death of the policyholder, the nominee will get the death benefit.
Documents Needed: As per the government notification, a copy of the Aadhar card is needed and also enough to subscribe to this scheme.
Don’t Miss: Documents Needed for Sukanya Samriddhi Scheme
Who will implement: Jeevan Jyoti Bima Yojana scheme will be offered by Life Insurance Corporation (LIC) India. Other life insurance providers also can join the scheme by tying-up with banks for this purpose.
(i) Various other Ministries can co-contribute premium for various categories of their beneficiaries out of their budget or out of Public Welfare Fund created in this budget out of unclaimed money. This will be decided separately during the year.
(ii) Common Publicity Expenditure will be borne by Government.
You can check the official notification here.
Income Tax Benefits: The premium paid towards this scheme is eligible for tax deduction under section 80C.
Don’t Miss: Sukanya Samriddhi Account Tax Benifits