What is the premium amount for PMJJBY and how is it paid?  

In the landscape of financial security and insurance policies in India, the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) stands out as a significant government-backed scheme designed to bring life insurance coverage within the reach of the masses. 

Launched with the intent to increase the penetration of life insurance among Indians, especially the underprivileged and economically weaker sections, PMJJBY offers a safety net to families in the unfortunate event of the demise of the breadwinner. This article delves into the nuances of the PMJJBY, including the premium amount, the process of premium payment, and the benefits it brings to policyholders.

Understanding PMJJBY

The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a life insurance scheme available to people in the age group of 18 to 50 years, who have a bank account and are willing to join/participate through this account. The scheme offers a renewable one-year term life insurance cover of Rs. 2 lakh in case of death due to any reason, providing financial protection to the beneficiary of the policyholder.

The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a significant initiative by the Government of India, aimed at bringing affordable life insurance to the masses. Launched on May 9, 2015, by Prime Minister Narendra Modi in Kolkata, PMJJBY was introduced alongside two other major social security schemes: the Pradhan Mantri Suraksha Bima Yojana (PMSBY) for accidental death and disability cover, and the Atal Pension Yojana (APY) for unorganised sector workers.

The inception of PMJJBY was driven by the government’s vision to extend life insurance coverage to the vast majority of the Indian population, particularly those in the unorganised sector or with low income, who were largely uncovered by any form of life insurance. The scheme aimed to fill this gap by providing a simple, accessible, and highly affordable insurance product.

Benefits of PMJJBY

• Financial Security: Offers financial security to the family of the deceased policyholder.
• Affordable Premiums: Designed to be affordable to a large segment of the population.
• Ease of Enrollment: Straightforward enrollment process through participating banks.
• Wide Coverage: Coverage against death due to any reason, providing a broad safety net.
• Government-Backed: Assurance and reliability of a scheme backed by the Indian government.

Premium Amount and Policies for PMJJBY

• Premium Amount: The premium for PMJJBY is Rs. 330 per annum per member.
• Payment Mode: The premium is auto-debited in a single instalment from the policyholder’s bank account.
• Coverage Period: The coverage is for one year, starting from June 1 to May 31 of the subsequent year, with the option for yearly renewal.
• Risk Coverage: Provides risk coverage of Rs. 2 lakh in case of death due to any reason.
• Eligibility: Available to people in the age group of 18 to 50 years with a bank account.

Paying the Premium for PMJJBY

Step 1: Bank Account

• Ensure you have a bank account with a participating bank. The PMJJBY is linked to your bank account, making it the primary requirement for joining the scheme.

Step 2: Consent for Auto-debit

• Provide your consent for the auto-debit of the premium amount from your bank account. This is usually done through a form provided by the bank when you opt into the scheme.

Step 3: Completion of Enrollment Form

• Fill out the PMJJBY enrollment form available at your bank or through the bank’s Internet banking portal. The form requires basic details such as your name, Aadhaar number (optional), and the nominee’s details.

Step 4: Health Declaration

• As part of the enrollment form, provide a health declaration stating that you do not suffer from any critical illnesses at the time of enrolling for the scheme.

Step 5: Submit the Form

• Submit the completed enrollment form to your bank. If you’re enrolling through internet banking, the form can usually be submitted online.

Step 6: Check Account Deduction

• Once enrolled, the premium amount of INR 330 will be automatically debited from your bank account annually before or on May 31, ensuring your coverage continues uninterrupted for the next year.

Step 7: Acknowledgment

• After the premium is debited, you will receive an acknowledgement or a certificate of insurance from the bank, confirming your enrollment in the scheme. Download PMJJBY certificate for documentation. 

Step 8: Renewal

• The PMJJBY is renewable annually. Ensure that your bank account has sufficient funds before the renewal date (May 31) for the auto-debit of the premium for the subsequent year.

Step 9: Update Personal Details

• Keep your bank informed of any changes in your details or nominee information to ensure the policy remains up-to-date.

Conclusion

The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) embodies the Indian government’s vision of a socially inclusive society where financial security is accessible to all, irrespective of their economic standing. 

With its low premium, ease of enrollment, and substantial coverage, the scheme extends a lifeline to families, providing them with a semblance of financial stability in the face of adversity. For the vast population segment that remains outside the ambit of conventional life insurance, PMJJBY is not just a policy but a beacon of hope, ensuring that the most vulnerable are not left unprotected in their hour of need. 

By following the straightforward steps to pay the premium, individuals can ensure their continued participation in this vital scheme, safeguarding their family’s future and contributing to the nation’s journey towards inclusive growth and development.