PM Jeevan Jyoti Bima Yojana is a government-sponsored life insurance scheme that would provide citizens with financial protection. This scheme was taken by the Indian government as a boon for those desirous of life insurance at an affordable rate and with easy enrollment. The basic idea is to provide life insurance to people from all walks of economic life free from complications.
- The PM Jeevan Jyoti Bima Yojana assures that in case of a policyholder’s death, the family is left with some sort of financial support.
- Launched in 2015 as part of the government’s initiative to bring social security to the weaker sections
- It is the best option for those who are not in a position to invest in expensive insurance policies but want to safeguard the future of their families.
What is PM Jeevan Jyoti Bima Yojana?
PM Jeevan Jyoti Bima Yojana is a life insurance scheme open to Indian citizens between the ages of 18 and 50 years. The policy offers a life cover of INR 2 lakhs at an annual premium of just INR 436. The policy is renewable every year. In case the insured person dies, the sum assured is paid to the nominee. This scheme is specifically designed for the low-income population so that they have an insurance facility at their disposal without fail and in line with the government’s financial inclusion.
Eligibility Criteria of PM Jeevan Jyoti Bima Yojana
The following eligibility criteria must be satisfied to avail benefits under PM Jeevan Jyoti Bima Yojana:
- The age must lie between 18 and 50 years.
- There must be a savings bank account.
- Consent for auto-debit of the annual premium from the bank account must be provided.
- Account holders need to give valid nominations.
Features of PM Jeevan Jyoti Bima Yojana
PM Jeevan Jyoti Bima Yojana provides a life cover of amount Rs.2 Lacs at the meager premium of only Rs 436 every year. This guarantees that there would be a financially secure existence for the loved ones of the policyholder if something adverse were to befall. Also, anyone can apply for this as well as its renewal through his/ her savings bank account maintained in the bank in case of an individual, from his savings account post office, State Bank of India, or Punjab National Bank if the account is operative, otherwise through normal application and can get an advantage. Scheme has some extremely attractive features to reach its objective. Few are:
Small Premium
The scheme provides a low annual premium of INR 436 for life cover, thereby covering people from all strata of society so that even low-income families are protected for their future if the insured dies.
Life Coverage
The scheme provides for a life cover of INR 2 lakh, which will be paid to the nominee in case of the policyholder’s death. This would help the family overcome the financial crunch by providing immediate support at a critical time of loss and uncertainty.
Eligibility Criteria
Any Indian citizen with a savings bank account within the age bracket of 18 and 50 years will be eligible for the plan. The procedure is relatively simple, so it reaches all sections of the population more effectively, particularly those not covered by life insurance.
Renewal Procedure
The policy is annually renewable. The premium will be auto-debited from the savings account of the policyholder. This reduces the risk of lapses in the policy and ensures continuous coverage without requiring renewal every year.
Easy Enrollment
It is not difficult to join the PM Jeevan Jyoti Bima Yojana as it involves minimal paperwork. Anyone interested can walk into the bank, fill out a simple application, and give his consent for auto-debit of the premium from his savings account for hassle-free enrollment.
Government-Backed
Since it is a government-guaranteed scheme, therefore this source provides comfort and the scheme can be trusted for life insurance coverage. With this, the comfort of knowing the scheme is government-sponsored keeps chasing an inclusive financial scheme plan for all.
Advantages PM Jeevan Jyoti Bima Yojana
There are lots of benefits to subscribers within the PM Jeevan Jyoti Bima Yojana. Such are;
- Financial security: The family is financially assisted in case the insured dies, so they do not become financially insolvent.
- Low premium: It is one of the cheapest life insurance schemes available in India at just INR 436 per year.
- Government-backed: The fact that it is backed by the government gives it credibility and reliability.
- Easy enrollment process: The process is simple and does not require any complicated paperwork.
- Fast settlement: In case of a tragedy, the nominee will have no problem claiming the assured amount by submitting all relevant documentation.
How to Sign up for PM Jeevan Jyoti Bima Yojana?
PM Jeevan Jyoti Bima Yojana’s registration process is very straightforward. Here’s how you sign up for the scheme
- Go to your bank through which you have your savings account.
- Fill in an application form and give out all the required details.
- Provide authorization for annual premium auto-debit from your account.
- After this form is processed, your policy gets activated, and you are covered with life insurance for one year.
Difference of PM Jeevan Jyoti Bima Yojana and Other Programs
| Feature | PM Jeevan Jyoti Bima Yojana | PM Suraksha Bima Yojana | Atal Pension Yojana |
|---|---|---|---|
| Type of Insurance | Life Insurance | Accident Insurance | Pension Scheme |
| Eligibility | Citizens aged 18-50 years | Citizens aged 18-70 years | Citizens aged 18-40 years |
| Coverage Amount | INR 2 lakh | INR 2 lakh (Accidental Death) | Varies, based on contribution |
| Annual Premium | INR 436 | INR 20 | Contribution-based |
| Payout | Paid to nominee upon death | Paid for accidental death or disability | Monthly pension after retirement |
| Focus | Life insurance for policyholder’s family | Accident-related incidents | Retirement income security |
| Government-backed | Yes | Yes | Yes |
| Renewal | Annually | Annually | Contribution until 60 years |
Importance of PM Jeevan Jyoti Bima Yojana
This PM Jeevan Jyoti Bima Yojana is a very important scheme for families that depend on a single breadwinner. When the death is untimely, the financial burden becomes unbearable. The scheme provides families with at least some financial aid to deal with the current situation without sinking into debt or poverty.
Financial Security
In other words, the scheme provides much-needed financial security to the insured family, especially in case the breadwinner dies. Thus, it ensures that at least INR 2 lakh is paid to the beneficiaries, which can meet immediate expenses during difficult times.
Available to All
Life insurance can now be affordable by the poor and the most economically vulnerable sections, especially at a premium of merely INR 436 per annum, and thereby increasing coverage for low-income and high-income groups alike.
Simple Enrollment Proces
The fact that one can enroll for the product through banks with auto-debit of the premiums makes participation easy and does not require complicated paperwork. This ease will ensure increased participation from rural to urban citizens, thus increasing coverage in life insurance.
Boosts Financial Literacy
The scheme helps promote financial literacy by taking people, especially those from rural and underprivileged regions, into the fold of formal banking and insurance processes. It also educates citizens about the value of life insurance and how to be equipped to plan for future family needs.
Government Supported Trust
PM Jeevan Jyoti Bima Yojana is the state-backed program which gives a participant the best reliability and transparency. Increased trust by the government of such schemes is thought to drive more population towards life insurance for improvement in their monetary security.
Problems with PM Jeevan Jyoti Bima Yojana
Despite having too many advantages of PM Jeevan Jyoti Bima Yojana, some problems are attached with it too:
Unawareness
- Fewer people are enrolling because there are many eligible applicants-mostly in rural communities with a lack of knowledge about the scheme.
- More awareness-raising strategies are needed across the board to educate every citizen concerning the scheme as well as how easily it can be accessed.
Not enough coverage value
The sum assured of INR 2 lakh might not be sufficient for the families as living costs are very high in urban areas. Therefore, in such situations, loss of a bread earner will not be supported financially.
No Dependence on Banks
The success of the scheme lies in the banks processing the applications and premiums efficiently. Non-renewal of policies can be due to delay or errors in handling paperwork or auto-debit processes, affecting the coverage of many people.
Annual Renewal Requirement
Though the auto-debit facility makes renewal easier, a person can suffer from lapses in policies if the amount in the savings account is not sufficient at the time of deduction of premium, and he or she will be left without coverage for that year.
PM Jeevan Jyoti Bima Yojana in Rural Areas
The impact of PM Jeevan Jyoti Bima Yojana in rural areas is very deep. In most parts of India, especially in villages, life insurance remains an unaffordable commodity for people. It helps those people get cheap life insurance and gives them comfort; however, more extensive publicity campaigns are needed in these remote areas to gain attention.
Conclusion
The PM Jeevan Jyoti Bima Yojana is a significant effort to ensure that each one in India has life cover. Its low premium makes it an attractive scheme toward those seeking financial security in the event of a probable future loss for their kith and kin. Much work needs to be done, though, to enlighten people about this benefit, and the process must also be streamlined so that more number of people can be taken in under the scheme.
