PMJJBY: The 330 Rupees Insurance Scheme

The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a new life insurance scheme for the growth and development of the poor and lower-income fraction of society.

This 330 rupees insurance scheme is a pure term insurance plan for the tenure of one year and renewable from year-to-year. Despite being quite a popular scheme, many remain unaware of its full scope. This article will cover the key features of the Pradhan Mantri Jeevan Jyoti Bima Yojana scheme.

Features of Pradhan Mantri Jeevan Jyoti Bima Yojana

Enrolment period

You can enroll for the Pradhan Mantri Jeevan Jyoti Bima Yojana from June 1st of every year to June 31st of the subsequent year. During this year-long period, subscribers give their auto-debit consent.

Coverage

The 330 rupees insurance scheme offers coverage of 2 lakh to the nominee of the scheme. The death benefit entitled to the nominee is tax-free.

Tenure

The PMJJY offers coverage for the tenure of 1 year from the date of signing. The insured person can renew the scheme every year till the age of 55 years. The insured person can discontinue and rejoin in the future by providing a health certificate and paying the premium.

Premium

The scheme offers coverage at the minimum premium of Rs. 330 per annum. It is a good opportunity to get a term insurance at a very low rate.

Tax benefit

The premium paid under the insurance scheme is tax-free under section 80C of the Income Tax Act.

Payment mode

The premium is automatically debited from the saving accounts of the subscribers. This is the only available mode of payment for the premium of the policy. The PMJJY is to be renewed between May 25th and May 31st.

Benefits of the330 Rupees Insurance Scheme

Death benefit: A death benefit of Rs 2 lakhs is provided to the nominee in case of the insured passes away.
Maturity benefit: Being the pure term insurance plan, the PMJJY does not offer any maturity benefit.
Tax benefit: The premium paid is tax-free under section 80C of the income tax act. However, if the insured fails to submit form 15 G/ 15 H, any proceeding exceeding 1 lakh will be taxable by 2%.
Risk coverage: The Pradhan Mantri Jeevan Jyoti Bima Yojana provides risk coverage of 1 year, renewable annually.

Eligibility Criteria for the 330 Rupees Insurance Scheme

Anyone aged between 18-50 years with a savings account
Aadhar-linked bank account
Medical certificate to prove that the candidate is not critically ill. (applicable to those applying after the period August 31st, 2015 to November 30th, 2015)

The 330 rupees insurance scheme is a great way for salaried professionals to get reliable insurance coverage. At a premium amount of just Rs 330, this scheme is an affordable investment tool for those starting with insurance or those in the low-income group. Moreover, with the tax benefits and coverage it offers, PMJJBY is a scheme to consider when thinking of insurance policies.