Pradhan Mantri Jeevan Jyoti Bima Yojana

– Features, Benefits and Eligibility

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. In order to help you know more about the policy, we have discussed
some of the key features and benefits offered by the policy.

Salient Features of Pradhan Mantri Jeevan Jyoti Bima

Yojana
 The policy provides life coverage for 1 year.
 The insured can renew the policy every year.
 According to one’s own choice, the insured can walk out of the scheme at any time and
rejoin it in future.
 The policy offers a maximum sum assured of Rs2 lakh.
 As compared to the other term insurance policy the plan offers very low premium rates
per year i.e. Rs. 330. Moreover, the premium rate is equal for all age groups ranging
from 18 to 50 years.
 The claim settlement process offered by the policy is very simple and subscriber
friendly.
 There are certain cases under which the death benefit offered by the policy is
terminated:-

1. If the insured person is above 55 years.

2. The policy holder is insured through different bank accounts.
3. If the insured has inadequate balance in saving bank account to keep the insurance in
force.

In case you fail to purchase the scheme in the initial years you can join the policy in the
subsequent years by paying the annual premiums and submitting a self-attested health
certificate.

Benefits Offered by Pradhan Mantri Jeevan Jyoti Bima

Yojana
 Death Benefit- In case of demise of the insured person the PMJJBY provides a death
coverage of Rs2,00,000 to the beneficiary of the policy.
 Maturity Benefit- As this is pure term insurance plan, PMJJBY does not offer any
maturity or surrender benefit.
  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 a risk coverage of 1 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 your saving bank
account.

The Eligibility Criteria of the policy are:-

1. Any person aged between 18- 50 years having a saving bank account can join this
scheme through participating banks.
2. Even if you have multiple bank accounts, you can subscribe this scheme by only one
saving bank account.
3. In order to avail the benefits offered by the policy, it is mandatory to link your adhaar
card to the participatory bank account.
4. Insurance buyers joining the scheme after the primary enrolment period ranging from
31st August 2015- 30th November 2015 will have to submit a self-attested medical
certificate as a proof that he/she is not suffering from any critical illness mentioned in
the policy declaration form.

For the convenience of our buyers, here we have shown the policy details in the tabular form.

Entry Age Minimum Maximum

18 years 50 years
Maximum maturity age 55 years
Policy Term 1 years( Renewable yearly)
Sum Assured Rs2,00,000
Rs330(inclusive of Rs41 towards
Premium amount
administrative charges)
45 days from the enrolment date into the
Lien period
scheme
Atal Pension Yojana – APY Scheme
Eligibility & Benefits

Atal Pension Yojana is a pension scheme mainly aimed at the unorganized sector such as maids,
gardeners, delivery boys, etc. The goal of the scheme is to ensure that no Indian citizen has to worry
about any illness, accidents or diseases in old age, giving a sense of security. Private sector
employees or employees working with such an organization that does not provide them pension
benefit can also apply for the scheme. There is an option of getting a fixed pension of Rs 1000, Rs
2000, Rs 3000, Rs 4000, or Rs 5000 on attaining an age of 60. The pension will be determined based
on the individual’s age and the contribution amount. The contributor’s spouse can claim the pension
upon the contributor’s death and upon the death of both the contributor and his/her spouse, the
nominee will be given the accumulated corpus. However, if the contributor dies before completing
60 years of age, the spouse is also given an option to either exit the scheme and claim the corpus or
continue the scheme for the balance period.

2. Eligibility

To avail benefits from the Atal Pension Yojana, you must fulfil the below requirements:

1. Must be a citizen of India.

2. Must be between the age of 18-40
3. Should make contributions for a minimum of 20 years.
4. Must have a bank account linked with your Aadhar
5. Must have a valid mobile number
4. Monthly Contributions

5. Important Facts to know about APY

1. Since you will be making periodic contributions, the amounts will be debited automatically
from your account. You need to make sure that you have sufficient balance in your account
before each debit.
2. You can increase your premium at your will. You just have to visit your bank and talk to your
manager and make the necessary changes.
3. In case you default on your payments, a penalty will be levied. A penalty of Rs. 1 per month
for a contribution of every Rs. 100 or part thereof.
4. In case you default on your payments for 6 months, your account will be frozen and if the
default continues for 12 months, the account will be closed and the remaining amount will
be paid to the subscriber.
 5. Early withdrawal is not entertained. Only in cases like death or terminal illness, the
subscriber, or his/her nominee will receive the entire amount back.
6. In the event that you close the scheme before the age of 60 for any other reason, only your
contribution plus interest earned will be returned. You will not be eligible to receive the
government’s co-contribution or the interest earned on that amount.

All About Pradhan Mantri Suraksha Bima

Yojana
With the minimum premium rate of Rs. 12/- per annum this policy is most beneficial to the
poor and low-income section of the society. Pradhan Mantri Suraksha Bima Yojana provides
life coverage of Rs. 2 lakh for the accidental demise and permanent total disability and Rs. 1
lakh for permanent partial disability.

Individuals within the age group of 18-70 years having a participating savings bank account
can subscribe to this scheme. In case you have more than one saving bank account you can
subscribe to the scheme by using only one saving bank account. To help you know more about
the Pradhan Mantri Suraksha Bima Yojana, further in this article we have briefly discussed the
various aspects of the policy.

What is Covered Under PMSBY Policy and for How Much?

Under Pradhan Mantri Suraksha Bima Yojana a death benefit of Rs. 2 lakh is available to the
beneficiary of the policy in case of accidental demise of the insured person. Moreover,
coverage of Rs. 2 lakh is provided in case of total disability like irrecoverable or total loss of
both the eyes, or loss of use of both the hands and feet, paralysis, etc. In case of partial
disability, a life coverage of Rs1lakh is provided to the insured person.

The coverage provided by PMSBY is in addition to any other insurance plan the subscriber
has. As this is a pure life insurance plan the scheme does not offer any mediclaim i.e. it does
not offer any reimbursement of hospitalization expenses caused due to an accident.

Inclusion and Exclusion

As defined under Pradhan Mantri Suraksha Bima Yojana any death, accidents, and disability
caused due to natural calamities is covered by the policy. However, the plan does not provide
any coverage against suicide but death due to murder is covered under the policy. The plan also
does not provide any coverage in case of irrecoverable loss of eyesight loss of one hand or foot.

Will I get any tax benefits on joining the scheme?

The entire premium paid by the subscribers will be tax free under Section 80C. Furthermore,
all the proceeds received up to Rs. 1,00,000/- (one lakh) will be exempted from tax under
Section 10(10D). For all the proceed amounts exceeding Rs. 1,00,000/-, a TDS at the rate of
2% of the total proceeds will apply if Form 15H or Form 15G is not submitted to the insuring
agency.