What are the benefits Pradhan Mantri Jeevan Jyoti Bima Yojana offers?

One of the non-participating, non-linked, term insurance schemes which offer risk cover against death on the life of the policy buyer is the Pradhan Mantri Jeevan Jyoti Bima Yojana. The term insurance is supported by the Central Government and administered by the Life Insurance Corporation of India (LIC). Even private-sector insurance companies administer the scheme. Considering it is a term insurance plan, the plan offers death benefit if the policyholder passes away during the term of the insurance.

You receive no benefit after maturity. Following are some details about PMJJBY


  • Any individual who is between 18 years and 50 years old can purchase the policy.
  • The policy provides life coverage until they turn 55 years old.
  • If you wish to apply for the scheme, you need to own savings account in the desired bank.
  • Policyholders need to link their Aadhaar with the account if they wish to purchase the plan.
  • If the individual purchases the policy after November 30, 2015, they need to provide a certificate of good health.


  • Death benefit: In case of the untimely death of the policyholder during the tenure, the insurance provider pays the full sum assured to the nominee. The maximum coverage the nominee receives is INR 2 lakh. Even if the policyholder has purchased the scheme from multiple insurers or availing them under numerous savings account, the maximum amount remains the same. In such scenarios, the nominee receives the coverage amount for the first application.
  • Maturity benefits: Considering it is a term insurance plan, it does not require cash value. Therefore, there are not benefits provided at maturity or in the form of survival benefits.
  • Tax benefits: You can claim tax benefits under Section 80C and Section 10(10D) of the Income Tax Act for the premiums and the payout that the nominee receives for Pradhan Mantri Jeevan Jyoti Bima Yojana. Since tax laws are subject to change, consult a tax advisor from time to time.


  • The scheme is offered to consumers at affordable premiums which are around INR 330 annually, excluding the service tax.
  • The policy term for PMJJBY is around a year. However, they are annually renewable.
  • The coverage offered is INR 2 lakh.
  • The lien period of the scheme is 45 days from the date of enrolment.
  • There is no free-look period offered under the scheme.
  • According to the Insurance Act, the policyholder can make a nomination while purchasing the scheme under Section 39.
  • Policyholders receive a grace period of 30 days for paying the premiums.
  • Regardless of when the policyholder subscribes for the scheme, the renewal happens only on June 1 every year.
  • If you are a new policyholder, death within the first 45 days does not get covered. Further, if the death occurs during the lien period and is non-accidental, no claims get admitted.
  • Policyholders can terminate the PMJJBY scheme anytime and join in the future.

The banks that offer the scheme are Bank of Baroda, Yes Bank, Vijaya Bank, State Bank of India, Kotak Mahindra, IDBI Bank, and ICICI Bank.

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