This page provides all the details you need to know about the PM Jeevan Jyoti Bima Scheme (PM JJBS).
Table of Contents
- What is PMJJBS?
- History of PMJJBS
- Objective of PMJJBS
- How does PMJJBS Work?
- Income Tax Benefits
- Who can Join the Scheme?
- Where can I Join this Scheme?
- When can I Join the Scheme?
- Waiting Period for Death Benefits
- Discontinuing and Re-joining the Scheme
- How much Premium should I Pay?
- Death & Maturity Benefits
- Policy Termination - When will the Policy Cover End?
- Which Death Events are Covered in this Scheme?
- Who Offers and Administers this Scheme?
- Where does Your Premium Amount Go?
What is PMJJBS?
PMJJBS stands for Prime Minister Jeevan Jyoti Bima Scheme.
It is a pure Term Life Insurance scheme established by the Government of India to provide life insurance cover to Indians.
Though this scheme is for all Indians, it mainly aims at poor, under-privileged and workers in the unorganised sector.
This scheme provides life insurance cover to your family in case of your death due to any reason.
History of PMJJBS
During the budget for financial year 2015-16, the Prime Minister of India announced various Pension and Insurance schemes for all Indian citizens.
Of which, one such scheme was "Prime Minister Jeevan Jyoti Bima Scheme".
This scheme was effective from 01-June-2015 onwards.
Objective of PMJJBS
The main objective of PMJJB scheme is to provide life insurance cover to people of unorganised sector.
Encourages all Indian citizens to plan for their life insurance cover.
How does PMJJBS Work?
Join PMJJB scheme in a Bank or Post Office
You need to pay the premium amount Rs. 330/- every year to get life insuarnce cover of Rs. 2 Lakh
You need to provide "auto-debit" instructions to the concerned Bank or Post Office to deduct the yearly premium
This scheme provides life cover for 1 year only. You need to renew the policy every year to have life insurance cover
If you die during the coverage period, your nominees will get a lump sum amount of Rs. 2 Lakh
You can renew the policy every year till you reach 55 years of age. After that, you can't renew and you are no longer covered under this scheme
Established by the Government of India
Life insurance scheme for all Indian citizens and it covers death due to any reason
No medical checkup required to join the scheme
The yearly premium is just Rs. 330/- for the coverage of Rs. 2 Lakh
your nominees will receive the lump sum amount of Rs. 2 Lakh in case of your death
Income tax benefits
Income Tax Benefits
Effective 01-Apr-2020, the income tax benefits will depend upon whether you choose old tax system or new tax system.
Old Tax System:
The yearly premium amount will be eligible for tax deduction under Section 80C of Income Tax Act.
In case of your death, your nominees will receive Rs. 2 Lakhs and this amount will get exemption under Section 10D.
New Tax System:
No income tax benefits. The yearly premium amount won't get any deduction benefit under Section 80C of Income Tax Act.
In case of your death, your nominees will receive Rs. 2 Lakh and this amount will get exemption under Section 10D.
Who can Join the Scheme?
The following are the eligibility criteria to join JJB scheme.
You should have a Savings Bank (SB) Account with Bank or Post Office. You can open a new account if you don't have one already
Your age should be between 18 years and 50 years
Once you join the scheme, you need to renew your policy every year as the coverage is for 1 year only. You can keep on renewing till you reach 55 years of age. After that, you can't renew any further.
During the account opening, it is recommended to provide Aadhaar Card details. But, it is not compulsory for account opening. You can provide them at a later stage.
The purpose of the Aadhaar card is for the identification of yourself, your nominees and to avoid lump sum insurance amount settlement issues in the long term.
How many policies can I buy?
At any time, you can have only 1 policy under PMJJB scheme.
Even if you have multiple Savings Bank (SB) accounts, you can join the scheme through one Savings Bank account only.
By mistake, if you buy multiple policies of PMJJB under multiple Bank accounts, your life cover will be limited to Rs. 2 Lakh only. Also, in case of your death, your nominees will get only Rs. 2 Lakh/-. Also, the premium paid from different Savings Bank accounts will not be given back to you.
So, don't make the mistake of opening multiple policies from different Savings Bank accounts.
I am already having life insuarnce policy with other Insuarnce companies. Can I still join PMJJB?
Yes. You can join PMJJB scheme.
PMJJB scheme is independent of other life insuarnce policies. So, you can join PMJJB scheme even if you have life insurance policies with other Insuarnce companies.
Where can I Join this Scheme?
You can join PMJJB scheme at
authorised Bank branches
When can I Join the Scheme?
The scheme's insurance coverage period is for 1 year and it is from June to May (1st June to 31st May). So, it is recommended to join the scheme on or before 31st May.
But, you can join the scheme any time after 1st June as well. In this case, you need to pay full yearly premium amount of Rs. 330/- for the policy period.
For example, if you join the scheme in November, then you need to pay the full year premium of Rs. 330/- though the cover is from November to May during the first year.
Subsequent years, you can renew the policy before 1st June so that you will have 1 year cover from June to May.
Waiting Period for Death Benefits
There is a waiting period of 45 days if you join the scheme on or after 01-June-2016. It means that your nominees can't claim death benefits if you die (due to any reason other than accident) within 45 days of joining the scheme.
The only exception to this waiting period is the death due to accidents. Death due to accidents is covered from day 1 of joining the scheme.
Also, this waiting period of 45 days is applicable if you leave the scheme now and re-join in future years.
But, this waiting period was not applicable to you if you joined the scheme before 01-June-2016. It means that your nominees could claim death benefit from day 1 in case of your death.
Discontinuing and Re-joining the Scheme
This scheme is very flexible in terms of discontinuing or re-joining due to any reason.
If you want to discontinue, just stop paying the yearly premium amount. That's it.
If you discontinue the scheme now and you want to join in future years, it is possible.
In this case, you need to pay full yearly premium amount of Rs. 330/- for the policy period.
Note that you will have to undergo the waiting period of 45 days as you will be considered as a fresh applicant.
How much Premium should I Pay?
You need to pay Rs. 330 every year.
The premium amount is same for everyone irrespective of the age group.
Your yearly premium amount will be deducted from your Savings Bank (SB) account through "auto-debit" facility. So, you need to fill in the "Auto-debit Authorisation" form every year.
You also have the option of providing one-time instruction to auto-debit every year till the policy is active or till you reach 55 years of age.
Government of India will review the premium amount every year based on the number of claims.
But, Government will make sufficient efforts to make sure that there will not be any increase in premium amount in the first 3 years (that is 2015, 2016 and 2017).
Death & Maturity Benefits
Death benefit amount is Rs. 2 Lakh.
That is, your nominees will get Rs. 2 Lakh in case of your death due to any reason during the policy coverage period only.
If you die outside of your policy cover period or after 55 years of age, then your nominees will not get any amount.
Since this scheme is a pure term insurance policy, there is no maturity benefits in this scheme.
It means that you will not get any amount when the policy period gets over or when you reach 55 years of age.
Policy Termination - When will the Policy Cover End?
Your life insurance cover under this scheme will come to an end in the following situations.
when you reach 55 years of age. After that, no life cover will be provided
when you close your Savings Bank (SB) account from which the premium gets deducted for this scheme
when your Savings Bank (SB) account does not have sufficient balance for the premium to be deducted on the due date
If your insurance cover gets over due to insufficient balance in your Savings Bank (SB) account or due to administrative problem with the Bank or Post Office, you can re-join the scheme by paying the full yearly premium.
But, note that you will have the waiting period of 45 days as you will be considered as a fresh applicant.
Which Death Events are Covered in this Scheme?
This scheme covers your death due to any reason. There are no exclusions.
The reason for death can be anything as listed below.
natural disasters like earthquake, flood, etc
any other events
NRI (Non Resident Indians) can join the scheme.
NRI should have a Savings Bank (SB) account with a Bank branch in India to join this scheme.
In case of death of the NRI, the death benefit amount will be paid to the Nominees in Indian Currency (Rupees) only.
Who Offers and Administers this Scheme?
This scheme is offered and administered by LIC of India and other Life Insuarnce companies in partnership with Banks and Post Offices.
The Banks and Post Offices can engage the life insurance company of their choice for providing this scheme to the common public.
Where does Your Premium Amount Go?
Do you know how your yearly premium amount of Rs. 330/- will be allocated for various things? Here is the list.
Out of yearly premium of Rs. 330/-,
your life insurance company will get Rs. 289/- per year
various intermediate bodies for the marketing purposes (like Business Correspondent network, Corporate Agents, etc) will get Rs. 30/- per year
the concerned Bank or Post Office will get Rs. 11/- per year for various administrative works