Cheapest Insurance Plan: The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a one-year term life insurance plan. The plan is valid from June 1st to May 31st every year and can be renewed annually. The Life Insurance Corporation of India (LIC) and other life insurance companies operate this plan through banks and post offices. Under the plan, a nominee is provided with a ₹2 lakh insurance cover in the event of the insured’s death due to any reason.

For information, regardless of the cause of death – illness, accident, or natural disaster – the full sum insured will be paid. No medical test is required to join this plan; only a bank or post office account is required.

Who can benefit?

Indian citizens between the ages of 18 and 50 can avail the benefits of this plan. Those with a savings bank or a post office can apply. NRIs can also join this scheme, provided they have a bank account in India. However, the claim amount will be paid in Indian rupees only. A person can avail of this scheme through only one account. Those who joined the scheme before the age of 50 can renew it every year until they reach the age of 55.

What is the premium?

The annual premium for the Pradhan Mantri Jeevan Jyoti Bima Yojana is only ₹436, which is deducted from the bank account through auto-debit. If a person joins the scheme mid-year, the premium is determined as follows: June to August: ₹436, September to November: ₹342, December to February: ₹228, and March to May: ₹114.

Renewal is mandatory

The full premium of ₹436 is required upon renewal each year. This premium is also tax-deductible under Section 80C of the Income Tax Act. A 30-day grace period applies to the first policy or re-joining.

How to apply for this scheme?

Applying for this scheme is very easy. Applications can be made through a bank branch, post office, internet banking, or mobile app before May 31st of each year. This requires submitting auto-debit authorization and necessary KYC information, such as Aadhaar.

Applying through a Mobile App

Many banks’ mobile apps also offer applications for PMJJBY through the e-Services or Social Security Schemes section. This makes the application process even faster and easier.