Low-Cost Life Cover
PM Jeevan Jyoti Bima Yojana (PMJJBY)
Verified Indian financial mathematics, statutory regulations, and step-by-step actionable breakdowns.
Expected Yield₹2 Lakh Life Cover
Lock-In Tenure1 Year Renewable
Risk LevelZero Risk
Tax StatusTax-Free 10(10D)
Overview & Statutory Background
PMJJBY is a one-year renewable term life insurance scheme offering ₹2 Lakh cover on death due to any reason. The annual premium is auto-debited from your bank account, making it one of the cheapest life covers in India.
Key Features & Operational Guidelines
₹2,00,000 death benefit for any cause of death
Annual premium of ₹436 auto-debited each year (rate subject to revision)
Enrolment through any participating bank or post office
Cover year runs from 1 June to 31 May
Who is Eligible to Invest?
- •Age 18 to 50 years with a bank account and Aadhaar-linked KYC
- •Cover continues to age 55 provided premium is paid
Indian Taxation Breakdown
| Stage | Tax Treatment |
|---|---|
| Initial Investment | Premium may be eligible for deduction under Section 80C (Old Tax Regime). |
| Interest & Returns | N/A. |
| Maturity / Withdrawal | Death claim proceeds are tax-free under Section 10(10D). |
Advantages & Limitations
Key Advantages (Pros)
- ✓Extremely affordable premium
- ✓No medical test at enrolment (declaration of good health)
- ✓Simple auto-debit enrolment
Important Limitations (Cons)
- ✕₹2 Lakh cover is far below real family need
- ✕Cover ends at age 55
- ✕Waiting period of 30 days for non-accidental death on first enrolment
PM Jeevan Jyoti Bima Yojana (PMJJBY) FAQs
No. ₹2 Lakh will not replace a breadwinner's income. Use it as a supplement and buy a pure term plan worth 10-15 times your annual income.
Calculate Compound Returns
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