Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a government-backed term insurance scheme offering Rs 2 lakh life cover at just Rs 436 per year (Rs 1.19 per day). It is deducted automatically from your bank account and renewed annually.
PMJJBY at a Glance
- ▸Sum Assured: Rs 2 lakh (fixed)
- ▸Annual Premium: Rs 436 (auto-debit from bank)
- ▸Age: 18 to 50 years (coverage until 55)
- ▸Death Benefit: Rs 2 lakh to nominee on policyholder's death
- ▸No Medical Exam: Required enrollment through bank only
- ▸Tenure: Annual renewal - not a lifelong policy
The Problem with PMJJBY as Your Only Cover
Rs 2 lakh sounds like a lot - but consider this: If your family depends on your Rs 40,000/month income, they need roughly Rs 40-50 lakh to maintain their lifestyle for 10 years. PMJJBY covers just Rs 2 lakh - less than 5% of what they actually need.
I have met families in Gorakhpur where the breadwinner had only PMJJBY. When they passed away, the Rs 2 lakh lasted barely 3-4 months.
PMJJBY as a Supplement (Good Strategy)
PMJJBY makes excellent sense as a cheap add-on, not as your main cover. Here is the recommended layered approach:
- ▸LIC Jeevan Amar (Term Plan): Rs 1 crore cover at Rs 7,000-10,000/year - this is your main protection
- ▸PMJJBY: Rs 2 lakh at Rs 436/year - keep it running as a low-cost extra layer
- ▸PMSBY (Accident Insurance): Rs 2 lakh at Rs 20/year - include this too
Total cost: approximately Rs 8,000-10,500/year for Rs 1.04 crore combined cover. That is comprehensive protection.
LIC Jeevan Amar vs PMJJBY - Quick Comparison
| Feature | PMJJBY | LIC Jeevan Amar | |---|---|---| | Sum Assured | Rs 2 lakh | Up to Rs 5 crore | | Premium | Rs 436/year | Rs 7,000-15,000/year | | Coverage | Till age 55 | Till age 80 | | Renewal | Annual | Fixed term | | Medical | No | Required above certain sum assured |
Conclusion: Enrol in PMJJBY through your bank (if you have not already - it takes 5 minutes). Then call Ajay Kumar Poddar at 9415313434 to add a proper LIC term plan on top.
