PMJJBY vs LIC Term Plan: Which Gives Better Life Cover?

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:

1. **LIC Jeevan Amar (Term Plan):** Rs 1 crore cover at Rs 7,000-10,000/year — this is your main protection 2. **PMJJBY:** Rs 2 lakh at Rs 436/year — keep it running as a low-cost extra layer 3. **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.