This article is part of our complete guide to insurance in India. Two government schemes give every bank or post office account holder a basic layer of protection for less than the price of a meal: PMJJBY for life cover and PMSBY for accident cover. Here is exactly what they pay, what they leave out, and why they should sit underneath your own term insurance, not replace it.
The Short Answer
PMJJBY (Pradhan Mantri Jeevan Jyoti Bima Yojana) pays ₹2 lakh on death from any cause for a premium of ₹436 a year. You can join between 18 and 50, and the cover continues until 55 as long as you renew every year.
PMSBY (Pradhan Mantri Suraksha Bima Yojana) pays ₹2 lakh on accidental death or total permanent disability, and ₹1 lakh on partial permanent disability, for ₹20 a year. It is open from 18 to 70.
Together they cost ₹456 a year, are paid by auto-debit from one savings account, and run from 1 June to 31 May. For almost anyone eligible they are worth having. But ₹2 lakh replaces only a few months of income for most families, so they are a floor, not a plan.
₹456 a year buys a floor under your family. It does not build the house.
Side By Side
PMJJBY and PMSBY compared
| PMJJBY (life) | PMSBY (accident) | |
|---|---|---|
| Pays on | Death from any cause | Accidental death or permanent disability |
| Cover | ₹2 lakh | ₹2 lakh death or total disability; ₹1 lakh partial disability |
| Annual premium | ₹436 | ₹20 |
| Age to join | 18 to 50 | 18 to 70 |
| Cover ends | At 55, if renewed every year | At 70 |
| Waiting period | 30 days for non-accidental death after first joining | None |
| Cover year | 1 June to 31 May | 1 June to 31 May |
| Run by | LIC and other life insurers, through banks and post offices | Public sector and other general insurers, through banks and post offices |
Figures are as published by the Department of Financial Services (updated January 2026). The premiums were last revised on 1 June 2022, from ₹330 and ₹12.
Life Cover
How PMJJBY works
PMJJBY is a one-year term insurance policy, renewed every year. There is no maturity value and no return of premium: if you survive the year, the premium has bought a year of protection, exactly as with any term plan. There is no medical examination; you sign a declaration of good health when you join.
- 30-day waiting period. When you first join, death from causes other than an accident is not covered for 30 days. Accidental death is covered from day one.
- One account only. You can join through only one bank or post office account, even if you hold several. Duplicate enrolments do not double the cover.
- Joint account holders can each join separately, each paying their own premium for their own ₹2 lakh cover.
- NRIs with an eligible Indian bank account can join, but claims are paid only in rupees.
Joining mid-year costs less
If you join for the first time after June, you pay a reduced premium for the rest of the cover year. Renewals are always the full ₹436.
| First-time enrolment in | Premium for the rest of the cover year |
|---|---|
| June, July or August | ₹436 |
| September, October or November | ₹342 |
| December, January or February | ₹228 |
| March, April or May | ₹114 |
Accident Cover
How PMSBY works
PMSBY covers accidents only, which the scheme defines as a sudden, unforeseen and involuntary event caused by external, violent and visible means. Illness, however serious, is not covered.
| Event | Payout |
|---|---|
| Accidental death | ₹2 lakh |
| Total and irrecoverable loss of both eyes, or use of both hands or both feet, or one eye and one hand or foot | ₹2 lakh |
| Total and irrecoverable loss of sight of one eye, or use of one hand or one foot | ₹1 lakh |
What PMSBY does not cover
- Suicide.
- Hospital bills. PMSBY pays a fixed amount for death or disability; it does not reimburse treatment costs. That is what health insurance is for.
- Disability below the defined levels. Without irrecoverable loss of an eye, hand or foot, no benefit is payable.
- A missing person without documentary confirmation of death.
Only one claim is paid per person. Road accidents, drowning and crime-related deaths must be reported to the police, because the FIR and post-mortem report are needed for the claim.
The Scale
How many people use these schemes
By the end of April 2026, cumulative enrolment had crossed 27 crore under PMJJBY and 58 crore under PMSBY. PMJJBY had paid more than ₹21,500 crore to over 10.7 lakh families, and PMSBY nearly ₹3,660 crore to over 1.84 lakh families. For many of those families it was the only insurance they had, which is both the strength of the schemes and their limit.
Getting Started
How to join, and how a claim works
Joining
- Through your bank branch, net banking or mobile banking app, or a banking correspondent. Most banks offer one-click enrolment for both schemes.
- Through the post office or India Post Payments Bank, if your account is there.
- Choose a nominee and give an auto-debit mandate. The premium is deducted once a year, around late May for renewal.
Claiming
The nominee approaches the bank or post office where the account was held, with the claim form, the death certificate and the nominee’s bank details. For PMSBY accident claims, add the FIR and post-mortem report; for disability, a certificate from a government civil surgeon. The bank forwards the claim to the insurer, which pays into the nominee’s account. Tell your family which account the schemes run on: a claim nobody knows about is never made.
The Honest Limit
Why ₹2 lakh is a floor, not a plan
A household that depends on an income of ₹50,000 a month loses ₹6 lakh a year when that income stops. PMJJBY and PMSBY together would replace well under a year of it. Most earners need cover of several times their annual income, which is what our term insurance sizing guide and the human life value calculator help you work out.
- Join anyway. At ₹456 a year, both schemes are worth holding on top of other cover, for anyone eligible.
- They matter most for people who cannot easily buy private term insurance: those without regular income proof, older applicants, or people in occupations insurers load heavily.
- For a young earner, a private term plan usually gives far more cover per rupee, because the PMJJBY premium is the same at every age.
- Neither scheme pays hospital bills. For that you need health insurance.
Tax
Tax treatment
The PMJJBY premium is a life insurance premium, so it counts towards the deduction under section 123 of the Income-tax Act, 2025 (section 80C of the 1961 Act) if you file under the old tax regime. The ₹2 lakh death benefit paid to the nominee is exempt, like other life insurance death claims. The PMSBY premium is accident insurance and does not qualify for that deduction. No GST is charged on either premium.
Avoid These
Common mistakes
1. An empty account on renewal day
Renewal is by auto-debit around the end of May. If the balance is short, the cover lapses, and rejoining PMJJBY restarts the 30-day waiting period. Keep at least ₹456 in the account in late May.
2. Closing the account the schemes run on
Closing or leaving the account dormant ends the cover. If you change banks, enrol again through the new account.
3. Assuming PMSBY covers illness
It does not. Only accidents, and only death or defined permanent disability.
4. Treating the schemes as enough
₹2 lakh is a useful top-up. As a family’s only protection, it falls far short.
Key takeaways
→ PMJJBY pays ₹2 lakh on death from any cause for ₹436 a year; join between 18 and 50, covered until 55.
→ PMSBY pays ₹2 lakh on accidental death or total disability and ₹1 lakh on partial disability for ₹20 a year; open from 18 to 70.
→ Both run from 1 June to 31 May through one bank or post office account, by auto-debit; keep the balance ready in late May.
→ PMJJBY has a 30-day waiting period for non-accidental death when you first join; PMSBY covers accidents only and pays no hospital bills.
→ At ₹456 a year both are worth holding, but ₹2 lakh is a floor: most earners still need their own term insurance sized to their income.
Questions
Frequently asked questions
What is the PMJJBY premium in 2026?
₹436 a year for ₹2 lakh of life cover. First-time joiners after August pay a reduced pro-rata premium: ₹342, ₹228 or ₹114 depending on the month. Renewals are always ₹436.
Can I join PMJJBY after 50?
No. You can join only between 18 and 50. If you joined before 50 and renew every year, the cover continues until age 55.
Does PMSBY cover death from illness?
No. PMSBY pays only for accidental death or permanent disability caused by an accident. For death from any cause you need PMJJBY or term insurance.
Can I take PMJJBY from two banks for ₹4 lakh of cover?
No. Each person can join through only one account. Duplicate enrolments do not increase the cover.
How do I check whether I am enrolled?
Check your bank statement for the annual auto-debit around late May or early June, or ask your branch or banking app. The bank also issues an acknowledgement of insurance when you enrol.
Is the PMJJBY claim taxable?
No. The ₹2 lakh death benefit paid to the nominee is exempt, like other life insurance death claims.
Keep Learning
Next steps: What is term insurance · How much term insurance do I need? · Human life value calculator · Term insurance riders
The bigger picture: The complete guide to insurance in India
About the author
Ujjwal Tiwary
ARN-144500 · NISM Series V-A certified since 2018 · Ranchi & Deoghar, Jharkhand
Ujjwal Tiwary is an AMFI-registered mutual fund distributor (ARN-144500) based in Ranchi and Deoghar, Jharkhand, and has held the NISM Series V-A certification since 2018. He works with families on mutual funds, insurance and income tax returns, and writes or personally reviews every article on FactFinances. He is not a SEBI-registered investment adviser; nothing on this site is personalised advice.
Disclaimer: FactFinances provides educational content only. This article is for general information and is not insurance, tax, financial or legal advice, and does not recommend any specific product or insurer. Insurance is the subject matter of solicitation. Scheme features are as published by the Department of Financial Services, Government of India (page updated January 2026), and enrolment and claims figures as reported in May 2026; premiums and terms can be revised by the government. Tax treatment depends on your circumstances and the regime you choose. ARN-144500. Regulatory information: IRDAI.