Many Indians start their insurance journey with PMJJBY — the Pradhan Mantri Jeevan Jyoti Bima Yojana. For just ₹436/year, it offers ₹2 lakh cover. But as your income grows or responsibilities increase, that ₹2 lakh may no longer be enough.
So a common question we hear in 2025:
“Can I switch from PMJJBY to a private term insurance plan?”
Let’s break it down in simple terms.
Short Answer: YES — But It’s Not a ‘Switch’, It’s a Transition
PMJJBY is a group insurance plan offered via your bank account.
Private term plans are individual policies underwritten directly by life insurance companies.
You can’t “transfer” one into the other — but you can absolutely exit PMJJBY and buy a term insurance policy that gives your family better protection.
Here’s What You Should Do Step-by-Step:
Step 1: Buy a Term Insurance Plan First
Before you cancel PMJJBY, secure your new policy — so there’s no gap in coverage. Look for plans offering ₹50 lakh to ₹1 crore cover, especially if you have dependents.
Step 2: Exit PMJJBY via Your Bank
You can submit a written application at your bank branch to opt out of PMJJBY. Alternatively, some banks allow cancellation via internet banking or mobile app.
Step 3: Keep Both (Optional Strategy)
Some experts suggest you don’t cancel PMJJBY at all — just keep it as backup. ₹436/year is negligible, and it adds a little extra coverage in case of sudden death.
Why Do People Shift to Term Insurance?
Because PMJJBY is not enough once your responsibilities grow.
- A home loan
- A child in school
- A spouse without income
₹2 lakh won’t help your family after you’re gone.
But a ₹1 crore term plan can cover loan EMIs, education, and income replacement for years.
Common Mistakes to Avoid
- Cancelling PMJJBY before new policy is active
- Choosing a term plan without disclosing health history
- Thinking insurance is investment — it’s protection
“Can You Switch from PMJJBY to a Private Term Plan?” —
Before making the switch, it’s worth understanding how PMJJBY actually stacks up against other popular options. Our detailed breakdown — PMJJBY vs PMSBY vs Term Insurance: Which One Truly Protects Your Family? — helps you compare costs, coverage limits, and long-term value so you can make the smartest move for your family.
PMJJBY is a good starting point. But it’s not the destination.
Once your life gets more financially complex, switching to a customized term insurance plan is a smarter move — but it’s important to plan the switch carefully so your family isn’t left uninsured during the transition. Whether you continue with PMJJBY or move to a private plan, what matters most is that your loved ones stay protected. Compare your options, choose wisely, and make sure you stay insured every step of the way.
